Over time, the value of a property will fluctuate up and down.
Over a long enough period of time, property values typically appreciate.
But, of course, in real estate there is always a certain amount of risk.
When your home appreciates you have more equity to borrow against, and you'll generate a larger profit when you sell.
There is a variety of reasons why property values in Naples go up and down. So, how will you be sure what you're purchasing today will appreciate over time?
Choosing a REALTOR® in Naples who is familiar with the factors that influence local prices is the most important aspect to consider.
Many think that the economy is the number one factor impacting real estate appreciation.
Naturally,
interest rates, unemployment, job growth, government programs and several other national determinants have a definite influence on your home's worth.
However, your house's value and the elements that play the biggest role in its appreciation are specific to the local Naples economy and housing market.
Access to services - Convenient access to schools, work and amenities like shopping, restaurants and entertainment is important to a lot of buyers and will greatly influence home values.
So those communities typically appreciate, or keep their value, best.
Recent sales - Your agent should provide you with information on the recent home sales in the districts that you'd like to live in. You'll want to know average time on market, selling versus listing price and more.
Appreciation history - Have home prices increased or decreased over the last 5 to 10 years? Is the neighborhood believed to be desirable because of its location or affordability?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a good combination of jobs in an area, or does it rely on just one industry?
All these play a role.