Economic research reported by international news outlets,
all suggest that apartments located in major cities are well beyond the
financial reach of persons working in those cities, resulting in long daily
commutes, expanding city limits, growing ghettos surrounding the city centres
and, as a further result, opportunities for those historical real estate owners
to profit from the development of rental accommodations. When an average office
city worker has to travel for over an hour, it is time to relocate that
operation and the answer always seems to be, just outside the city limits,
naturally moving operations, converting slumps into industrial and commercial
parks with middle class housing units. The opportunity is for the previous
owners in that location to sell or develop.
The city centre, traditionally marked by high rise
buildings, architecturally designed to attract and keep global corporate
headquarters, financial operations with high-end trade, entertainment and penthouse
living spaces, is the first to react to economic movements. Noting that,
Governments, which may own buildings in the city centre, may not be able to
afford operations in that location, choosing to lease, to more profitable
enterprises as economic growth occurs and in economic downturns host only
special events as not to have the city centre seen as abandoned.
A few minutes from the city centre, by highway or other mode
of transport, are economic conditions generally termed middle-class, consisting
of some low cost housing that over a generation or two developed into a
community; religious, educational, sporting and security facilities, which
middle income earners can just barely afford. Limited availability of such
family units must escalate values, hence, driving further development and
renovations into single and two bedrooms apartments to meet market demands.
City type development is predicted to follow in the not to distance future, as
roads, electrical and electronic networks expand, as jobs and companies seeking
out more competitive economic rates, and as a skilled population grows.
Investment in ghettos, high crime areas, which has the
potential to eventually evolve into middle-class communities, must be
Government led; primarily by police and special security forces, in association
with religious, education and health interventions, all playing a part in
building an investment climate. Developing housing for low income earners
should be in association with or in close proximity to Government funded
housing projects. Noting that, all values and estimates would instantly
increase upon an announcement of the Government project.
The opportunity is to purchase lands, next to a Government
or large developer funded low income earners housing project, before it is made
public and building more than one middle income earners housing unit, with the
risks of breaks in rental agreements, the low income earner housing project
being postponed for a lengthy time or cancelled, leaving a greater exposure to
crime. Another opportunity is based on having legal rights to land in a
middle-class community and building more than one middle income earners
apartment, with the risks of breaks in rental agreements. And yet another
opportunity is to purchase more than one unit in a city complex with the risks
of getting a mortgage based on rental income and breaks in long lease contracts.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
