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Sunday, September 8, 2013

Revitilizing Salisbury NC Historic Home and Business To Create Job Growth

Improving Salisbury, NC by Mixing New Building with Historical Buildings

Making Salisbury a Thriving Community Again by Mixing New Building with Historic Buildings


How to make Salisbury, NC and Rowan County Thrive Again

Introduction

As with any property investment project, especially revitalizing a struggling city, it is going to take time, lots of capital, good building locations, better infrastructure, and experienced contractors and engineers to help complete the revitalization efforts. There are a lot of differences in revitalizing a city versus building new homes, and revitalizing historic homes. While revitalizing historic homes and buildings can offer big tax credits and incentives, they often takes more time to revitalize, and take years to complete a whole neighborhood. While new homes often require less red tape to construct, more affordable to build, they are also easier to get to market and sale.  Using MB Construction Company's hometown of Salisbury, NC, planning boards, historical societies, and other special interest groups have made mixing historic buildings with new building very difficult.  So the purpose of this blog post is to illustrate some of the challenges facing Salisbury, NC and Rowan County, as well as noting some of the other projects Salisbury, NC and Rowan County has made to attract better paying jobs and more stable jobs into community. While some progress has been made by the city and county, we also want to point out some of the money wasted that attracted zero jobs to Salisbury, NC and Rowan County.  Then last but not least, we would like to add some suggestions to improve on attracting better paying jobs and more stable jobs to the Salisbury, NC and Rowan County areas.

Salisbury, NC and Rowan County, NC Shortcomings

As a lifelong resident of Salisbury, NC and Rowan County, I have seen the area both thrive and struggle.  Unfortunately, Salisbury, NC and Rowan County has been struggling for the most part the last 5-6 years. One of the main reasons for this is we have lost most of our textile plants, manufacturing plants, and other good paying jobs with great benefits to overseas companies. In my opinion where Salisbury went wrong is we made no proactive actions to replace these manufacturing and textile jobs until it was too late, which pretty much everybody knew we were going to loss when NAFTA and other free trade agreements passed, well paying manufacturing and textile jobs moved over seas. Since 1994 when NAFTA became law, unemployment was around 6%, in 2013 unemployment is hovering around 9%, and sometimes higher in North Carolina because of our dependence on manufacturing and textile production.  Salisbury, NC and Rowan County failed for 20 years to bring in new industries, resulting in a struggling economy.  Most Rowan County residents travel to Charlotte and other larger cities for work. 

One reason Salisbury, NC and Rowan County are struggling to bring in new business is the poor infrastructure of our road systems.  Our roads are crumbling, power lines in the way to widen most roads with high traffic volume, thus leading to costly expansion of roads for traffic growth if Salisbury, NC and Rowan County can attract larger employers.  Also, narrowing of roads like Brenner Ave. for a bike trail, on a road with one of the largest employers in the city of Salisbury, the VA hospital, has not only caused wrecks but also made employees late for work..  Salisbury, NC is also spending money on sidewalks out on Statesville Blvd. which is almost out of the county, and then have no sidewalks near Walmart where thousands of residents have to walk in the road part of the way to get groceries home everyday. Not to mention the street lights are out of sequence right at the Walmart intersection with the interstate, our main entrance and heart line into the city, causing traffic jams with not that many vehicles. Why mention these examples? Well these are some of the things employers look for when moving into a new city, to make sure they can their products and services out in a timely manner.  In my opinion, burying power lines and putting sidewalks where needed, will attract more business then expanding sidewalks a few inches in areas of the city with little to no foot traffic.

All this wasted money on unneeded projects not only raise city taxes, to pay for them, although Doug Paris has done a great job in balancing the budget this year, it also makes it a tougher job for Mr. Paris to grow the city. Another problem Salisbury, NC is experiencing which is detracting from new businesses is the rising cost of water bills.  This will also keep major employers from moving to the area as well. As good of a job as Mr. Paris is doing as city manager, boss is the city council, but at the same time he has to please the residents of the city of Salisbury, NC as well, which I think is hindering some of his abilities to make things better for bringing businesses to the area and growing the city of Salisbury. I know Mr. Paris is trying his hardest to recruit more better paying jobs to Salisbury, NC and Rowan County, NC, but one person is not going to be able to get the kind of big investors Salisbury, NC and Rowan County, NC needs to get the good paying jobs we need.  While I have read in the Salisbury Post about the EDC trying to attract jobs, I must say I agree with the country commissioners, that this program is not succeeding. For the amount spent to run the EDC, I think that this money could be better spent outsourcing to a more experienced company, that can bring some good paying jobs that employee more then 60-80 people.

