Re: Really cheap houses! - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 29, 2002 at 18:28:16:
Shefen-----------------
I agree with GL(ON).
There is a little town in NW Nebraska–Chadron–that has a small state college but the main business was repair of railroad locomotives and perhaps rolling stock. The railroad was sold out to another railroad and they closed the shops. The executives moved out of town. Houses that were selling for $75K dropped down to about $45K with few takers. They were mostly being sold by the banks that were foreclosing on them. Then the town bounced back. The college enrollment went up significantly and Deadwood, SD, allowed gamblings, so there were casinos opened. The main road from the south to Deadwood goes right through Chadron. So travelers go through, buy gas, eat at the restaurants, and buy stuff.
Prices on the houses went back up.
But, recognize that every small town and county–in the USA, anyway–seems to have chamber of commerce or a local economic development counsel or commission. They are all looking to enhance the local economy. They thus compete for businesses and residences. The can’t all win. Especially with well-paying manufacturing jobs declining–in the USA, anyway. So, if you hear talk and rumors about efforts to develop your area, be skeptical. Try to find out what the chances for change really are. What at the local employers? Is there some chance for them to be growing in the near future?
I’ll bet that you will find that the major employers are not even private industry but are government activities: education and health-care mainly. With the population shriking there is little chance that the governmental agencies will be growing.
So look at the private sector. What are the changes to be expected there? Sometimes these changes can come from a strange source. One of the major employers near Portland, OR, is Nike. Who would have thought that those University of Oregon track team members would have such an impact on OR? I was at the U of O in the early '60s and heard about jogging long before most people in the USofA did. But I would never have projected a huge business based on running shoes, initially, at least.
So, be aware if there are any small businesses with potential to grow big in the next few years. Find out what businesses are projected by the national government to grow the most in the next decade or so in Canada, then see if they are over-represented in your area. If not, probably not going to see much improvement in the situation.
Here in the USA there are some parts of the “great plains” that are losing population. There are even some academics proposing the the government relocate everybody out of some of the areas and adbandon them to nature. Maybe that is what will happen where you are.
Do you suppose you could advertise here in part of the USA with high-priced for young people to move there? They would have to have some way to support themselves without relying on the local economy. Maybe computer programmers, authors, consultants, who?
Good InvestingRon Starr****
