Dwellings within range (close) of Nuke Power Plants

[Paul Ness MAI]

I too work at a bank and we have seen customers specifically pulling money out of the market and paying what appeared at first to be premiums for such small investments. Income is the same, so cap rates are taking a nose dive, but for how long is my question. Over an extended period of time cap rates tend to be level for similar types of investments.

 

[Terrel L. Shields]

I have a high power electric line between my house and my brother, 1/4 mile away. It sizzles like frying bacon this time of year. Yet because I have lived here 17 years, I don't even hear it. I would probably forget to disclose it if I had to sign a disclosure. That is the way with many stigmas.

Even Meagan's Laws notifying a neighborhood of a sex offender has become so old hat, I doubt the market impact is even measureable within 1 year of an offender moving into an area with fanfare.

ter

 

[Rick Neighbors]

We have a nuclear power plant here in Texas near a small town. After the plant went online, people started flocking to the town. It has a brand new hospital, brand new schools, brand new air conditioned equestrian center. Lots of businesses popping up all around. Great big new golf course that I can't even afford the green fees on. Go figure??!!

Rick

 

[bradellis]

Paul-

Good point. They are paying premiums for the 2-4's. This is one of those times when, if we were using traditional cap rates instead of multipliers for these properties, I'd be paying attention to the safe rate and return on equity parts of the question.

Be careful out there.

Brad Ellis, IFA, RAA

 

[Austin]

I am seeing the same thing here recently of a big buy up of rental properties, even some real fixer-uppers. I see this as reaction buying meaning a temporary reaction to an unusual event (stock market problems) and in a few months will be gone and forgotten. By the time the comp base builds up, it will be out dated. Reminds me of a story my dad told me when I was a youngster. A cat was crossing a railroad tract. A train came along and ran over the cat's tail. The cat looked around to see what was happening and the train ran over his head decapitating him. The moral of the story is: “Don’t ever lose your head over a little piece of tail.” I think that story describes this situation to a tee. Trends in unsettled times are useless information. Don’t get your head cut off by thinking otherwise. Just think of all this as potholes in a stretch of bad road. Kind of like driving South through New Jersey. As long as you are heading South, there is light at the end of the tunnel.