Investing in a Pandemic Climate
As 2020 experienced an economic crisis caused by the coronavirus outbreak, it’s important to ask yourself: should you save money or invest it?
With every news station consumed with coronavirus, many people are experiencing a sense of panic and anxiousness this year - especially regarding money. CNN has had its biggest audience for any three-month period in the network’s 40-year history. Fox News Channel and MSNBC also had record-setting quarters ending in June.
Since there is always a headline or a reason not to invest, your willingness to stay invested and make good investment decisions may be affected. Part of the pandemic paradox is that there has been a global surge in the housing market. Despite transaction volumes suffering an enormous hit from lockdowns and travel restrictions associated with the COVID-19 outbreak, global housing markets have remained vibrant during 2020, especially in Europe, Canada, and the US.
Some key points:
The S&P/Case-Shiller seasonally-adjusted national home price index rose by 3.62% during the year to Q2 2020 (inflation-adjusted), an improvement from the previous year's 1.57% growth.
The Federal Housing Finance Agency displayed an even rosier picture (from the seller's perspective) with its seasonally-adjusted purchase-only U.S. house price index rising by 5.02% y-o-y in Q2 2020 (inflation-adjusted), up from the previous year's 3.34% growth and the biggest increase since Q4 2015.
This year, the Federal Reserve changed up its strategy for interest rates, specifying new economic conditions that must be met before it would hike rates higher.
The central bank said it will likely keep interest rates at or around zero until the end of 2023. For the rates to rise, the labor market will need to return to “maximum employment”, while inflation must increase to 2% and look to be on track to exceed that threshold “for some time.”’
When economic news isn't so rosy, investors turn to the safety of bonds. The housing market is still strong, so investors looking for someplace to put their money are more likely to put their money in mortgage bonds, which leads to lower yields and lower interest rates.
Mortgage rates are at historic lows, so it could be a good time to invest in real estate. But you may be wondering whether there is a downside to low rates.
In short — nope, there's no catch. A low APR can save you thousands over the life of your loan...and who doesn’t want that?
Regardless of a seemingly ideal situation, it’s vital to run a Doomsday scenario before making any large investments. It’s important to ask the question: what is the worst-case scenario? If that happens, is this investment still smart?
We were forced to answer that question this year. Our initial projections showed a conservative 30% profit margin. But more importantly, people are not going to stop needing a place to live regardless of the economy; that demand is never going away.
The development of Daymark maintains a stable decision even in a “doomsday scenario” because, even in the case that the stock market crashes and dwellers sway towards renting instead, the luxury condo community can easily pivot to a rent-based sales plan without affecting the bottom line.
All in all, with so much uncertainty in the world, it is important to continue to take risks that make sense for you, because you truly can’t have reward without a little risk.
Get to know us.
The faces behind CTIG
DAVID BROOKE
David Brooke is founder and Team Leader of Brooke Group Real Estate at eXp Realty. David is dedicated to consistent growth, both professionally and personally. In addition to being a licensed Real Estate Agent in both CT and MA, David’s background as a licensed real estate appraiser brings added value to his client services and an increased depth of knowledge.
David’s role within CTIG focuses heavily on the sales and marketing of their projects.
LOU RAVEN
Lou Raven is a licensed Real Estate Agent with Brooke Group Real Estate. With 8 years of experience as a multi-unit retail manager, paired with his experience within the real estate industry, he is a wealth of knowledge for his clients.
Lou began investing in real estate in 2013 by purchasing small multi-family homes, rental properties, flips, and has over two dozen major renovation projects under his belt.
With a Project Management role within CTIG, Lou works closely with the General Contractors, Architects, etc. to oversee project development.
BENJAMIN ROCKEY
Benjamin Rockey is a consultant and a business mentor with Brooke Group Real Estate. A real estate investor himself; most of his experience is in the business field – having started and grown multiple businesses, during and after spending over thirteen years in the logistics and operational field working for UPS.
Ben is the numbers guy at CTIG. Handling everything from accounting to analytics, there is no detail that goes unnoticed on his end.
Behind the Brand(ing)
Portland(ing) - if you will. // The branding process of Daymark - PORTLAND, ME.
Portland(ing) - if you will. // The branding process of Daymark - PORTLAND, ME.
PROJECT GOALS
Brand goals A brand that helps people think differently about what they get here.
Challenge West Bayside area is challenging because the neighborhood hasn’t “turned” yet. We love a challenge.
RESEARCH & INSIGHTS
Place Our site, our surroundings, and the cultural phenomenon that is Portland, ME
Audience Who fits in here? Why would they want to come? How do we get them?
Competition Where else is our target looking? What are other sellers doing to attract buyers?
Taking all of this into account, we had to ask:
What says Portland(ing) to us?
A down-to-earth area for growing families or young professionals who have blue collar values and white collar tastes.
A city that offers the perfect blend of stylish and sophisticated, with genuine and unpretentious.
Enter: the birth of the Daymark logo.
Portland lives by a “collaboration over competition” theory, so by welcoming us into their community, it has been important to us that we represent the city in a way that makes them proud to call us one of their own; from the largest, to the most minute pieces of this project.
Decisions, decisions…
Color: Earthy and rustic tones were chosen to depict the importance of nature and the environment in Portland. With a heavy focus among the community on the value of being eco-friendly, and the impact it has on the city, it was important for us to represent that in our color palette.
Font: Given its coastal location, it was only natural to incorporate a nautical influence into the logo. We opted to do so by implementing a play on letters with the triangle shapes serving as an homage to boat sails and nautical flags.
Check out the final product below, along with all of our brand assets.
Daymark is officially Portland(ing).
What’s in a name?
The naming of Daymark - Portland, ME.
The naming of Daymark - Portland, ME.
It's amazing how crucial a name can be. It plays a monumental role in a brand's growth and perception, meaning it can completely make or break a company. For every company whose name becomes an entrepreneurial landmark – Apple, Uber, Google, etc. – there are countless whose names don't properly reflect the brand, and the company suffers because of it. We know the sheer power a brand can have, and when a name is the face of the brand, getting it right is absolutely crucial. For this part of the project, we partnered with a branding agency name Proverb, who went through the following process:
What makes a good name?
Meaningful. Will it make people think? Will it make them feel something?
On message. Does it align with a strategic idea?
True. Does it reflect the values of our brand, building and neighborhood?
Approachable. Is it familiar enough to be adopted?
Memorable. Is it unique enough to be remembered? Will it stand out from our competitors?
An authentic name that creates desire, includes insights on all of the following: place, culture, product, audience and competition.
A CITY AT SEA Portland is a city defined by the sea—it’s even in the name. Surrounded on three sides by the ocean, it has a rich maritime history of sailing, trading, and shining brightly in the face of uncertain waters. Inspired by the mystery of the ocean—and those who seek to illuminate it—each of these names is an unwavering beacon, guiding residents home.
A little more about Proverb:
“We partner with innovative real estate developers, cities, hotels, museums, architects, hospitals and other organizations that seek to transform the built environment. Our work connects with smart, sophisticated audiences, stands out from competitors and creates lasting value for our clients.”
Portland, ME
The largest city in Maine, is recognized as the state’s economic and social center. Situated on a peninsula located along Casco Bay, the city is known for its heady mixture of artistic and outdoor adventures. This coastal city offers a unique array of neighborhoods that feature a contrast of historical charm and blossoming renaissance. Over the past several years the Portland Condo Market has experienced substantial growth. In 2018 the average condo sale prices on-peninsula rose 6.6%, and a 20% increase in 2017.