People looking for safe and profitable investments are turning to real estate more and more to avoid the scams and scandals of Wall Street. Real estate is one of the few investments that when left on its own and purchased at near cost-to-build prices, will appreciate. Its value might diminish slightly with market fluctuations caused by market interference but ultimately, over the long term it is always worth more than what was paid for it.

With prices in Florida falling 30 to 40 percent in the last couple years, Florida real estate represents an extremely attractive opportunity. We are back to realistic prices again and many homes can be purchased for less than replacement cost. Problem is, when markets are down and at their bottoms people tend to sit on the fence until a rebound and then they kick themselves they didn’t buy sooner. Same holds true near the top, people are reluctant to sell because they think prices will go higher- as many did in the last real estate run up… And we know how that ended up. Being able to purchase a home below replacement cost is a very rare opportunity that only the most savvy of real estate investors understand and take full advantage of and that is why such a large majority of sales in the Sarasota area are being completed by investors.

What do they know and why are they buying so feverishly at the moment?

One reason that real estate in Florida is such a good long term investment is that people continue to move there either permanently or live there on a semi-permanent basis. Many people that live in a colder climate prefer to have a winter home in Florida where they can escape the harsh weather. Profitable real estate investing depends on a large population and wealth, two things that Florida has in great measure.

Florida is unique among all the fifty states, not only for its sun-kissed climate but its attraction to tourists all over the world. Many Europeans own homes in Florida. There are more than 40,000 estimated owners of Real estate that are from the UK alone. All these visitors and warm-weather seekers means that Florida’s infrastructure is generally kept in good repair and construction of shopping malls, hotels and other accommodations rarely stops. The economy of Florida keeps chugging along steadily, unlike other states that don’t have the financial advantages of tourism. There will always be people who want to visit the beaches and cultural attractions of the state, insuring that the economy fares better than the average state’s even in hard times.

Owning real estate in Florida, as an investment or for your personal residence, gives you a sound financial base no matter if you have great wealth or are an average hard-working citizen. One of the reasons for this is the equity you build when you buy a property. Equity is the difference between the balance of your mortgage and the value of your property. In Florida, equity has always built fairly quickly during normal periods of growth. There aren’t many investments that can claim the security of bricks and mortar.

There are endless possibilities if you choose to buy real estate in Florida. You can buy a condominium in or areas largest city, Sarasota, and live in comfort without yard maintenance or fighting the traffic getting to work every day. You may want to move to a more Key West style area such as Anna Maria Island and enjoy the beauty of tall pines and fresh sea breezes. Perhaps you enjoy small town living; Areas like Venice, North Port and Port Charlotte are warm and charming and contain all the big city conveniences and shopping.

You have a lot of different types of real estate you to choose from in the Sarasota area as well. Condos, townhouses, single family homes and multiple family homes are all available in every price range imaginable. The architecture is as varied as the people and includes ranch style homes, colonial, plantation style, Southwestern adobe types, and charming French, Spanish, and Italian styles.

Florida lifestyles encompass just about anything you can think of. You may want to buy a property in a master-planned community with amenities or a more traditional neighborhood in the suburbs. You can buy real estate in a retirement community or one of the many upscale urban developments close to the heart of the city you choose. And let’s not forget the beaches, 95% of Florida’s beaches have not seen any oil from the spill and our own Siesta Key beach sand is still as white as snow!

As a result of the price drop that many believe was over-done, some economists expect real estate in Florida to gain between 50-70% in value in the next five years in the “hotter” areas such as Sarasota and Manatee counties and their barrier islands of Casey Key, Siesta Key, Lido Key, Longboat Key and Anna Maria Island.

Purchasing real estate in these market conditions is a great long term investment but buying real estate in Florida in this market is probably one of the wisest moves one could make. Why not enjoy all your investment has to offer? Not only is Sarasota Florida a beautiful state with good weather year round, it has a lot to offer culturally. While living on the creative coast You will never be far from museums, symphonies, festivals, and other cultural attractions no matter which part of Sarasota or Manatee county you live in. Add in the many lakes, streams and woodlands found inland and you have a virtual paradise for all ages.

Buying real estate in Florida is not only a good move financially but the first step to a lifestyle that most people only dream of.

With the housing market still bouncing on the lows and a lot of money sitting in qualified retirement plans, perhaps you are wondering if you can use your IRA to invest in Sarasota real estate. This article my enlighten you to some investing strategies you may wish to consider if you wish to take advantage of this depressed real estate market for future gain.

