Okay lets visit the fundamentals here…
When Harlem made the transition from being considered a irreparable slum, to a haven for young talented professionals and eventually the hip spot for even wealthier buyers…When prices for properties shot upward sometimes 10 to 20 times previous values, how did it happen?
If an investor looked at how things were in Harlem prior to the boom they would have missed the opportunity…You couldn’t see it like that. You have to have a forward looking approach. If you had a time machine I am sure you wouldn’t mind picking up a few properties in Harlem in 2006 and selling them in 2007-8. Detroit is the new Harlem on steroids.
As an investor you want to see these things before they happen…You want to get in at the beginning of the trend…But how do you know when there is about to be an explosion? Well one major indicator is when Jobs arrive, and you see things like this:
The “Live Midtown” plan:
Detroit Free Press, Feb 19, 2001 article excerpt
“Eric Johnson, 28, a Wayne State University student and employee, became one of the first people to apply last week for financial incentives to live in Midtown Detroit. The engineering student made the move on Monday from Farmington Hills into his new studio apartment that’s within walking distance of campus and dozens of restaurants, bars, entertainment venues and Detroit’s pro sports stadiums.
Midtown’s three largest employers, along with some matching funds from the state and various foundations, will put $1.2 million on the table for employees who decide to rent or own in Detroit’s Midtown area. The program is called Live Midtown. Johnson found his apartment last month, but hadn’t signed the lease when he heard about the incentives that would give him $2,500 the first year and $1,000 the second year if he moved. The money for the rent will be paid to the property manager.”-Detroit Free Press
This incentive program worked liked a dream and is being followed up by other very aggressive campaigns. This same program is offering buyers $25,000 to buy properties. There is also an initiative called Project 14 which is designed to bring Police officers into high value Neighborhoods close to Downtown and Midtown.
These things aren’t happening on their own, they are being spurred intentionally by a very impressive and unprecedented collaboration of Business, Foundations, Universities, and Government agencies all working together across partisan lines. The New Governor Rick Snyder a Republican, stated very plainly that the survival and revitalization of the State depends on a renewed and thriving City of Detroit. The Regional leaders are all saying the same thing. And the Federal Government is chiming in indicating that the recovery of the City of Detroit would be symbolic of the recovery of the U.S. automotive industry and the return to prominence of the American brand-Which the Chrysler commercial attempts to convey…
If this up from the ashes idea is to work it will require help from everywhere and it is happening. Detroit’s rebirth is intentional.