Which is a Better Place to Invest – Naples Park or Park Shore?
You’ve likely already been sold on the magic of investing in Naples, Florida. With the beautiful white sand beaches, warm weather, high value properties, and amazing Florida tax benefits – we don’t blame you for wanting a piece of the pie. But it’s not enough to decide to invest in Naples… you need to decide where in Naples you want to invest. The Paradise Coast is home to dozens of high-end neighborhoods, from the luxury beachfront properties of Park Shore to the suburban oasis of Naples Park. It’s all about finding the best investment property for your needs.
That’s what the team at Naples Relocation Experts is here to help you do. We specialize in a variety of real estate services beyond just buying and selling. We’re also experts on relocation and real estate investing! As born-and-raised Neapolitans with years of experience in the Naples housing market, we have an intimate knowledge of the places in and around our local area. So we know the best locations to invest in to achieve and exceed your goals!
If you’re torn between investing in high-end luxury neighborhoods versus more accessible communities, this is the blog for you. Today, we’re discussing the benefits of investing in Naples Park over Park Shore.
About Naples Park
Naples Park is a census-designated place (CDP) and unincorporated community in Naples, Florida. The total area covers over 1.2 square miles and has a population of 6,151. The community is considered part of North Naples, just north of Pelican Bay. Naples Park offers a suburban feel with a unique balance of affordability, prestige, and a laidback lifestyle. Close to Naples’ famous beaches and pristine golf courses, it’s home to a variety of restaurants, coffee shops, boutiques, and parks.
About Park Shore
Park Shore is a beachfront neighborhood in the City of Naples, Florida, located between Pelican Bay and The Moorings. Developed in the 1970’s and 1980’s, it’s become a luxury community of homes and condos across 760 acres along the Gulf Coast. The area is known for its waterways, private Gulf-side boardwalk, and park-like setting. With close proximity to high-end shopping destinations and waterside restaurants, this neighborhood is ideal for taking full advantage of affluent coastal living.
Why invest in Naples Park over Park Shore?
When it comes down to it, Naples Park and Park Shore might be in the same metro area, but they can feel like entirely different worlds. Park Shore has luxurious and expensive waterfronts, and Naples Park is geared more toward investment properties, vacation rentals, and seasonal homes.
“It’s apples to oranges when comparing these neighborhoods. They’re not similar,” explained Drew Josephson, founder of Naples Relocation Experts. “We’re looking at this from a purely investment standpoint.”
When choosing to invest between the two neighborhoods, it’s all about your investment strategy and what works best for your specific goals. Below are five reasons why you should consider investing in Naples Park over Park Shore.
1. Bigger Isn’t Always Better
Most real estate agents and developers live by the motto that bigger is better. Everyone in real estate wants the multi-million dollar waterfront properties in prime locations. But is that actually the best investment strategy for you?
It depends on the level you’re operating at. Larger investors might not consider areas like Naples Park because of the lower housing prices. But even big money developers can’t deny the benefits of investing in more affordable neighborhoods.
Let’s look at an example. You’re doing two pro formas – one for Naples Park, and one for Park Shore. They model out roughly the same, and you expect to make about 70% return on your cash. However, with Naples Park, it’s going to take 15 to 18 months, and Park Shore is going to be 18 to 24 months. If the timeline is 18 versus 24 months, Naples Park is actually a better internal rate of return (IRR).
“I recently spoke with a developer who had a lot of money tied up in a multi-million dollar project. It had been two-and-a-half years, and he still wasn’t done,” said Drew. “He was attracted to Naples Park because it was straightforward with a faster turnaround.”
2. Reduced Planning Time with Established Building Models
If you establish a building model, you can reduce your timeline even more for an even faster turnaround. In Naples Park, most of the lots are the same size, so creating a standard model makes sense. In Park Shore, lots tend to vary in size so finding a model you can duplicate becomes more difficult. At Naples Relocation Experts, we already have a model for a 50-foot-wide lot. So, when we go to build another property in Naples Park, we use a similar model.
If we go to Park Shore, we would have to hire an architect, sink time into planning and permitting, and deal with a longer drag on our capital. With our Naples Park Model, we’ve saved ourselves 3 to 6 months of planning, and we use the same builders that are already familiar with the home. It’s streamlined our development process, so we see our returns faster than ever.
3. Higher Housing Demand
When comparing investing in Naples Park versus investing in Park Shore, you also have to consider the levels of demand. How much more demand is there in each area? For example, say you have a new construction home in Naples Park for $2 million and one in Park Shore for $8 million. What percentage of the population can afford $2 million versus $8 million? The answer is obvious: more people can afford a $2 million home than an $8 million home.
“You have to look at it through the eyes of a buyer,” explained Drew. “Not everyone can afford to live in Park Shore – but plenty of them can enjoy Naples Park.”
There will clearly be more demand for the Naples Park property than Park Shore. Higher demand offers more stable or increased housing prices as well as less time sitting on the market.
4. Short-Term Rental Opportunities
If the market shifts and you need a back-up plan for selling the property, renting is always an option. However, Park Shore is located in the City of Naples, where non-HOA rentals have a minimum 30-day lease requirement. Naples Park, on the other hand, has no term restrictions and allows for nightly, weekly, or monthly rentals. This provides the flexibility to offer rentals to the last-minute visitor during the off-season and capitalize during peak season. To learn more, check out our blog “Naples Park, A Short-Term Rental Haven in the Last Frontier.”
5. Less Money, Less Time, & Less Risk
Overall, Naples Park is a quicker return on your money, and you’re not going to have as much tied up for as long. That also means there’s less risk. The longer your money is out there, the more risk you take. The market could shift, or there might be turbulence in the short-run because of mortgage rates and inflation. Naples Park takes less money, less time, and therefore less risk. It’s a win-win-win.
Our Naples Park Investment Properties
Why do we believe so strongly in the potential of Naples Park investment properties? Because we’ve witnessed their success for ourselves! We have a proven track record of thriving investment properties that’s provided us with valuable firsthand knowledge of the Naples real estate investment process.
We recently closed on one of our Naples Park properties for $1.8 million, and that was a record sale for the 800 block. That’s because our team took the time to research the area and tailor its development and pricing to what would sell. We’re reasonable on price and include desirable elements in the home. For example, the home we sold had Taj Mahal quartzite countertops, a metal roof, upgraded bathrooms, and other high-end finishings. In the end, the property sold for a 150% return on cash.
We love to tell our clients about our experience locating, financing, developing, and selling these properties so they can do the same. Learn more by reading our blog “Our Naples Park Investment Properties.”
What You Should Know Before Investing in Naples
No matter where you choose to invest in Naples, it’s important to know who you’re going to work with. You need to decide on an agent, builder, and architect. When you’re new to the area, it’s hard to know where to go or who to ask. Relationships are everything in real estate, and you need a team that you can trust.
That’s where Naples Relocation Experts truly has your back. Our team isn’t just great at finding deals (though we love doing that!). We also give you access to our established network. We can connect you to the contractors we work with, the deals we receive, and determine the right contractors for your specific market. We can help point you in the right direction, evaluate people, and build your dream team. You’ll be able to move forward with your investment knowing you have partners that can help you succeed.
Interested in investing in Naples, Florida?
Naples Park is growing and now’s the time to get involved. At one point last year, there were only nine homes on the market – now there’s 90. There is plenty of opportunity for new investors to break into the area.
Want to learn more about Naples Park or other neighborhoods in Naples? With an experienced and confident team behind you, we can make your investment dreams come true! If you’re interested in real estate investment properties in Naples, Florida, contact Naples Relocation Experts today