The Rise of the Suburbs
The coronavirus pandemic has had a major impact on the real estate industry. In March 2020 it was unclear to investors which sector would be hit hardest. The outlook at the time for the real estate industry in general was very bleak at the time. A lot has changed since that time.
The Wall Street Journal reported recently that Median home prices in area near major cities were up 14.2 percent nationwide. It also reported that median home prices in Bridgeport Connecticut was up close to 40 percent!
There are a couple of factors that are contributing to make the suburbs more attractive. Firstly, the pandemic has made people reluctant to want to live in close quarters with other people. The areas where the coronavirus has spread more quickly has been in places like big cities. Also, as a result of that there are less restrictions in place once one ventures out of big cities.
Also, many people are able to work at least part time from home. This makes the lengthier commute from the suburbs to a city job less onerous as it would have been had one had to commute daily. Many employers have come to realize that working from home (at least to some degree) is quite popular and doesn’t necessarily negatively impact employees performance. Because of this even when the threat of the pandemic recedes it is likely that many companies will be more flexible about allowing employees to work remotely (at least on a part time basis).
When the pandemic first hit Great Stone Capital, as well as similar hard money lenders were concerned about borrowers’ ability to repay their loans. Fortunately, Great Stone Capital has had quite success with avoiding the brunt of the pandemic. Many borrowers had invested in properties in suburban areas. Although it was unclear how things would pan out before the summer the record low interest rates combined with the pandemic fueled an unprecedented interest in their properties and most borrowers did quite well.
At this point Great Stone capital is able to provide amazing rates. In some cases, our rates are even better than before the pandemic. This is especially true for borrowers with good credit and/or borrowers with experience doing rehab.
Feel free to reach out to Great Stone Capital to find out more at 646-513-2300 or by email at davidsteinesq@gmail.com.