During the “good times” a couple years ago, many people took advantage of tax shelters and matching contributions by employers to their retirement accounts. With the stock market recovering nicely this past year perhaps it is time to take a little money off the table and put it into bricks and mortar.

If you want to use money from your employer related qualified plan, you need to request your employer to roll it over (tax-free) directly into your IRA. Then you will need to decide how you want to allocate that money. Before you can purchase real estate with it, you will need to transfer the funds in your IRA to a self-directed IRA.

There are a few things you need to be aware of with a self-managed IRA as some transactions are prohibited. Transactions such as buying stock from a company you own or have interest in for the sole purpose of selling it to sell it back to yourself, or, to lend or borrow money from yourself, or, to invest in interests with “friends” or family members. Logic dictates these are all prohibited IRA investing strategies and transactions when using IRA proceeds.

When investing in real estate, you can only use it to your own advantage when you take an “in-kind” distribution of the real estate held in your IRA for your benefit.

As you are aware, real estate can be a very tax advantageous investment. Investing in real estate for its income and appreciation potential will give you deductions created from the expenses of maintaining the property. Interest payments and depreciation are also fantastic tax breaks. If the deductions exceed the rental income you can use these deductions to offset other investment or employment income.

However, real estate held in an IRA will loose those tax advantages and these investments will have your typical IRA tax characteristics. For a deductible IRA, these characteristics include deductible contributions and tax-deferred growth of its yearly earnings BUT any distributions are subjected to income taxation and for some, this can be quite severe. Once you hit the age of 70 and a half, you must also take minimum retired distributions that you will be paying taxes on.

Roth IRA’s give you tax free yearly earnings and distributions but your contributions to a Roth IRA are taxed as income. This can also be a very expensive initial proposition.

It is very important that you keep in mind that investing in real estate using an IRA, self directed or not, can be a very expensive proposition either going in to the investment, or coming out of it, but there are some strategies and obvious potential for gains that make it worthwhile to jump over a few hurdles.

Here are 3 strategies to consider:

Purchasing Real Estate outside your IRA.

Using distributions from your IRA to purchase real estate will allow you to invest for your benefit, meaning you can use this money to purchase income producing property or a second home. The gains in this market could be substantial and far outweigh the tax liability incurred with the distribution.

Be sure to arrange these investments around deductions you can receive for mortgage interest, depreciation, and other expenses incurred maintaining the property. This allows you to use these tax advantages to offset taxes paid.

Real Estate inside your IRA

If you decide to buy real estate within your self-directed IRA, you can consider using a deductible IRA or a Roth IRA. Remember, you will lose any real estate tax advantages with those investments.

What you are looking for is two big investment benefits of real estate when investing within an IRA:

Higher yearly tax differed earnings (deductible IRA) or tax free (Roth IRA) and high appreciation – that will more than offset the distribution income tax (deductible IRA) or the initial rollover income tax into a Roth IRA.

I would opt for using a Roth IRA rather than the deductible IRA. Although you’re getting hit by a lot of income tax to fund it, you’re presumably buying depressed real estate that will appreciate substantially over years. Also, all rental income and future appreciation is tax free and you’ll never have to worry about making MRD’s at the age of 70 and a half.

When you make an in-kind distribution of your investment real estate that you intend to make available for your use (second home), your bias in it will be equal to the value associated with the income tax you paid for it. (As if you purchased it with employment income rather than investment)

Of course these recommendations are only to spur some thought on your behalf. To fully understand the entire pro’s and cons of investing IRA wealth in this current real estate market should be discussed with a financial advisor competent to give you the best advice for your situation but as an “insider” I see some amazing deals with the potential fantastic gains that could far surpass the initial tax liability the funds to purchase these investments will incur.

Prestigious Past Defines Community

While the beginnings of the region were humble, by the early 1900s Sarasota welcomed a steady flow of prestigious residents who made a mark on the development of Sarasota as a city and cultural center, and left a legacy of historic sites that continue to impress locals and visitors alike. These wealthy entrepreneurs helped define the personality of the region and usher in an era of wealth and prosperity that continues to this day.

