Quote:
Originally Posted by Londonee
From what I've heard - borrowing money is basically free now - so these developers all have wide-eye-balls and are cash grabbing left and right while the rates are so historically low knowing that these buildings have a 2-3 year timeline that's not affected at all by COVID. It's kind of a once in a lifetime opportunity for these guys to cheaply build out their portfolio.
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This.
And also, as this year has shaken out, covid has of course been devastating and has negatively affected the economy in a way that touches just about everything. But in general, the people that want to live in places like this are largely still employed, working from home, saving money because there is nothing to do, and spending so much time in their homes has plenty of people looking for an upgrade and/or some room to expand their living space.
If your retail estate portfolio contains a lot real estate and business properties, you're in the ninth circle of hell. But, residential? Especially higher end residential? You're probably feeling pretty good.
A lot of people projected residential real estate to crater in philly as people fled the city, but in general, the opposite has happened. It hasn't boomed as big as the surrounding suburbs, but prices certainly haven't dropped either.
There is still a lot of uncertainty and the bottom could fall out if vaccine rollout isn't as successful as anticipated and this drags on longer than expected. So if you're especially risk averse, this isn't your time. But I suspect the proposals we are seeing are serious proposals and have a pretty good chance of happening considering the fact that financing is much less of a question mark than it usually is.