Is now a good time to borrow money for construction needs?
It would depend on the need and/or demand for the proposed end product. Although guidelines are stricter, there may be some opportunities for certain property types to be developed or business owners not directly affected by the existing market conditions that are ready to expand their business . Positive aspects to consider are lower interest rates, declining land prices and somewhat lower construction costs, mainly labor. For businesses that are ready to expand, now is a good time to borrow funds for new developments. Does a bank monitor construction progress and how loans are being utilized? Banks generally utilized third party engineers to determine the progress of a project, with site visits about once a month to report progress to the lender. In today’s market, it is crucial that projects stay on time with proper utilization of funds. That being said, the monitoring level has increased, in some cases weekly, to timely identify and resolve potential delay causes. We need to make s
