Written By — David Shafer
I learned awhile back that the worst thing you can do is to follow the crowd. This is even more important to remember when it comes to your financial life. But there is a fundamental tension between following the crowd and going your own way. That is what I have been struggling with for the last couple years. I have lived primarily in Florida for the last 15 years. 10 ½ years ago we bought a home here. 12 years ago I changed my financial philosophy away from the crowd [sold my mutual funds and started a very different strategy].
Where am I going with all this? Well, we have decided to move full-time to our New Hampshire home. There are several reasons for this, many of which are particular to our family circumstances. But, there is one reason that I want to talk about. Since WWII, Florida has seen a mass migration of folks from “up north” [northern states] moving here. The migration has been steady for decades. Well, starting in 2010, for the first time since WWII, there were more people moving out of the state than moving into the state. The recession has taken its toll, with construction jobs leading the downturn [12% unemployment, which is actually down from its peak]. I know Florida well enough to know what this all means. Real Estate values will stall at current prices for a long time. For us, we will still make a profit on our home.
Why not rent it out? Well, we have several issues in Florida; taxes and insurance. Insurance prices have tripled. Taxes are so screwed up here because of the homestead law, which causes investment property to be taxed at incredibly high rates to overcome the fact that folks who homestead pay so little.
Loss of population, high property taxes [for investment and commercial property], and an insurance nightmare add up to problems in my book. The crowd has told us it is crazy to sell now. The crowd has said, wait the real estate market will come back. Well the crowd is wrong IMHO.
I have read BawldGuy’s posts on the problems with staying local to San Diego (and markets like it) with your RE investments. My real estate dollars will be put into a place that will get a higher rate of return than leaving them in Florida Real Estate. Fortunately, I have prepared for this day. I own other properties, have my investments, my EIUL, etc. and all that planning has made it possible to pull up stakes here and make the move.
What’s the point of this post? Listen to BawldGuy. Don’t be afraid to move your capital to more lucrative areas. Have a plan that allows for changes. Understand that flexibility is key. Be willing to move against the crowd and most of all never stop thinking and reading about your [financial] life.
Related posts:
- What Gettin’ Outa Dodge Means To A Real Live San Diego Real Estate Investor
- Last Night I Was Interviewed About My New Business Model AND Gettin’ Outa Dodge
- Tornados Are Local — So Are Down Real Estate Markets — Profit From It
- Real Estate Investors — If Duplexes Are More Than $400K In Your Area? Get Outa Dodge Now
- #1 Reason California Real Estate Investors Should Move Their Equities Outa Dodge
About David Shafer
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