Rural Alabama here. Out of staters have really screwed up the market here. 2 years ago I could look at a property and tell you exactly what the market value is. Now? I really have no idea. What was a 100k property, now brings 200k. Or 200k and brings 350. Sounds like a great deal if you live in CA or NY or IL. But it has priced out locals in our poor ass county.
Our area has been named before as the poorest in the nation.
So why in the Hell would these folks want to live here? Don’t get me wrong. Lived here all my life and I don’t want to go anywhere. But these liberal idiots need to stay away and leave us alone!
Most of this “appreciation” isn’t appreciation, it’s just inflation. The dollars being used aren’t worth what they used to be.
On the other hand, one of real estate best qualities is that over time it outruns inflation, or least is has in the 45 years I’ve been investing in it.
Land does it best, but principal residences are very good too due to the no-tax on profits below $550k.
Money in the bank is not an investment, a bank is a parking garage for money, you pay to park your money there. The bank never pays more than the inflation rate. You have to risk something to make a profit.
They say the same about the people here in TN. We are all uneducated, unhealthy, welfare loving obese hicks, according to them, but they come here in droves. The good thing is that I haven’t met a lot that brought their CA ways with them. Most that I have met are truly escaping and leaving that behind them. I only met one that I almost told to go back where she came from if she hated the South so much.
The funny thing is, I know very few people that actually fit their descriptions of us. The ones I do know of all live in low-income government housing in the big democrat run cities like Memphis.