SimplyNapales Real Estate Community News & Blog.

Oct. 9, 2018

Should a buyer avoid CDD communities?

Are CDD Community Development Districts expensive to live in?

Many buyers unfamiliar with the concept of Community Development Districts, such as Naples Reserve or Winding Cypress, often think that CDD fees are just another way to increase property taxes without any benefit to the owner. This is a valid concern of many buyers new to these communities and wondering what is a CDD, why does it exist and is there any benefit to a buyer or should they avoid these types of communities?.

There have been many articles and posts written detailing the lengthy and legal technicalities of originating, operating and maintaining a community development districts. So this post is simply answering the question, "What is a CDD community and should a buyer stay clear of purchasing a property in one" because of the additional fees added to the property tax bill?

What is a CDD community?

In very simple terms, it's a special purpose unit of local government that is set up to develop, manage, fund and maintain parts of a community, known as a Community Development District. Examples of CDD communities in the South Naples Real Estate area are Naples reserve Community development district, Esplanade at Hacienda Lakes, Winding Cypress.

Why does it exist?

CDD community is where a builder/developer of a new construction community  has decide to not use or doesn't have sufficient funds of their own for building part of the the community and infrastructure. By creating a CDD community, funding can be raised through the sale of bonds. These funds are can then be used to build parts of the community or infrastructure needed. (Which could be roads, lighting, storm water drainage, clubhouse, etc.) The cost of this funding is then paid for over a period of time, usually between 20-30 yrs, by the property owners living and using the community infrastructure. The CDD fee is added to the property tax bill.

What's the benefit of a CDD community, if any?

A community development district is able to provide improved or upgraded community amenities or infrastructure that may not have been possible without the CDD funding. In some cases it could be the difference between a community having or not having sufficient storm water drainage to eliminating flooding or a resort style pool, etc.  

Should a buyer avoid a CDD community?

The simple answer is no and here's why.

If the developer had used all their own funds or taken out a short term loan to pay for all this community development, the developer would need to recover that cost or repay the loans before the community is completed by higher sales prices of all homes sold. This could increase the home prices by many thousands of dollars and make them too expensive for the market, yet buyers want these community improvements.

If they fund part of this community development cost separately, via CDD bonds which are paid for over say 30 years and not added as a one time big increase onto the home price, then the initial cost of the property is often less and more affordable to many buyers while still having the community facilities they desire. These buyers in a CDD community also the advantage of paying this cost over say 30 years rather than having to pay for it in the initial home price and seeing as few people stay in a home for more than say 7 years, when they sell the home they have only paid these costs for years they used the community facilities, in this example 7 years, and the remaining CDD balance is paid by the new owners of the home. 

So a way to look at a CDD is to think of it as a portion of the community and home cost that is not paid for in full at closing, so you get a lower cost when you buy but you pay it back only in the years you own the home and when you sell the home, the new home owner then pays the rest.

Aug. 12, 2018

Winding Cypress Prepares Ground for Phase 3

Winding Cypress Community breaks ground for phase 3

DiVosta, the builders of Winding Cypress community, began preparing ground for phase 3, the final build within the community development. Its expected that the remaining lots available in phase 2 will be all but sold by the end of the year and the release of the phase 3 lots will be around either the end of 2018 or the beginning of 2019.

Sales in Winding Cypress have been strong throughout 2017-2018 with the expectation that all the attached villas will have sold by the end of 2018 leaving only a few remaining single family home lots in phase 2 to be sold along with the newly prepared single family home lots in phase 3. There will be no villas in phase 3, only single family home.

Winding Cypress is one of the newest resort style communities in south east Naples, having low community fees with high quality facilities

 

Posted in Winding Cypress
July 5, 2018

Which South Naples community has the most space?

Winding Cypress has lots of space.

Collier county is the largest county in Florida, consisting of 1.5 million acres. 70% of this is preserve with only 25% zoned for building. The population is around 365,000 according to recent data from Collier planning, with an additional 75,000 resident and visitors during peak season. 

However, even though this is only half the population of adjoining Lee County, some communities can still feel a little cramped with very little space in the community and between homes.

So, using Collier County data on the number of residential units per community size in acres, here's a little comparison of a few new construction non-golf communities being built in the South Naples area.   

