The Other Side...
The Other Side brings forth information and perspective to the generally held
consensus or what one might read in the daily newspaper or see on the evening
news. Recall in 1999 when the news media proclaimed how easy it was to
make a fortune overnight investing in internet stocks? Often it is best to
do the opposite of what the news media is reporting.
Here are some facts to consider when deciding whether or not this is a good
time to purchase an apartment building in Baltimore City:
 | In August of 2007, it was reported that 4,000 jobs were LOST in the U.S.
In Maryland; however, we had a net GAIN of 3,300 jobs. The unemployment rate
in Maryland is 3.7%; lower than the US unemployment rate. |
| Employment is a key driver in demand for rental and owner-occupied housing
units. Strong employment will keep the housing slow down from being a
total disaster. |
| Baby Boomers, the first of whom turned 60 last year, are moving back into
the cities as empty nesters. The suburbs were great places to raise a
family; however, most people feel isolated in the suburbs. The City
offers the ability to walk on the streets, restaurants, theatres, museums,
festivals, and active night life. Baby Boomers are attracted to rental
apartments (which offer care-free, affordable living), condominiums, and
townhouses in the city. Baby Boomers have been a huge demographic driver
of economics in this country for 60 years and they are not stopping now.
This trend to move back into the cities is a huge, long-term trend that is
just beginning. |
| The days of easy financing for low income homebuyers with marginal credit
are over. Therefore, this segment of the market is forced back into
rental housing, which increases demand for rental housing. |
| BRAC (Base Realignment And Closing) is a federal program to consolidate
military bases across the country to save money and pool resources.
Maryland is a net gainer of 10,000 military jobs; between now and 2011.
Estimates range from a total of 40,000 to 65,000 total new jobs as a result of
BRAC. The difference are the private contractors, defense contractors
and support staff needed to support the military jobs. These new jobs
will boost the demand for housing. It is estimated that 29% of these new
households will be in downtown Baltimore. |
| While the Sub-:Prime mortgage collapse has affected financing for buyers
with poor credit and financing for some 3-unit and 4-unit investment
properties, financing for apartments with more than 5 units is unaffected.
Great rates still prevail! |
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