Among the early settlers was John Hamilton Gillespie, a Scottish lawyer and aristocrat who is credited with building the first golf course in America. When the village of Sarasota became a town under state guidelines in 1902, Gillespie was named the first mayor. He also built the DeSoto Hotel on Main Street, which attracted both tourists and prospective investors. Progress such as this paved the way for other land developers and millionaires, who began mapping out their own business legacies in ranching, farming, and city planning.

Among the first was Bertha Honoré Palmer, an early 20th Century socialite and the widow of multimillion dollar estate developer Potter Palmer, whom she married in 1871. Her association with Florida began in 1910, eight years after his death, when she purchased more than 80,000 acres including Manatee County. She added an additional 19,000 acres in 1914 to create “River Hills Ranch” hunting preserve, which now is Temple Terrace, Fla., near Tampa. Most notably, Palmer also bought a large tract of land that was turned into Myakka River State Park following her death in 1918. The river itself traverses 58 square miles of wetlands, prairies, hammocks, and woodlands, and from 1934 to 1941, the park was developed by the Civilian Conservation Corps with assistance from the National Park Service and Florida Park Service, according to the Florida Online Park Guide. Today, it is one of Florida’s oldest and biggest parks, consisting of 37,000 acres. While Palmer owned the property it was a functioning 30,000-acre cattle ranch called Meadowsweet Pastures, which is well known today for helping to revolutionize large-scale ranching practices within the state.

In addition to becoming the top land owner in and around Sarasota in the early 1900s, Palmer was one of the first aristocrats to promote the city as a winter haven for the rich and famous, especially as an alternate to foreign destinations at the onset of World War I. She established her own enclave just north of Spanish Point, the homestead founded by the Webb family, and this home base helped establish Sarasota as one of the most fashionable Florida vacation destinations. According to the Sarasota History Alive, she acquired Lawrence Jones’ two-story house called The Oaks on Little Sarasota Bay, and hired the Chicago architect Thomas Reed Martin, who moved to Sarasota, to add rooms and columns to the property and create formal gardens, walkways, and ponds.

Palmer’s sons Honoré and Potter carried on the family legacy by continuing to acquire and develop land parcels. In 1922, the brothers planted what was then known as the Hyde Park Citrus Groves, which eventually covered more than 1,200 acres. Today, the area is South Gate in Sarasota. In 1923, they helped to form the Sarasota-Fruitville drainage district, 8,000-plus acres that were opened up for cultivation. The land was designated as the Palmer Farms and Experimental Station and was created by removing water from a large, historic slough and dredging a straight drainage canal through the bed of Phillippi Creek. This dried out approximately 26,000 acres, and in total more than 40 square miles and 50 linear miles of canals were included in the project, which cost $750,000, according to the Sarasota History Alive.

Today, Bertha Palmer’s influence still is visible in the Palmer Ranch community, which is set on 10,000 acres of the original land purchase. Today it is the largest master planned community in Sarasota with more than 20 subdivisions. Additionally, many of the roads and thoroughfares in Sarasota’s existing communities still carry her designations, such as Honoré, Lockwood Ridge, Tuttle, Webber, and McIntosh.

While Palmer was busy undertaking ranching and farming endeavors, Owen Burns, who moved to Sarasota prior to her, became the largest landowner within the city limits. He also had many other ventures including banking; constructing bridges, landmark buildings, and mansions; and establishing Burns Court, a downtown district designed to attract commercial businesses and tourists. Additionally, in 1925 he built the El Vernona Hotel, which he named after his wife. He later was forced to sell the hotel to his former partner John Ringling at a fraction of its value following a land boom crash that ravaged his finances. Ironically, Burn’s financial demise was due in part to Ringling’s failure to uphold development agreements for the barrier islands.

In addition to being Burn’s partner, John Ringling is Sarasota’s most well known patron of the arts. His impact on the development of cultural landmarks and his high profile as a circus magnate also helped put Sarasota in the publicity limelight, which contributed to building the city’s prestigious reputation as a refined cultural living center and landed it the moniker “Florida’s Cultural Coast.” In 1927, he moved the winter headquarters of the Ringling Brothers and Barnum & Bailey Circus to Sarasota, where he and his wife Mable had been spending the season since 1909. In 1926, they completed a 30-room Venetian Gothic mansion named Cà d’Zan (House of John) that was designed by New York architect Dwight James Baum. The couple also built the John & Mable Ringling Museum of Art, which houses an extraordinary collection of work by Peter Paul Rubens and other 17th Century Italian and Flemish masters. The museum, which was designed by the architect John H. Phillips in 1927, officially opened in October 1931.

