Insiders tell me that due to sharp increase in raw material prices, real estate developers and builders are on the verge of slowing down or even stop work for 3 to 6 months, especially this information is in Maharashtra.
What does this mean, if it happens on ground?
A- For investors who have 2nd property and given on rent - be joyous - your rental income could grow faster and for 1 to 2 additional years with consistency.
B- For investors living on rent - Work more and hard - rental outflow will put more pressure on your cash outflow and personal family inflation.
C- For investors who have booked under construction property - you may miss your capital gain , tax advantage window which could result in higher cash outflow and so higher home buy cost then originally calculated. Secondly, we if you have opted for loan, and if builder is of loose and less financially strong, you uave some tough time to tackle their demand notices, which may reach to legale notices.
CA. Anand Lunkar
D- If you are looking to sell your Old property - joy - depending upon demand, very high chances that your old property may get sold faster and at higher rates then assumed.
E- If you are a developer / builder - testing times - ensure you are funded well and keep up with promises - after all tough times, separates trust worthy real estate developers . Plus keep suppliers and buyers well engaged with transparent communication and ears to what their heart is saying. New sales could take a hit, you may have to extend time lines with RERA, and disbursements on laons could become challenge (for your business as well as from home buyers who have booked in your project).If you are well funded, focus on delivery of project in hand, rather then launching new.
F- If you are a real estate advisor / agent - mixed time - your processes and skills of understanding of clients needs will be tested.
G- If you are loan provider or advisor - tough times, learn new skill- Regular and non-technical engagement with clients and understand real estate while you are already expert in financial technicalities.
What say ?
H- If you are financial planner, advisor, wealth manager, portfolio manager - be prepared for un planned withdrawal requests.
Kirtan A Shah
I- If you are investor in any real estate stock - revisit the books and deep dive the fundamentals of the company.
J- If you are thinking to enter real estate stock- keep your analysis ready and ears near to ground to enter in right stock.
This will directly lead to cost push for each of the groups.
NOTE - interest rates are also expected to rise this year.
#realestate #homebuyers #financialplanning #financialplanner
Your views would mean a lot for the industry and consumers - #comment