Kyle Bass, a billionaire investor, is well-known for predicting the 2008 housing crash. He has shared the three states he’s currently watching and buying real estate in. Bass believes these states are the best places to invest in real estate, mainly because of their low taxes and lower living costs.
Kyle Bass: The Three States Where He’s Buying Properties
Bass joined Clay Fink on “The Investor’s Podcast” to talk about real estate in the U.S. He had correctly predicted the housing market crash before the 2008 crisis. Now, he’s sharing his thoughts on the best states for investment: Texas, Florida, and Tennessee.
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Bass suggests that people seeking good opportunities in the property market should focus on affordability. He emphasizes the importance of finding states where living costs are lower. “You need to move real businesses to areas that are affordable, have a lot of activity, and have natural resources to support those moves,” Bass said.
Lower Taxes is Essential
According to Bass, lately, there’s been a lot of discussion about moving to states with lower taxes. Studies show that many Americans moved to low-tax states in 2023, and this trend is expected to continue.
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Bass also believes it’s important to invest in real estate in these areas. He says that to take advantage of the property market, you should look for one thing. You should look for real estate in states with low taxes and low living costs.
Properties in Low-cost Living Areas
Bass praised states that are friendly to businesses and have lower costs and taxes. He mentioned Texas, Florida, and Tennessee as great places to invest in property. Bass also emphasized that investors should note where people are moving to. Currently, many are relocating from high-tax states to low-tax states.
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However, he advises against investing in some areas of the U.S. He believes that the Northeast and West Coast are poor choices for property investments. This is due to their high costs, high taxes, and poor management.
A Lot of People are Flocking to Texas
Investors like Bass have noticed that more Americans are moving to states with low taxes. One state like that is Texas. This has been happening for over ten years, with over 9 million people moving to Texas from 2000 to 2022.
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Many of these people are coming from states with high taxes. For example, in 2022, more than 100,000 people moved from California to Texas.
Kyle Bass: Many People are Moving to Florida
Texas is not the only state with a lot of new residents. Florida has also been seeing many people move there since the pandemic began.
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Many New Yorkers are relocating to Florida to escape the high taxes in the state. With more people across the U.S. moving to Florida, this trend seems likely to continue.
People are also Relocating to Tennessee
People have been moving to Florida and Texas for a long time, but now Tennessee is becoming popular, too. Many people from California are moving there, but they’re not the only ones.
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Interestingly, some people from Texas and Florida are also moving to Tennessee. They are mostly attracted by the even lower housing costs and the lack of income tax in Tennessee.Kyle Bass:
People are also Relocating to Tennessee
States like Texas, Florida, and Tennessee have seen more people move there in recent years. However, cities on the coasts, such as those in New York and California, have lost residents.
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According to the U.S. Census Bureau, over 75,000 people left California in 2023. New York experienced the most significant population drop, with nearly 102,000 people leaving the state in 2023.
Take Note of These Trends – Kyle Bass
Bass correctly predicted the 2008 housing crisis by observing the trends of the time. Years ago, when he bet against the market, many of his colleagues doubted him.
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While Bass hasn’t always been accurate in his predictions, he was right in 2008. Now, he’s advising property investors to watch states like Texas due to significant migration trends.
Carefully Watch the States With Low Taxes
Bass suggests that by taking a close look at these trends and keeping an eye on them, some predictions can be made. He said investors can predict changes in the property market and profit from them.
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Kyle Bass also mentions that he wants to invest in real estate and use a reasonable amount of borrowed money to do so.