What makes all these problems compound to the local community, is with poor planning by City Council and city engineers, it causes trickle down effect to the middle and lower class families.  If there are no good paying jobs, there will be less homeowners, which equates to less tax revenue for the city. This also leads to less money for nutritional assistance, health care cost, city and country employees, and other government services.  Also, when cities lose good paying jobs, people looking for work will move to other cities with better paying jobs. Less residents mean hospitals, doctors, and other health care providers will downsize their facilities as well, costing the city and county more good paying jobs, reduce the amount of government assistance for health care, and lowering the pay for health care workers that stay.  Loss of residents also raise taxes for remaining citizens to help pay for city services that are budgeted for current population levels.  With all these additional cost, it leads to less money for workers to save money for homes, cars, remodelling, and other big ticket items.

As a construction company owner, and I'm sure others will say the same thing, if we can't get good paying jobs and new businesses in the City of Salisbury, NC and Rowan County, there is little to no construction work, which are also good paying jobs. Better paying jobs allows more Salisbury, NC and Rowan County construction workers to start building and remodelling again. New businesses often build new buildings as well, or retrofit them to fit their needs, leading to more high paying construction jobs. These good paying construction jobs also leads to more people purchasing homes, which real estate is one of the biggest drivers of the economy.  Larger employers that pay better will also keep the construction industry booming again.  Luckily for MB Construction Company, we have been able to make it through remodelling and taking jobs in Charlotte and Concord where the economy seems to be doing a lot better.

Benefits Salisbury Can Build on to Attract More Business

While Salisbury, NC and Rowan County, NC has been heading in the wrong direction for a long time now, we do have a lot of to offer for things to do.  Restaurants, bars, friendly attitudes, reduced price housing, parks, and other amenities.  These things also help attract new businesses to communities as well.  Although we won't get a 8 million dollar school administrative office downtown now it seems, it is still more attractive to a businesses to have great schools instead of a $75 million high school for 2,200 students in Wake County.  Business people are good number crunchers and they know that this will cost them money in taxes in the long run, which may put Salisbury, NC in a good position for attracting new businesses with good paying jobs. Although Rowan County needs a new administrative building, I think we will save a lot of money at another location, which will also lead to new development in another part of town, something we need drastically. In addition to the shopping, restaurants, bars, nightlife, etc. it is also all located within walking distance which a lot of shoppers like.

Another benefit Salisbury, NC has going for them is a lot of empty lots and historical buildings that are emptily.  As travelling around the state of North Carolina, I have noticed quite a few times that have made their cities look great by mixing new buildings with historical buildings as well.  I think this would add to the appeal of businesses that are looking to Salisbury to relocate or build as well.

Purpose of This Blog Post

While their may have been a lot of rambling in this blog post, I think at least half the residents of Salisbury, NC are looking for better paying jobs, and as a construction company, I think we can provide some better paying jobs.  I am also a lifetime resident of Salisbury, NC and want to see Salisbury return to some of its glory days, where nobody had to worry about finding a job. This is not to be a political statement, just simply some observations and suggestions on how to help bring Salisbury, NC and Rowan County back to a thriving community.  If you are from the area or have been to the area, please feel free to add comments for more suggestions to make our small town better.

Also, if you are an investor looking to rehabilitate some of the property or buildings here in Salisbury, NC, feel free to call for a FREE estimate at 704-267-7763 and we will be happy to come out to measure, estimate, and help you get a material list together to form a budget.  Thanks for reading, and please feel free to offer suggestions on new blog post or how to make Salisbury, NC and Rowan County, NC a better place.

