Kevin claims that he is an avid investor in properties and thus, follows the news "like a hawk" and concludes that what is causing all the havoc. He says that three factors are driving up the costs and the insurance premiums on the properties.
The Shark Tank investor explains that it is not just California that is under the radar of these trio affecting the market, but Texas and Florida have joined the club as well.
Kevin O'Leary , the Shark Tank investor, says that there are three drivers of affordability, and the first is mortgage. The rates have spiked recently, which has directly affected the buying cost.
The second one is insurance. Earlier, it was thought of as a precautionary process, but now it has become a deal-breaker in places like California.
The state has seen a lot of natural disasters, such as wildfires and floods, and earthquakes. And that is why companies are hesitating to insure properties in the area as they are at a larger risk than at any other place.
The Shark Tank investor feels that these three factors have created a hostile environment for the buyers.
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