Realty411 Magazine - Featuring Brandon Cobb | Page 52

What ’ s Driving Them ?
There are now many factors driving people and their cash out of coastal states and other major cities , and pulling them to other destinations . These are just some of them .
Photo by Anthony Shkraba from Pexels
Affordability
Sheer lack of affordability is one of the top factors driving out residents and capital . Even in Florida , which seemed cheap in comparison to NY and LA at the beginning of 2020 , the massive surge in migration has driven up property prices by at least 1,000 % in some areas . In Miami some builders are finding excuses to kick out pre­construction investors to be able to resell those same units at top of the market prices . Even in the most rural and cheap areas , it has become so expensive that investors are buying distressed homes , and are renting them out at top of the market rents , while leaving tenants to make the homes livable .
It ’ s not just housing prices either , it is overall cost and quality of living .
When it comes to investing , affordability is the number one factor that analysts look at to gauge where a market is in the cycle , real value , and future potential growth or decline .
Profits & Returns
In addition to these coastal cities , even international investors are looking for smarter places to invest with more value and better returns . Even in Denver , investors have been resorting to negative cash flow properties due to such high prices .
It is true rents and house prices may float down in California and New York as millions leave . Yet , they have long been too high to make sense for investors . You should never invest for negative cash flow . If you are just going to gamble , it is probably a lot more fun to go to Vegas and play the games than go through all of the work to invest , and in something which may have less odds of going up in the short term .
Real estate has taken off in a big way over the last year , not only due to the huge amount of moving activity , but also as people see the stock market and things like Bitcoin just go crazy with no real fundamentals to support them . They are running on vapors and speculation . They offer no downside protection , and rarely reliable passive income .
Anti­Investor & Anti­Business Climate Change
An extremely litigious climate , lack of physical protections for businesses , and a regulatory pattern of trying to crush businesses , entrepreneurship and investors is forcing capital flight and the movement of talent .
These are beautiful places , dear to our hearts , but it just make no sense to live and invest in them anymore . At best they just want to bleed us and our children dry financially .
Why not go somewhere you are wanted , and that wants you and your family to prosper ? You can always go back home on vacation if you can stomach it .
Safety
Personal safety , property protection , and wealth preservation are all compounding this trend .
Freedom
While many have been working from home and running fully remote businesses , even in real estate for at least 16 years , many are just waking up to the fact that they can live in the Midwest , and get a three bedroom house with a yard for a quarter of the cost in California , while still making NYC and San Fran level wages . They also no longer have to put up with lockdowns and restrictions if they choose not to .
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Image by PublicDomainPictures from Pixabay