Port leads city to high job-creation ranking

By Wayne Faulkner
Business Editor
wayne.faulkner@starnewsonline.com You might say that Wilmington’s ship has come in.Port-related activity and communications services have put the city No. 2 in the nation for job creation and retention in a report by the Milken Institute, an economic think tank based in Santa Monica, Calif.

In Wilmington, “port-related activity contributed to growth in other sectors, such as business services and construction,” the report said.

“Investments in port infrastructure have led to improvements in cargo capacity, creating more opportunities for trade linkages and port-related business.”

Based on 2006 data, the full study, “2007 Best-Performing Cities Index,” is to be released today. Wilmington moved up from 59th place in last year’s survey.

Ocala, Fla., ranked No. 1.

The institute, which describes itself as nonprofit, nonpartisan and publicly funded, has been doing the study for nearly a decade.

“The tremendous growth we’ve seen at the Port of Wilmington over the past several years results from the channel-deepening project completed in 2004,” said Tom Eagar, chief executive officer of the N.C. State Ports Authority. “To have our contributions to the Wilmington area’s tremendous progress recognized by the experts at the Milken Institute validates the ports’ economic-development initiatives and deepens our commitment to the expansion of the Port of Wilmington and our plans for the new port in Brunswick County,” Eagar said.

Wilmington’s performance goes beyond the port, according to Connie Majure-Rhett, president and CEO of the Greater Wilmington Chamber of Commerce.

“We’re a complete package here in terms of job development,” Majure-Rhett said Tuesday, commenting on the Milken Institute report. “People want to live here; companies want to locate here. The cost of living is relatively low.”

Looking ahead, though, she worries that “we have to have people to fill those jobs. We’re already seeing shortages in some areas. That’s why we think Cape Fear Future is so important,” she said, referring to an area initiative to attract highly skilled “knowledge workers.”

“Because as companies want to relocate to great places, we’ll lose our momentum if we don’t have the work force to supply those companies.”

Southern cities comprised 15 of the top 25 in the Milken report. The study said “it was no coincidence” that the top locations show “entrepreneurial strength, lower business costs and favorable business climates.”

Can You Afford A Second Home?

  By Vivian Marino
Published: July 15, 2007    (Parade Magazine) Owning just one home isn’t enough for a growing number of families. From rustic cabins to beachfront manses, second homes accounted for 36% of all residential property sold in the U.S. last year, according to the National Association of Realtors. Fueling the market are recreation-minded baby boomers, awash in savings or equity from their primary homes. Some are buying with an eye toward retirement or as an investment, while others want a vacation getaway to enjoy now and pass on to their children later. Finding a suitable place, however, can be daunting given the myriad options. And while prices are retreating—which could mean better deals this year—you’ll still need to consider your budget if you have your heart set on being near the water. The median vacation home price is $200,000, while shorefront properties typically sell at a 50% premium and water-view homes at a 25% premium, real estate experts say.  
 
Evaluate Your Finances
Can you handle the mortgage (if there will be one) or the property taxes and other expenses? Will you need to rent it out to offset these costs (and then hire a property manager)?“Make sure you can handle the carrying costs,” says John T. Reed, publisher of the Real Estate Investor’s Monthly newsletter, who prefers renting vacation homes to owning one himself.Christine H. Karpinski, the author of Profit From Your Vacation Home Dream, suggests buying in areas where renting your home for income is not restricted. Just in case your finances change, “I always recommend buying where you can have that as a fallback,” says Karpinski.
 
Pinpoint an Area
Are you more partial to hilltops than seashores, or do you covet a pied-à-terre under the city lights? If you can’t decide on a locale, you might opt for more than one through time-shares or fractional ownerships in condo-hotels. They offer amenities without the housekeeping and maintenance responsibilities.Most buyers prefer to travel within 200 miles of their primary residences, says David Hehman, president of EscapeHomes.com, a Web site with vacation-home listings. Most also prefer a place that is accessible to their sports or hobbies, like skiing or antiquing.
 
Look for “Hidden Gems”
The best deals may be found in lesser-known places on the periphery of the so-called hot spots.

“A lot of places are brand names, but just because they’re more expensive doesn’t mean they’re the best investment,” says Andrew Schiller, president of Location Inc., which runs the search site NeighborhoodScout.com. “People have heard of Hilton Head—it’s very famous and expensive—but just a town away is Bluffton , S.C. , where home prices are 20% to 25% less. You want to find places that are in the best position to run up in value and, of course, that you love.”

Watch Supply and Demand
Another way to increase value, or at least maintain it, is to own something in short supply. Areas that restrict building or that have little land left for development will often command the highest home prices, experts say.

When Christine Karpinski bought her first condo in Destin , Fla. , in 1997, she chose the largest unit she could afford. “The demand for a three-bedroom was high, but supply was pretty low,” she says.
 
Work With a Good Broker
While Internet sites allow buyers to browse and compare regionally and nationally, local real estate agents can pinpoint specific properties based on desired home type, price range and amenities.

“You may not always know what you want, but a really good agent could extract that from you,” says David Hehman, who also suggests talking to local home owners about an area and spending some time there yourself.
 
Shop Around For Loans
Local lenders might offer better deals than national institutions. Oftentimes, though, lenders will charge a higher interest rate or require a bigger down payment for a second home. “When you’re not occupying it as your primary residence, lenders are going to be a bit more cautious,” says Stuart Hoffman, chief economist at the PNC Financial Services Group in Pittsburgh .
Christine Karpinski warns buyers to be wary of adjustable-rate mortgages with low “teaser” rates. You may be able to afford the initial payments, but not after rates rise.

Consider Taxes
You usually can deduct the interest and taxes on a second home. If you use the home for less than 15 days a year and rent it out the rest of the time, you must report all income, though you also may claim deductions for advertising, maintenance, depreciation and other expenses. In some cases, you even can claim a loss. But there are restrictions: If, for example, you live in the home part of the time, vacation there yourself or allow friends or relatives to use it at a bargain price, different rules apply to reporting rental income, and deductions usually are limited.