The Florida city of Cape Coral was incorporated in 1970, 12 years after the very first family moved into the area. The transformation that has taken place, from the tiny peninsula of what was Redfish Point, sitting peacefully across from the Caloosahatchee River, to what it is now is quite staggering. The place was hyped like nothing else before it, with celebrities promoting it on prime time TV and specialist salesmen sent abroad to target ex-patriots in some of Europe’s leading countries, such as England, Italy and in particular Germany.
It all seemed to do the trick, and since then right up to the present day, the real estate business has grown at an astonishing rate, as people flooded into the region to become part of the fabulous development, which has become the United States largest master-planned community. Consequently, having a grasp of the market trends has become a critical skill to master. The very first Cape Coral realty agent was called, it might be said predictably, Wonderland Realty, such was the belief in the place, but their methods would have been very different from those used by today’s advisors.
Nowadays, Cape Coral realty supports the use of the affordability index to locate the best real estate investment properties in the area. The Housing Affordability Initiate, more commonly referred to as the HAI, is an innovative measuring facility which concentrates on varying aspects, such as structural characteristics and amenities in relation to job prospects, quality of schooling and the local environment. This is a newer alternative to the more established National Association of Realtors’ Housing Affordability Index, but each conclude more or less the same notion, which is that households which spend in excess of 30% of their total income on their housing costs, excluding taxes and insurance, have a genuine affordability problem.
The National Association of Realtors, which is North America’s largest trade association, and a self-regulatory organization, publish monthly statistics which are an excellent guideline to follow. Of course there will be many who have never even heard of an affordability index, but they should be reassured that they are designed to assist and offer genuine advice for those who may be close to, or just over the accepted means figure. Indeed the huge growth in Florida real estate, and especially Cape Coral realty, has been directly attributed to affordability indexing. The rapid appreciation in home values slightly dilutes their importance, but it remains possible to locate top quality investment opportunities by using the index method.
With the HAI, it is possible to totally encompass all costs, including those hidden ones, which regularly have a nasty habit of returning to bite us. It has the capacity to factor in opportunity costs, including the important aspects of the economic situation within the immediate region. Conversely, any poor neighbourhoods will have costs imposed to reflect the fraught nature of the environment. These affordability indexes allow for both specifics and variables to be taken into account, remaining rigorous, yet at the same time flexible in their approach. It all makes for extremely powerful tools in addressing the issues surrounding affordable housing.