Well, it's no surprise the stock market is jumping around with losses one week and gains another. Is it a correction? Is it China? Is it ISIS? Well, no one really knows! That's the way the stock market is. Individual investors have no influence or control of how specific stocks perform and institutional investors can barely influence a stock. So, why do we invest in the stock market if we have zero control over how our stocks do? It's because over the last nine decades our grandparents and parents invested in stocks and they seemed to do ok so we do it because they told us we needed to do it... it's the American way, right!?
Needless to say, I am skeptical about the stock market, as are many middle-agers and younger. While corporate America seems to be bullish on Wall Street right now all it takes is a bad CEO or faulty brakes to make a stock slide downward.
Good news: That's not the way real estate investment works. Historically, real estate, aside from a few economical hiccups has been on a steady incline for those same nine decades the stock market has moved like a Richter scale on the San Andreas fault! You see, with careful research of population growth, commerce enhancement and overall demographic trends anyone can successfully invest in real estate without anyone or anything influencing the outcome.
That leads me to the relationship between the stock market and real estate investment in a place like Naples, Florida. Clearly, when the stock market is hitting all time highs like 17,000 people from the north come here and spend loads of money on everything from $1,500 hotel rooms at the Ritz-Carlton, Naples to dining at fancy eateries on 5th Avenue South and buying multi-million dollar homes and condos on waterways and golf courses. That's a good thing! However, what is the sentiment of those same people when the stock market becomes volatile like it is now? Well, the answer is not clear cut. However, in speaking with fellow realtors in my office which specializes in high-end luxury real estate, their buyers and sellers are looking at real estate holdings and potential purchases and are planning to increase their investment portfolio with more Naples based real estate. You see, Naples has become a very safe investment haven due to the fact that it has become an international destination for wealthy people. Where else can you sit on the beach in a bathing suit in February? Where else can you golf in shirt sleeves at a number of award winning courses within 15 minutes from the beach...in February? Where else can you expect to realize a solid 10% increase in your real estate investment annually? While there may be a few other places on earth where you can do all these things, there is no place like Naples, Florida.
Don't believe me? Let me prove it to you. Give me a call, come to Naples. We'll chat over a fine meal at my favorite restaurant on 5th and find you a great place to hang your hat for the winter. When it comes time to sell there's a good chance you'll come out ahead!
Mitchell L. Norgart
Gulf Coast International Properties