Why & How Should I Buy a Home?

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“When going get tough the tough gets going”...

Don’t know who wrote this phrase first but one of the most “ghisapita” (most used, Bollywood meaning) dialogue in Hollywood movies & apt for today’s real estate industry! Ok, its meaning in simpler words is, “when the situation becomes difficult, the strong (man or woman) will work harder to meet the challenge when it gets hard”. Well, well, real estate may be the hard field to survive but the men related to it were never much famous to meet the challenges itself in first place leave apart hard challenges! This I am speaking as general perception as well going by the history (not very past) of the real estate. Just a decade back all was well & everybody was singing happily (read as making money) but something went wrong (well no one yet has found what went wrong) & the hip-hop songs changed in to sad ones, money is still there but one has to dig a lot for that & challenges are getting harder by day! And on all such backgrounds when personalities (read as public figures or leaders) speak something about reducing rates of real estate i.e. flat rates then masses i.e. “aam janata” does get influenced by such words (that’s why they are aam janata). And anyways in our country most so called big names as well leaders speak only what aam janata wants to hear instead speaking facts but that’s why India is special! In the latest entrant on stage of advising (sorry read as bashing) builders is one senior central minister of ruling party & he has advised builders to sale the flats (read as flats/row houses/plots/offices etc) on No Profit No Loss basis if (NPNL) they have to save their skin mean not to get bank-corrupt! Wonderful advice of course as he must have seen the future ahead for builders & that must be the cause behind such words & sure good intentions also. As what point in getting bank-corrupt & go behind the bars which many of the builders have experienced in past. As well he must have thought of the thousands of the flat holders who have booked their life time in the ongoing project & what happen to their dream home if the builder himself goes in jail instead completing the project. And then the present war with the virus will be on for some time sure & many business will get hit which again can affect the housing sale, is also he must have thought & to avoid all such bad future, the best way is sale it friends at whatever price you get but sale it!

Thanks Hon Minister sir, we highly appreciate you good wishes for real estate as well its clients but few doubts are there in the minds of the builders as well the existing & prospective buyers of the real estate (yes there are many still). 

The flat purchasers on one side are already baffled (confused) by their own financial safety & then there are other few names also who with same noble intention like yours has advised to sale the flats by reducing prices by 20%, which can match to your advise if at all there is profit of 20% in real estate! As why this sympathy towards just builders in first place, by all of you respected personalities! As more than builders think of travel, tourism & hospitality industry which is in dire state due huge cancelations of travel plans of millions & their main vacation period has gone for toss! Why can’t you advise the hotels like Taj Mahal or Oberoi to offer their rooms at NPNL (No Profit No Loss) basis as well the air travels & yes the restaurants & posh lounge bars, to come up with buy one get two type offer on drinks & food!  Then there are many  rental flats also & thousands of families survive on the rental income of their flat, please guide them for charging rent for just alternate month, who cares where the elderly family dependant  on that rent survives or not as first ensure the income guys, is the key, isn’t it? As well the Mercedes & BMW’s also can be advised for selling on same guide lines of NPNL & all the suppliers of the real estate! As if the builder is to sale NPNL then his all contractors & suppliers too has to follow the same path, right? Oh, lastly sir, before going to builders or any business why not our bankers (especially nationalized banks) & financers which charge nearly 18% & plus plus interest to the builders as well every to private mid or small industry (big industries are blue eyed boys) are to be ordered (as its govt’s baby) to charge interest on NPNL basis to every business. As look at the interest rate they pay to the individual depositor & rate of interest they charge to businesses (read as builders). As when a builder or any other industry if at all has to sale their product on NPNL basis then every segment associated to them has to be applied same scale is the logic, right?

And then the Billion Rupee (read as Million Dollar) question is if I have to sale at NP NL basis then why I should build a project or manufacture a product in first place? And second Billion Rupee question, who defines any businesses’ profit or loss! And the third Billion Rupee question, will the Income Tax dept accept my sincere say that I have sold all my product on NPNL basis so I won’t pay any tax or will the govt come with such scheme where I declare I have sold with NPNL basis so under that scheme no income tax will be charged to the said builder or the manufacturer!These are few question which came to my mind so thought I should ask, at least the flat buyers will be enlighten or how else they will know the builder is selling at NPNL basis & get benefited with it? 