Ringling also was an entrepreneur and aggressive businessman who had grand plans for Sarasota’s outlying islands. He formed Ringling Isles Estates with Burns, who also was responsible for building the John Ringling Bridge and using the dredge to create Bird Key, an island between St. Armands Key and the mainland that is now an oasis of posh residences. Ringling purchased St. Armands Key in 1923 as an uninhabited 150-acre island. Burns developed the community, and well-known landscape architect John J. Watson designed the layout, which included a central circle park named for President Warren Harding (St. Armands Circle), boulevards, and medians. The community officially opened in 1928 when the bridge to the mainland was completed. According to Sarasota History Alive, Harding Circle was placed on the National Register of Historic Places in January of 2001 for its unique approach to community planning and land development.

Despite the great strides made in developing St. Armands Key, both businessmen were greatly impacted by financial difficulties that spread through Florida leading up to the Great Depression. Just prior to the stock market crash, Ringling invested in new circus ventures that were not profitable, and in the wake he was forced to abandon many projects, including an exclusive hotel on one of the barrier islands. At the time of his death in 1936, Ringling was almost bankrupt and he willed most of his estate and art collection to the state.

John’s brother Charles Ringling also was instrumental in the evolution of Sarasota. A land developer and bank founder, he built the Sarasota Terrace Hotel downtown in the Chicago style of architecture and donated adjacent land for the county seat. Ringling Boulevard was named in his honor, and the street crosses Washington Boulevard at the location of the hotel. Additionally, he and his wife Edith built a bay front residence that was completed just before his death in 1926. The home, which became known as The Edith Ringling Estate, is now at the center of the New College of Florida campus.

Significant Sites Dot Landscape

Currently, there are more than 60 historically significant sites designated in Sarasota, which are listed online at Sarasota History Alive. These unique commercial and residential buildings are ever-present reminders of Sarasota’s far-reaching architectural heritage. In addition to Ringling’s Cà dˈZan, among the notable estates are the houses at Marie Selby Botanical Gardens and the Marie and William (Bill) Selby purchased seven acres of land adjoining Sarasota Bay and Hudson Bayou in the early 1920s and built a two-story Spanish style home among the lush banyan trees on the property. Bill was a partner with his father in the Selby Oil and Gas Company and Marie was an accomplished musician. They both shared a love of the outdoors Marie was an avid gardener who designed the property’s landscaping and prominent rose garden. Marie passed away in 1971 and willed the property to the community as a botanical garden, which was opened to the public in 1975. Since that time the property has grown from seven acres to nearly 13 acres, and there are more than 20,000 plants on display in eight greenhouses.

The Italian Renaissance style Edson Keith Mansion was designed by the Chicago-based architectural firm of Otis and Clark for Edson and Nettie Keener Keith, who were members of the “Chicago Colony,” wealthy Midwesterners who spent at least part of the year in southwest Florida. The couple purchased 60 acres on the shores of Phillippe Creek in 1916 and moved from Chicago to live in Sarasota year-round. The home later was sold to another Chicagoan, Mae Hansen Prodie, who is known for creating the Barbie doll wardrobe concept. Her husband Charlie Prodie, a retired executive of Walgreen’s, ran the estate as a restaurant and inn. After Mae’s death in 1986, Sarasota County purchased the estate for $5.2 million and refurbished it for public use.

Architectural gems such as this dot the landscape of Sarasota and have made the city glimmer over the years. And the magnificent homes of the early 20th Century now stand stately among more recent buildings that have helped to grow the local real estate inventory and provide a wide variety of luxury housing options. The northern shore of the Sarasota Bay is a perfect example, as many of the historic residences built there during the 1920s boom have survived. The area originally was platted in 1895 as Shell Beach by Mary Louise and Charles N. Thompson, who later sold a large portion of the land to John and Mable Ringling for their winter retreat. The same type of juxtaposition can be found in the historic Indian Beach Sapphire Shores neighborhood that grew immediately to the south. This community, which contained a spattering of pioneer homes, became a hub for accomplished businessmen and others who wished to associate with the wealthiest upper crust of Sarasota in the 1920s.

