PLP Advisors, LLC

Financial Advisor Looks at Dayton, Ohio and Its 7,000 Vacated Properties

Dennis Tubbergen's radio broadcasts are available at www.everythingfinancialradio.com.

 

Grand Rapids, MI -- (ReleaseWire) -- 05/30/2013 -- It is difficult to stay abreast of everything that is happening financially in the United States today. Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can be counted on to give a hand when it comes to understanding the latest events in U.S. and world economics.

Whether people enjoy his weekly newsletter at http://www.moving-markets.com or his blog at http://www.dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On May 23, his blog was titled Dayton, Ohio Tries to Deal with the Consequences of More Than 7,000 Vacated Properties.

"The Dayton Daily News recently reported that the city has begun to demolish more than 7,000 abandoned properties," began Tubbergen. "Although the demolitions will barely make a dent in the problem with only 475 properties slated for destruction in the near future."

Tubbergen quotes below from the April 23, 2013 article.

Like many urban cities in recnt years, Dayton still finds itself knee-deep in abandoned, dilapidated properties as the result of the foreclosure crisis and economic downturn five years ago.

Boarded up buildings that appear to be on their last legs litter the city as it attempts to recover.

Kevin Powell, the city's acting manager of housing inspection, says officials plan to use $5.2 million - half from the state's Moving Ohio Forward program and a matching grant from the city's general fund - to raze 475 abandoned properties by the end of September.

That will scratch the surface of an estimated 7,000 abandoned property problem that is growing.

"This will probably be the most money we have ever spent on single family home (demolitions) in the city of Dayton," Powell said. "I don't want to give people the impression that nothing is being done. Four hundred seventy five is a lot, but it is not 7,000."

East Third Street resident Anna Seiber recently bought a home across the street from an abandoned house.

"Tear them down, put something useful there," Seiber said of what should be done to address the problem.

She said the property attracts vagrants and she has seen animals like possums, groundhogs and skunks.

"The other day when it was raining, a guy stopped and (urinated) on the porch twice," she said.

The need for demolition has jumped substantially in recent years.

The city demolished just 109 properties in 2004 - four years before the national economic crisis - for instance.

As of March 31, Dayton had demolished 146 properties this year that were either abandoned by banks or their occupants.

That number represents 271 housing units - apartments and single-family homes.

Dayton Daily News city hall reporter Jeremy P. Kelley says the city is racing against the end of the year deadline to use the funding from the grant program.

"They are moving as fast as they possibly can," he said. "There are buildings falling everywhere."

Powell said the city is aware of the impact abandoned buildings can have on neighborhoods.

"We understand it is a nuisance. We understand it is bringing down property values. We understand it is dangerous for our children," he said.

Abandoned properties have a negative impact on the city's tax collection, which are used to remove abandoned properties and pay for other city services.

"It's a complete circle that keeps eating upon itself," Powell said.

"There are two important points here," explains Tubbergen. "First, events like this are expected to occur during a winter economic season. The fact that the city of Dayton (as well as other cities all across the country) is raxing houses is a perfect example of debt being purged from the system."

Tubbergen goes on to say that as debt is purged from the system, deflation occurs. The fact that these properties are more valuable after the structures on them have been destroyed is a perfect example of deflationary forces.

"The second point is more ironic," states Tubbergen. "Part of the funding for the program to demolish these 475 properties comes from a program called the Moving Ohio Forward program."

According to Tubbergen, in an economic autumn season when the economy is expanding through debt accumulation, such as program would probably be boasting of its building projects.

"Only in an economic winter season is 'Moving Forward' defined as destroying properties," concludes Tubbergen.

To read the blog in its entirety go to http://www.dennistubbergen.com and select his May 23, 2013 entry.

Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.

About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at http://www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to http://www.moving-markets.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.