  • Winding Cypress
    • 1,928 Acres.    733 Planned homes. = 2.63 Acres for each home built
  • Isles of Collier Reserve.
    • 2,416 Acres. 1,610 Planned homes. = 1.5 Acres for each home built
  • Hacienda Lakes.
    • 2,262 Acres. 1,679 Planned homes = 1.3 Acres for each home built
  • Naples Reserve.
    •    688 Acres. 1,140 Planned homes = 0.6 Acres for each home built

So, even though typically the distance between homes sites are around the same irrespective of the community, and the lots are set for the home size being built on them, you can see from above that the Winding Cypress community has more space and designated preserve area than the other competing communities on the list above. Of course, that's not to say the other communities are not nice or peaceful because the builders are going to great lengths to make all these resort style communities appealing to all and there are many other factors to consider than homes per acre when buying a home. But if space and natural preserves is important you, then take a look at Winding Cypress, you might be pleasantly surprised.

 

May 17, 2018

Winding Cypress offers design incentive to buyers

With the busy winter season having come to an end in April, the Divosta brand of Pulte Homes is offering design incentives to buyers of new construction homes in their Winding Cypress community, which is located in South East Naples.

At this time, they are offering 50% off design options up to $15K on their attached Villas Series, the Serenity and Cressida floor plans.They are also offering 50% off design option up to $20K on their Classic series single family home and also 50% off design option up to $20K on their Estate series single family homes. 

These incentives include the floor plan options and upgrades but do not include the pools.

However, they do have some separate incentives on standard pools on a few select non-water/non-preserve lots remaining in their phase 2 release. Call Steve Barker on 239-293-4327 to discuss the latest incentives and pricing.

May 16, 2018

Why buy a home in South Naples Florida?

Why is owning a homes South Naples Florida so desirable

South Naples has so much to offer the resident and visitor alike, no matter what lifestyle you are searching for. From the diversity of its famous restaurants to the abundant shopping on 5th Ave, 3rd Street, Waterside and Coastland. From the sporting opportunities for endless golf, tennis, pickleball and sports fishing to the leisurely enjoyment of miles of sandy beaches for bathing, swimming, kayaking and boating. There are some wonderful developing communities offering great opportunities to own South Naples real estate too, like The Isles of Collier PreserveWinding Cypress and Naples Reserve which are attracting so second home owners and new permanent resident to the area

Florida has almost 365 days of sunshine, miles of wonderful sandy beaches, endless golf courses and superb restaurants where residents and visitors can experience a different menu every day of the year. So, there is no wonder south Naples is so attractive to buyers from North America, Canada, U.K. and Europe, all wanting to own their own piece of Naples real estate and escape their cold winters. However, in the last few years, it's also become a popular year round destination for people wishing to relocate and work from home too. Living in South Naples Florida is like being on a permanent vacation and the area has so much to offer visitors and residents alike.

Recreation and an active life style is available in many forms. There is an abundance of State and regional parks in the area, such as Delnor Wiggins State Park, Rookery Bay and Collier Seminole State Park. With miles of bike lanes, cycling is very popular, but golfing is by far the largest participation sport here and it’s truly a golfer’s paradise with many private, semi-private and public club courses to experience. They cater for all levels of skill and facilities to suit all pockets. Many have reciprocal agreements, so you can visit, play and dine at various other clubs too.  

Medical facilities in the area have expanded greatly in recent years with the Physicians Regional Medical center, NCH Healthcare and Baker hospital all within easy reach. There are also many walk-in and emergency clinics, Doctors surgeries and dental facilities.

Education opportunities are growing in the area too, with both public and private schools for all ages, such as Florida Southwestern State Collage and Florida Gulf Coast University 

Getting around is a breeze with the convenience of 41, 951 and I75, you can easily get to the beach generally within 15 mins, 5th Ave dining in 15 mins, Marco Island in 20 min, North Naples within 25 min, Bonita Springs in 30 min, Southwest Florida International airport in just 40 mins and Fort Lauderdale and Miami in under a 2 hour drive.

The South Naples area has much less urban community development space available, with many areas designated to remain as natural preserves, such as the Rookery Bay area and west of Naples Reserve. Then there are large preserve areas being left inside some of the new communities such as Winding Cypress and Fiddler's Creek, while others border with preserves, such Artesia and The Isles Of Collier, which is adjacent to Rookery Bay and allows Kayaks to navigate through its lakes into Rookery Bay itself. You can still drive from Lely resort to the fine dining and shops of 5th Ave in around 15-20 mins and then be on the beach in just a couple of minutes more.