The Federal Government has taken unprecedented steps to restore the nation’s economy. It does not matter if we think they were right or wrong. They did it. They dumped huge, vast, quantities of money into the economy. When any government does this in almost any style of economic structure, the end result is inflation. The government has never denied that this is the prospective problem. They have simply tried to appease everyone by suggesting that they can work themselves and us out of the inflation threat, which gets me to thinking. Hmmmm…
Right now, 2012, is the perfect time to perform a capital maintenance project in your community association or HOA. Many contractors are out of work and hungry. The escalating cost of construction materials is slower that it has been for a long time. If you are going to borrow to pay for the project, loan interest rates are pretty good. It’s as if all of the financial ingredients for opportunity have magically aligned themselves to knock on your door. It’s time to take advantage of the situation.
Does your HOA need new pavement? Does the pool need to be replaced? How about adding vinyl siding? You might not feel as though your association can afford such a project right now but the timing will never be better. I would suggest that if you do not think you can afford to do it now, you would be well advised to reconsider. You are going to be shell shocked in 2012 at the cost of trying to get anything done. Contractors will become a bit busier so their availability and price will go up. Inflation will kick in and the cost of materials will explode. Oil prices are suggested to be on the rise as we speak due to increasing demand. Inflation will also cause loan interest rates to rise. Does anyone recall the Prime Rate of December 1981 being 21.5%?
Talk to the HOA Lending Pro about obtaining the funds you need today to avoid the inflation and higher interest rates of tomorrow. There has never been a better time to do the project than right now.