Now coming to the flat buyers & ongoing project’s booked clients (means which has booked & awaiting possession) as reading, listening & watching (on TV) all such great wisdom words from different personalities they must be thinking what should I do about my home? Well, my message to all the existing flat holders is more than you the builder needs to complete his project as then only he will make some money, so for any doubts speak to your builder about scene of ongoing work & then act! For those which are searching their own home, use your brains & decide instead going by who says what! Know your needs & in any case a home in city like Pune or Mumbai is bound to be a costliest product so weigh your options carefully with your finances & buy as soon as you can where you are sure. This I am not telling as a builder but as a logical mind or common sense, you can call it & if you don’t trust me (sure you won’t), then speak with any of your friend, family member, colleague or even a stranger who owns a home today in Pune from last say five years (read as in any city actually) & ask about right or wrongness of his or her decision in buying it! If even three out of the ten persons you asked this question will reply, that they have made a mistake in buying a home of their own, then don’t buy right now. Either you can wait or start searching on rental basis your home as you can’t live on footpaths or shelters for homeless people by PMC, right?

And I am not luring you to buy a flat by saying (read as pushing) that this is best time to buy & when things will start rolling then the real estate prices will be high, types things. As nobody is or will be in position what will happen in coming year or ahead of it in any industry is a fact! But then when you are uncertain of future (philosophically speaking that’s why it’s called future but that different story) what you do (read as you should do) is invest wisely to secure the future in best possible way. And a home is only option which if on one side gives you safest & best shelter for your use then on other side it’s the best possible investment too. And I am not saying this again as a builder as gold is one parallel option which is doing well even now but you can’t live in the gold coins, can you? As there were, are & other options right for securing your future from bonds to nationalized bank deposits to insurance & yes “Sahi Hai” wala mutual fund too!  Well, I am sure that each of you is more wise or smart than me or any other builder when it’s investing of your hard earned money, so won’t tell you what’s best for you from all above options.

And then many of IT firms now seriously thinking of operating from home for their majority staff, TCS has already announced that by 2025 their 3/4^th staff will work from home for ever i.e. despite this virus thing. It does make sense as it will help these all companies which are mostly IT & Service based or Online Cos’, to reduce their over-heads for maintaining air conditioned office spaces. And in a way its boon for the city infrastructure, also it means reduction in vehicles though it’s going to affect Metro revenue but that’s another aspect of sharing. For now as an employee, Pune offers works (read as jobs) which is first need for survival for any person & then when you have a job you will need a home. And even if that home is a rental one then somebody has to buy it to rent you the same, is a fact.  By one approximate guess, over 6-7 lakh people have fled from Pune to their native place & it will be temporary as all these places won’t have the money or the life style these people are used to. And most of these are the ones who don’t own a home in Pune, so they will have to start afresh when they come back for looking at rental accommodation if they decide not to buy a home. As well those who has 1 bhk will have to upgrade for 2 bhk if husband wife both are going to work from home & so will have to do 2 bhk guys to 3 bhk, is again a common sense.  And then what’s use of amenities like swimming pool or community hall for few years for now but lesser monthly outgoings also can be one aspect while choosing a home as well focus more on children’s establishments if you are any way working from home! Though location & infrastructure like transportation, education will always have its own importance when its home.

Friends, to conclude all I will say, many things will change here after & life may not be same as it was but the importance of owning a home will always will be there as land is limited but opportunities & population are infinite, especially in city like Pune; choice is yours only, as after all it’s your life! Stay Safe, Stay in your Own Home!

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Sanjay Deshpande 

Sanjeevani Dev.

Please view my sharing about real estate in Pune at U-Tube link below..

https://www.youtube.com/watch?v=Y1xJ7SYgJcA

Please do visit my blogs to know about our philosophy at Sanjeevani ! (Click the links below)

 https://visonoflife.blogspot.com/2020/04/bade-loag-badi-baate-aur-real-estate.html

http://jivnachadrushtikon.blogspot.in/

Creating Togetherness; team Sanjeevani Way(Click link below)

https://www.flickr.com/photos/65629150@N06/albums/72157627904681345

For any of your complaints about city, log in at link below

www.punecorporation.org

Take your issues to Hon PM at link below..

https://secure.mygov.in/#

Think Green, Think Life

www.sanjeevanideve.com

Getting Used to Locked Down!

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“Time is never wasted, what you waste is your own life”...

