Tip of the Month - July 2009

Investments in Blighted Areas

Source: How to Make Money in Real Estate
              McMichael-Moser-Third Edition

Zoning laws, often bitterly complained about by Owners and Investors who want to use their real estate for unauthorized purposes, are definitely a deterrent against blight in urban sections.  Had it not been for the existence of zoning laws for the past half century, American cities unquestionably would be in a much worse condition than they are now.

A properly planned city, subject to adequate regulatory laws and strictly enforced zoning practices, might continue indefinitely without experiencing decay or blight.  Slums would never develop because the influences, which create slums, would not be present.  In such a community, an Investor would never be at a loss to know how to spend his money, for the sign posts of control would be apparent to everyone.

Few such ideal cities exist, however, so an Investor, to protect himself from the dangers of becoming entangled in a district where blight has or is about to lay its heavy hand, must make close and frequent inquiry into the conditions prevailing in any neighborhood where he plans to assume an ownership of property.

Cities which have progressive leadership definitely can do something about their plights.  Almost always the plan calls for spending money, but that is the only way a city can constantly improve itself.  Without proper planning, the money would be spent unwisely and unprofitably.

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This web page was updated on 06/30/2009.