These old-world inspired properties now are interspersed with even more recent designs, such as those of the Sarasota School of Architecture. Although many of these structures were lost over the past few decades because they did not qualify for historic preservation, there still are some excellent examples of this style, which combines characteristics of Bauhaus and the concepts of Frank Lloyd Wright. Paul Rudolph was a prominent Sarasota figure in this post-war architectural movement, which also is know by the name Sarasota Modern. One of the best examples left is Rudolph’s Umbrella House in Lido Shores, which once was an exclusive subdivision designed entirely in the Sarasota School of Architecture style.

As you can see from this small snapshot of Sarasota’s community history, there is a fantastic foundation of great developers, land owners, and architects behind the modern-day masterpiece that this city has become. Whether you chose to reside in a downtown high-rise, a master planned golf community, or a beach estate on one of the Keys, calling Sarasota home allows you to weave your own thread in this wonderful tapestry of culture and resort lifestyle living.

Sarasota, Florida, has a unique lifestyle that attracts people from all over the U.S. who are drawn to the area’s favorable climate and appealing real estate. Indeed, there’s always something to smile about when you call Sarasota home. The city and its surrounding towns, which include Venice and Bradenton, are a Mecca for residents with sophisticated tastes, cultured backgrounds, and diverse interests. The energy of the region can’t help but put you in good spirits, and the multifaceted market will make your home buying or selling experience a pleasure, whether you are a part-time resident or a year-round dweller. Behind a beautiful tropical landscape is a fascinating history. It weaves together a unique community fabric that blankets neighboring Sarasota and Manatee Counties in intriguing charm, making them among the most desirable places to live in Florida.

Sarasota is the crown jewel of the state’s southwest coast. From its crushed quartz crystal beach on Siesta Key to its rich heritage and interesting founders, the city has become a luxurious haven that offers a wide range of distinctive lifestyle choices and communities. Surrounded with beautiful barrier islands including Lido Key, St. Armands Key, Longboat Key, and Siesta Key, Sarasota’s current footprint is 26 square miles and the metro area population is around 673,035, with an estimated 52,488 living inside the city limits, according to 2007 statistics from the U.S. Census Bureau.

The city design was enhanced in 1927 by professional planner John Nolan (who also is noted for planning the layout of Venice) to follow the arch of the bay front. The city hall was located in an arcade at the end of Main Street at the waterfront, and it connected with the city dock. This central hub design, which became unmanageable with an increasing number of automobiles, was cast off in the 1960s with the demolition of city hall and reengineering of the streets to handle more traffic flow. New Urbanism concepts were adopted in the wake of the changes, which focused on developing a pedestrian-friendly city. Today, downtown Sarasota is an oasis of quaint shopping and restaurants centered on Main Street, which leads to a scenic marina overlooking the bay and the John Ringling Bridge. Dotted with luxurious condos and quaint historic neighborhoods such as Laurel Park, the heart of the city gives way to some of the best planned communities on the Gulf Coast of Florida, including Palmer Ranch to the south and Lakewood Ranch to the northeast.

Pioneers Plant Humble Roots

Far removed from today’s exclusive golf course neighborhoods, bay front properties, and beach estates, Sarasota’s community foundation stretches all the way back to the late 1800s, when the “modern town” was promoted in Scotland by the Florida Mortgage and Investment Company, according the Sarasota Convention and Visitor’s Bureau. While the town was little more than a frontier camp, it attracted many families looking for affordable living and fertile land to grow citrus.

William Whitaker was Sarasota’s first documented pioneer of European ancestry. Born in Savannah, Georgia, in 1821, he made his home on Yellow Bluffs, which is north of Eleventh Street, and began selling dried fish to traders who worked the coast. He began a cattle business in 1847 and then married Mary Jane Wyatt, whose family settled the village of Manatee. Together they had 11 children and weathered a harsh life, which included surviving an Indian raid that devastated their home.

They were later joined by John Webb and his family, who moved from Utica, New York, to Florida in 1867. First landing in Key West, they were directed to Sarasota by a Spanish trader who informed them of a high bluff ideal for homesteading. Upon arriving, the Webbs met Whitaker, who knew the exact spot they were seeking. It was located several miles south on Little Sarasota Bay. There they established a homestead and called it Spanish Point in honor of the trader, and they began growing citrus, sugar cane, and vegetables. The family built a packing house to prepare the produce and fruits for market, as well as a 10-ton schooner to transport the goods. John Webb became a postmaster in 1881 and selected the name Osprey for the town, which today houses Historic Spanish Point, a 30-acre historical, archaeological, and environmental museum.