Investment property is hot these days--that's hardly a secret. What is surprising is how many of the buyers are coming from somewhere else. Even when the buyers are local, the money may be coming from another part of the country, or even the world. Why is that happening?
Our real estate prices have been languishing in Connecticut. Our economy has lagged behind other areas. Even the new Governor of Virginia exhorted that Virginia should not become Connecticut in terms of job creation. Jobs, businesses, attitude toward business, taxes--all of these things can change. What can't change is the amount of land, or its location. That classic real estate valuation phrase--location, location, location--has never been truer than when applied to property in Connecticut. Nestled between two huge metro areas, it only makes sense that the value of what is here would rise as prices skyrocket in Metro NYC and Metro Boston.
Wouldn't it be a shame if the benefit of a run-up in prices in our region went to people from out of town? Sometimes we are more negative about our area than others are, and it's likely that this is one of those occasions. Given everything we know about the future of work, the need for a skilled workforce (where Connecticut excels), and the positivity toward business shown by the present State administration, our future fortunes look bright. And we should jump on them before others do.
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