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Updated over 1 year ago, 03/10/2023
The BIG problem with buying/selling houses in the suburbs!
I'm a 19-year-old college student in Fort Lauderdale, Florida. I recently talked to a doctor who is aspiring to live in Manhattan, New York about real estate.
When I asked him about how I wanted to start investing in real estate in places like Texas, Florida, or Tennessee, he told me that there are lots of problems with investing in these non-cities. Instead, I should strive to go to Manhattan after becoming a dentist. Here are some things he mentioned that make investing not possible in these non-city states:
1. Houses NEVER sell in the suburbs. You have to wait 2 years for houses to sell at the very least.
2. Houses don't appreciate. You will pay a lot of property tax, but your house won't appreciate that much.
3. It's better to invest in a condo in Manhattan, New York than get several houses in the non-cities. (Less work for good condos in Manhattan)
4. If the contractors and the workers get injured when renovating or flipping a house, I will be responsible for all their medical bills. Yikes!
5. It takes too long to renovate houses. (More than 1 year)
6. You won't get a lot of mortgages approved, and will hit your limit.
7. Stuff breaks too much in traditional houses, and the landlord usually pays for electricity, water, garden maintenance, etc. Condos in Manhattan sell like hotcakes.
In sum, he told me why on earth would I go to the suburbs for real estate when I can just buy a condo in New York, have it appreciate a whole lot, and sell it for a way higher price? Although I would be paying more tax in New York, houses appreciate a hell of a lot faster and sell faster. If I invest in the suburbs, I will end up with non-appreciating houses in Texas or Florida, have to fix things all the time, and never be able to sell a house quickly enough.
I read a few books by Brandon Turner, Josh Dorkin, David Greene, JL Collins, and other authors, and it seems like a lot of people I know make a lot of money by investing in the suburbs, but does anyone have the information they would like to share on his views?
Keep in mind that this person I talked to believes that the only 'city' in the US is Manhattan or perhaps Los Angels in California. He thinks that other states like Florida, Texas, and Virginia are all the countryside with not a lot of big buildings where things are very very far apart. He made me think a little hesitant about pursuing real estate investing in the Suburbs, and I would like to know more about this situation!
I'm open to any feedback or criticism!