Friday, September 6, 2013

North Carolina - Historic Home Renovation Investment Stratagies

-How To Get The Most Out Of A Historic Home Renovation Investment in Rowan County, NC


Tips, Strategies, and How to Plan for a Historic Home Renovation


Historic home in Salisbury, NC and the surrounding Carolina areas are often beautiful homes, with spacious living areas and other amentities that new homes don't offer. Historic homes are also great home improvement projects for homeowners, who are interested in either revitilizing a neighborhood, looking for project that "fixer up project", or looking for a lower priced home to flip for a profit.  What we intend to explain in this blog post is how to asses your goals, and creating a plan to make achieve those goals.  We also want to explain some of the advantages a historic home can offer versus a new home as well.

Lets first start with the goals your are trying to achieve when shopping for a historic home.  Many homeowners simply like the larger floor plans historic homes offer, however in the current market we have found that their are many investors looking to either flip the historic home for a profir, or turning them into rental units to help maximize return on investment.  Obviously if your looking for a historic home as a primary home, its going to make the goal setting a little differnet, versus purchasing a historic home as a rental property.  Depending on the structure of the historic home, seperating a historic home into a rental property can be a lot more expensive, then rehabibing a historic home into a livivable unit for a single family.  We will go into more detail later in this blog post on what is going to be more cost effective, however when inspecting a historic home for either reason, there are a few thing you want to look for so that you can get the best historic home property suitable for you needs.

Here is a short list of some of the things that potential homeowners can look for in order to get the best historic home property on the market. We will try to list the most costly repairs first and go to the least costly repairs last. 

  1. Structural Repairs - When examinging structural repairs, it may be a good idea to schedule an engineer that specializes in historic repairs.  Even with a good contractor, any structural repairs in North Carolina are going to require a licensed engineer to sign off or make drawing to specifications to make any structural repairs that will pass local buidling codes.  The positive side to this however, is you know the home will be structurally sound and pass local building requirements. Also, a lot of exterior structural issues can be seen with the naked eye.
  2. Interior Repairs - One advantage to older homes is they have beautiful hardwood floors, trim, and other woodwork that isn't produced in today times.  However, the floors and wood my be beyond affordable repair, and may not fit inside a lot of homeowners and investors budgets.  Sagging floors, bad paint jobs, and poor electrical, plumbing and heating systems may cost more to bring up to date then the house is worth.  A good way to find out if these items are outdated is doing a through exploratory report, drilling small holes and testing electrical current.  You may also need skilled tradesmen to make this assessment as well. Aslo levelling floors can be costly as well.
  3. Exterior Inspections - Trees and landscaping my also have grown over the years making it costrly to have these things removed as well.  Aslo a good roof inspection is a good idea as well as roofing is not cheap, and there may be plywood repair under neat the roofing materials. Siding and soffit repairs can get expensive as well.
  4. Plumbing Inspections - Often times older homes use cast iron piping for waste and steel pipes for water supply.  Although cast iron is a good product for fire rating, however it is very expensive, to install, and from our experience it is also costly to repair if needed.  Steel water pipes hafe gone out of date, one for price, and the other reason is it doen't provide as clean of a water supple versus more motern products.  We have also found that it har find an affordable plumber to install and repair these products.  Even with the best plumber, cast iron and steel take a tremendously longer time to install, versus newer plumbing products.  Aslo, in older historic homes, a lot of the plumbing fixtures can be outdated as well, addiding more cost to the rehabilition.
  5. Energy Efficient Windows and Doors - Most older homes have older style windows with a sash and little insulation around the windows, leading to energy loss when heating and cooling a historic home. They generally have odd sizes, compared to current windows, leading to extra cost to have them custom made.  Same way with doors, in addition to doors that don't meet current ADA standards, which can also add cost to the rehabilitation.
  6. Sagging Ceilings and Floors - While floors can be a little more easier to level, ceilings can take a lot of time and labor to them flat enough to give an acceptale look.
  7. Fireplaces - Many older homes used fire places as their heating sours, which can cause heat and air loss, and lead to higher carbon monoxide levels.  Usually these are easy fixes, however these are some things that need to be taken care of now with more modern, and energy efficient heating and air systems.
  8. Out of Date Electrical Systems - Some historic homes have been rewired, however there are still a lot of historic homes with knob and tube electrical systems, which can be a very costly repair to bring up to current building code standards.
  9. Retrofittig For New Light Fixtures, Plumbing, Hvac, and Electrical - As state earlier, these can be costly repairs, that will be required to bring the historic home up to code.  This is not to add cost to the potential buyers, but to make the home more safe versus fire and other hazards.
  10. Replacing and Patching Drywall - Most older homes used plaser with battons, which not only create more timely demolition and patching.  This will also cost to the rehabilitation cost.
Now that we have listed some of the problems you my encounter when rehabing a historic home in th Salisbury, NC and Charlotte NC areas, lest list some of the advantages of why homeowners choose historic homes over newer homes.

