This is me asking the over 90,000 members here about their thoughts on staying local, when the investment is, by definition, long term in nature. One of the principles on which I base decisions concerning where solid opportunities might reside, is the use of ‘macro analysis’. That is, learning in detail how a specific region and/or state views various related subjects about which investors of all stripes care deeply.
Here’s an incomplete list of what I include when considering a new (to me) region.
1. How does the state and various local governments view both personal and business taxation?
2. Are they friendly or antagonistic towards investment capital?
3. Generally speaking, are people moving into or out of the state?
4. Are businesses moving in or out of the state?
5. How are landlord/tenant disputes handled in their court system? (i.e., sanctity of contract, or ignore contract?)
So here’s the question:
As a long term real estate investor, besides ‘being able to drive by’ your properties, what factor(s) convince you to keep your investment capital at ‘home’, knowing there may be more attractive markets in which to invest?
There’s no ‘wrong’ answer here. OK, let ‘er rip!