The European Investor in SW Florida – yesterday and today

Imagine SW Florida in the 70ies? Why would foreigners buy vacant land here? The local US developers wanted to make money faster, so they went all over the world, mainly Europe and sold vacant land deals, which sounded real good oversees. Lots were even sold to Hong Kong and Australia residents.

Golden Gate, Lehigh Acres, Cape Coral and Punta Gorda Isles have all the same background. Investors in these communities, with very few residents at the time, bought with a small amount down and with $50 per month for 15 years for Contract for Deed. I know, I inherited five of those Cape Coral “deals” in 1979.

Some of these foreigners came here to visit, some bought houses and some settled for the winter months, shortly after they had purchased the land. Those numbers though were insignificant. Most though never saw what they had purchased site unseen when these developments were put into action and on the local map.

When travel became less expensive and more affordable for many, more foreigners, mostly German, came to visit and vacation here. The real run started with LTU flying to Fort Myers non-stop from Duesseldorf in 1994. This flight opened new possibilities. Lehigh and Cape Coral boomed with buyers from Germany, Austria and Switzerland. Properties on Golf courses and on the water were the dream for many, unaffordable in their home countries, but affordable here.

Today SW Florida has many residing foreigners, many doing business above and beyond their just investments in real estate. The majority is German.

Now there is even a European Chamber and the GABC (German American Business Club) with a group in Naples, adding to the mix and assisting foreigners with local integration.

The interesting part is, that they come from many different countries, different backgrounds and different socio economic spheres.

They actually blend in very well as they take on any job and business, any American would take on. They buy businesses of all kinds and start new businesses of all kinds. They might buy a lawn care business for $25,000 or set up million-dollar business like Klocke at RSW. They buy income properties, restaurants, and management companies and also get involved in very large projects like Bell Tower Park and Tarpon Point with their funds.

Very recently I sold a new construction home to a German family for $135,000 and we just put a house under contract for $980,000 cash, going to Europeans.

There is another interesting development. I am working with several Germans, who sold their local properties in the last couple of years but are thinking of returning to buying property and businesses. Some want to leave Germany for good, others see opportunities here, they do not want to miss because of the recent growth development in SW Florida since 1999.

These “guests” sold at a time when the prices for real estate were starting to rise and the US Dollar was very strong. Most of them selling between 1999 and 2002, had a double profit, increased prices and a very favorable exchange rate.

Why do they come and why do they like to be here and get involved in business?

One of the major factors is the weather, which is for most just like paradise. Other reasons are a strong and stable US economy and strong US currency, which is recognized across the world. You need to know that there was and still is a European Dollar market, and Gold and Oil are still invoiced and quoted in US Dollars every day worldwide.

Many Germans do not like the recent political arena and the tax structure in their country. They want to be in a vibrant and flexible market. Germany has become too social, too regulated and overtaxed. The scope of opportunity has diminished for the entrepreneur.

Many do not need to work here, but have to be in a business to get a visa to allow them to stay here for extended times. To be able to remain in this country for more than 180 days a year, various visa qualifications encourage business investment.

Some are purely recreational, but in steadily growing numbers contribute to our vibrant and multicultural economy.

The trend of Europeans coming here as tourist and residents is growing further, LTU just added a third weekly flight to and from Duesseldorf, Thomas Cook is flying to Frankfurt once a week and LTU just announced non stop service from Fort Myers to Munich, beginning in the later fall. Adding up those 6 planeloads means that about 1,800 weekly guests, mostly out of Germany, are coming to the area.

I know they have made an impact in SW Florida and bought millions of dollars to the local economy. Keep in mind that they do not just buy residences and businesses; they also buy cars and boats, other large ticket items, good for the economy.

They spend to enjoy. Welcome!