Think about your ultimate dream house, but most importantly, visualize and try and sense what the landscape looks like, the sky, and all your outside surroundings. What would you be wearing and what would your hobbies and entertainment be?
I bet everyone that reads this pictured a sunny day with pretty flowers, growing in warm temperatures. Anyone think of gray skies or snow on the ground? Of course not.
So doesn’t it make sense that people want to live in these types of areas? You bet it does, and they especially want to live in areas where jobs are being created, not lost, and where taxes of all kinds are lower.
If this is true, which I believe it is, why would anyone want to buy investment houses in the RUST BELT? It makes absolutely no sense to buy in dying areas where the local governments are broke and continue to raise taxes, water rates and any other fees they can come up with. These areas are doomed on the long term radar map for houses rebounding in value.
Most retirees prefer to live in a warm climate and ultimately move there if they can afford to. College graduates are leaving the nest too. Once they realize the sun comes out more than 30 days a year outside of Rochester, NY – they leave. They never forget the vacation when Mom and Dad took them down to Florida over a holiday break. And job? C’mon. Large employees are leaving the heavily taxed states in the North East and operating their businesses in lower tax states with warmer climates.
When you come down to it, there is a better quality of life in warmer climates. You can be more active at all times of the year and in general, it is more cheerful than gloomy, wintery weather of the North East. That being said, why would you want to buy investment houses in these areas?
With advancements in technology and networking, you can buy a house anywhere in the country and find rehabbers and property managers. There is no question this is the ebst real estate buying opportunity of a lifetime. Virtually, every market is down, so buy in the markets that will have future growth, where real estate taxes and insurance are low, and that is not in the path of hurricanes or freezing winters.
Don’t get blindsided by your own greed or rates of returns in cheap houses in areas of the country that are losing population.