  1. Huge Floor Plans - Many historic homes have larger living spaces such as living rooms, kitchesn, bedrooms, libraries, and bathrooms which is not common in newer homes unless you plan on spending a small forturtune on designing your you home or purchasing a million dollar home.  Even with all the disadvatges listed above, it's usually cheaper to rehab an older home, as you eliminate cost on footings, foundations, and high ceilings.
  2. Coverd Porches - Something that is making a comeback, but with the cost of new building materieals, its unlikely your going to find a cost effective way to get a porch that is as large and covered like an holder historic home is.
  3. Better Building Materials - An older home will often use nominal lumber vs. dimensial lumber. The difference is nominal lumber is an actual 2" x 4" width board, versus diminsial lumber which is 1.5" x 3.5" lumber, giving every structural wall another 1/2" of support, which also leads to less saggin.  This probably construbutes to why they last longer and stay square longer then newer homes. Most home shoppers don't even need to know this information to be able to ride by a histori home that is kept up, and see why it looks just as good, or better, then new homes.
  4. Roof Lines - Historic homes, in our opinion, seem to have better looking roof lines then newer homes, with flatter roofs then newer homes as well. Roof lines can make a house stick out from other homes in the same neighborhood.
  5. More Attic Space - Older homes seem to have steeper roof pitches, leading to more attic space for homeowner with a lot of person items which need more storeage space, tending to save a lot of historic homeowners savings on renting storage units.
  6. Larger Porch Areas - A latger porch area not only leaves rooms for swings, but also gread areas for family gatherings as well.
  7. Larger Craw Spaces - Making periodic home inspections a lot easier, in addition to any repairs that may have to be made in the funture.
  8. More Attractive Exterior Trim Prices - While new homes will use drip edges on the roofing, older home use crwon monling, which in out opinion adds more appeal to a home then just simpy pre-fab drib edge as seen on newer homes.
  9. Longevity- If you live in a historic town like Salisbury, NC, you will notice older homes genterally
  10. Tax Credits - As in the recent years, escepially Rowan Country, NC and Salisbury, NC have offered substantial tax creadis on making homes more energy effiecen, and older homes have better tax credits for rehabing onler homes, eliminating some of the extra cost in rehabing historic homes. Sonething definitley looking into when making a decision on a new homel  Riht now older homes are some of the best investments on the market in Rowan County NC, and Salisbury NC.
All in all rehabing a n historic home is a great idea and and can save a lot of money in can save big money on tax creadis.

We hope we have explained in a good way on why rehabbing a historic home could be a more cost effective way in purchasing a new home.  Not only do you recieve some good tax credits, your also doing something great for the local comumminty.  If your looking at remodelling or purchasing historic home, now is the time while market prices are done.

As always, we hope this blog post has been informative, and if you need help with estimating a historic home cost versus the cost of a new home, then feel free to call us to give you a free estimate and a cost analysis at MB Construction Company at 704-267-7763 for a free estimate.  Thanks for reading our blog, and be sure to ask questions in the comment sextion below, and list new topics you would like to here about on home improvments..

Sincerly,

Brad Basinger
MB Construction Company
224 Prescott Drive
Salisbury, NC 28144
Phone:704-267-7763 (Brad)
Email: brad@mbconstruction.com
Websiter: http://www.mbconstructioncompany.com

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