Stay close or take the leap?

Question

Hey guys,

Coming back to you with a personal question. Would you travel across the country if it was a good investment or would you rent in the location first? Or, would you drop the idea and stay close to your hometown, even though the properties are not what you want nor is the market friendly?

I've gotten advice from multiple sources, each saying their own pros and cons. I still want to reach for the dream, but it is far and it is risky.

Let me know what you think!

Nate Sanow · Answer

At 19 I packed up and was away from home for a long time. I now live in my hometown of sorts - the last place my parents moved to anyway. The years away helped me better appreciate what I have here now, no regrets. Life is short but also long. It’s easy to move back. If your heart is there, do it.

Jon Kelly · Answer

@Eduardo Godoy which location will make you work harder? Pick that one.

Theresa Harris · Answer

Do you have job prospects in the other location?  It doesn't have to be across the country and once you are done-will you have more money leftover (ie if the pay is higher, but so are living expenses they cancel each other out) and a better quality of life?  I've moved around a lot and it can be hard.  If you do move, at first I wouldn't buy unless you plan on keeping it as a long distance rental (which you'd need a manager for).  Rent for a year to see if you like it and get to know the place, especially as you are 19 and have never lived away from home.

A good option is to move a little ways away from home if you can find a job there and housing is affordable.

Alecia Loveless · Answer

@Eduardo Godoy I moved across the country early in life and started over and the jumped several states twice more before settling down and planting roots in the community I have now lived in for 25 years. It was one of the wisest decisions of my life.

If it was entirely up to me, I would move again now, or in the near future after doing more research to a more investment friendly location. For personal reason my spouse is opposed to this so either I continue to research OOS investing and find a more affordable option for investing in, or I continue in my local market that I am familiar with which although is landlord friendly continues to be less desirable in terms of cost of entry and over all cash flow.

I’d consider moving especially If you have job prospects in the new community, and I’d certainly recommend researching it well before considering moving there in terms of life style, outdoor activities, night life, schools if you have or may have children, travel accessibility (highways, airports) sports teams if this is important to you, etc. All of this is important. If you will be changing job types you may be hindered in your ability to acquire a mortgage for 2 years while you establish yourself in your new career field.

Things to think about.

Mason Jeffries · Answer

The benefits of staying in your hometown are knowledge of the market and resources that you probably already have. People you already know. Leaving your hometown requires some degree of courage and can actually help you grow as a person. Successfully starting over in a new market area is a boost of confidence in my opinion. Also, investing in a market does not require you to move there, unless of course, that is part of your strategy. As far as risk goes, put together a risk management plan for yourself. What is the risk and how can you mitigate it?I took a leap and moved across country because of the lower purchase prices and opportunity in that area. However, we had secure jobs lined up and had predetermined that our quality of life would not be compromised by moving. We also took a vacation to the potential area to soak in the reality of moving there. Worked well for us.

Stay close or take the leap?

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