Monday, November 28, 2011

SE Roanoke Poised For A Huge Drop In Real Estate Values

What is He Grabbing? I'm Sure His Mom Is Proud Of Him
Some lovely photos of SE Roanoke. The neighborhood associations have been working hard to change the image of SE Roanoke but it has been an uphill battle for them. I don't see how it will happen now though. They are hitting a brick wall and there is nothing they will be able to do to change the image of SE Roanoke with some new plans for the area that have been recently presented by the Rescue Mission.
Most in Roanoke have been hit pretty hard with the decrease in property values. Investors should expect another big hit coming soon in SE Roanoke which is not an effect of the economy but rather an effect of the Rescue Mission busing in people from all over the region to increase the size of their business. The Rescue Mission plans to add an additional 200 beds which will increase their population to approximately 650. A one third increase overnight. Quite a jump.

And this increase is planned to be right at the entrance or main gateway to this quadrant of the city so potential buyers and renters will have to drive right through it to get to your property.  On the good side for investors is all property values on that quarter of the city will drop and your taxes will go down eventually. The good side would be good only if you are still in buying mode and plan to get some properties for next to nothing. The city will be effected most when they lose tax money that they will never see again. The rents won't be effected, however you will be forced to rent to a lower class of tenant that accepts these kinds of living conditions that you may not already rent to which will equal higher vacancy rates and more problems.

Danger!!! Got to give props to the cops for dealing with this stuff.
What would you think if you were driving to a potential place to rent or buy and you saw this kind of daily drama on your way. Most people with any kind of desire for personal safety or respect for the place they live will high tail it the other way.

Many of us investors support the Mission in some way or another. The general principal of helping people who are down and out is good. However they also have a social responsibility to not harm others, especially one quarter of the cities population in doing so. If they were located in an industrial area or spread their services out with small populations throughout the city, hard working, tax paying citizens wouldn't be effected to such a great degree.

They also have a social responsibility to actually help these people. Which requires training them for a job or doing whatever is necessary to get them up on their feet as productive members of society. I've got news for you though, many of these people have been living at the mission for the past 15 to 20 years and they have been doing the same thing every day, drinking and drugging.

Give a man a fish and he will eat for a day, teach a man to fish and he will eat for his life. A good motto to go by....


Post a Comment


Real Estate Investors of Virginia. Copyright 2009 All Rights Reserved