State of Similarities and Differences
What does the State of Utah have in common with the States of Michigan, Florida, Arizona, Nevada, and California?
In regards to real estate, not a heck of a lot. Because, with the exception of Utah, the other states noted are in a subprime crisis that has seriously affected their housing markets. While the State of Michigan is not a sunshine state like the others, Michigan’s crisis has been impacted largely by the job market. The other states, with the exception of Utah, have experienced a subprime crisis affecting their housing that has been largely impacted by speculation and greed. Investors wanting to make a quick buck by flipping new construction investment properties mostly in sunshine states which tend to be popular destinations. What Utah does have in common with the other states is the subprime availabity. If their were at one time say a dozen subprime products for brokers and consumers to choose from, now there are only two. So a slow down in Utah’s “best in the nation” status is and was expected because of subprime’s limited choices. The lessons that can be learned from this are simply; spend less than you earn, save your money, don’t by more of a home than you can afford, stay out of debt, avoid over refinancing, avoid at all costs 100% loans with 2nd and 3rd mortgages, don’t sign mortgage documents that you don’t understand, avoid subprime mortgages, but rely on conventional and FHA/VA loans. So it matters not what state you live in or what state your mind is in, these practical common sense rules apply to all including real estate investors.