Indeed time is crawling as with nearly 40 days of lockdown, most have even stopped counting days as in Pune region it seems even the second edition (third actually) of lockdown is likely to get extension. So, I too geared up for philosophy about the time & its utility. As right from office work to perusing personal hobbies to public relations & social work also, nothing stops at least not for forty days & I am not referring to myself but for every one of us! We are so used to some routine whatever it may be but each of us that some break we all need & we have it in the form of outing which we call holiday. But to be locked in our own home & still call it as a break is something not many of us are comfortable with! Now the first shock wave of locking down is over as well the fear wave is receding as the virus will remain here for a while is what most of the people (who cares) has understood & accepted, so now it’s about adjusting the routine ahead, isn’t it?

Major problem with many (read as man of the house) was & is, to adjust with people at home all the time especially with kids & that includes kids of all age groups. I know as usual most men will boost that they have great bonding & rapport with their kids & absolute no problem but then most men rarely accepts their weakness (read as failures) especially on personal fronts! So, no wonder that you will get to see posts of FB as well Insta about how a man is enjoying doing daily chores with the family during lockdown & how wonderful he feels, but that’s mask of a family man as or else all the jokes of whatsap hasn’t been shared (read as forwarded) so many times which all revolves around a man getting bored & bugged by home duty! Well, the scene isn’t different for the woman of the house also but that’s different story & a woman is something even gods haven’t understood, so I focus myself on the man of the house & the kids. Where the kids are yet in schools, the problems may be bit less as they still are supposed to (not used to) follow orders & more mummy oriented, so the daddy gets breather as well they don’t much interfere in daddy things!  But the teens as well more than teens, well I am sure my genre must be having great time knowing about their siblings. Each of us, ask your own self when last you have spent more than three straight days at your home, not going out anywhere & fully with your grown up kids? I bait not even one man will say, I did; as that was never imagined & here we are, already spent nearly forty days & sure many ahead for Pune , Mumbai region! So, what you have done in last forty days except counting days is what one should ask his self & write down, seriously, it will be a great soul searching (read as self knowing). Do include how you find your kids individually (if more than one) as well do ask your kids how they find you (your behavior) in this period as a father, as a man of the home! As right from sharing TV time to helping for home things to chatting with them on different subjects to making them realize how this thing is going to change life or knowing what they think about the impact on their life or future, so many things you must have discussed (if not, than try it).  So, when this lockdown as well epidemic ends (some day it will) , whether it has made any change in you or you will be back to yourself, the way you were before lock down, is what will decide what you are really within!

Well, about myself, there has been clashes, heated arguments as my two sons are well grown up & sharing is something they have bit forgotten as well none of them was used to spend so much time (read as all the time) at home & handling each other full time. And I can understand it’s an open jail or let’s say that Big Boss thingy (I have never once watched that) actually where few people are confined together in a home & are not allowed to leave the home without permission of some unseen Big Boss entity! Here too, many of us has started again knowing each other after staying so many days together; strange isn’t it, as some days in real closeness of a person & we come to know how less we were knowing him or her actually even with years of so called togetherness! And it tests your nerves as it’s difficult to accommodate people all the time around you but actually it’s more difficult to digest that you can’t even walkout from the scene! Surprisingly with nature of my work & thanks to my hobbies of writing or reading or thinking as well having luxury of staying next to my work place, I could keep myself much at ease (cool) in compare to many others (till now at least), is what my sons’ commented which I take it as a praise. Yet when you are a father you need to do the daddy stuff i.e. play it cool, even the praise from your kids & keep lecturing them in your own way, so I did! Here is something I shared to my sons; many will find its boring as personal stuff but then what better way to share than sharing personal example of handling lockdown at home there could have been! And then you always have an option while reading to quit... lol. Btw its whatsap message, so forgive the language on grammar front!

Dear chota (& dada) read what I am writing keenly as no one else will take efforts to write or care to tell u these things (is what I think)...

U r 23 plus & indeed u r a good but no more a boy, u r young man & difference between a boy & a man is, a man knows & acts on his own. Difference between good man & rest others is a good man knows what to do & why, in greater good for all, then only u end up earning respect!! Right  now u are obeying what I tell u but it’s not the goal, agreed we all are tied up to home but ur mind is not tied or lockdown rather we only can lockdown our mind which most of people does despite this physical lockdown that’s why they can’t achieve what they want to!

Even in these times u can  make ur own schedule & just an hour u can keep for video game type  entertainment, I am not against video game as now u or dada don’t have studies yet real life exams are ever on now  is what I both are forgetting! Whatever initiatives I am asking u to do, right from social work to make e brouture or following people & conference calls, all this can come to your mind also but it doesn’t as ur mind is yet not tuned to what u want to really become!! 

A lion can make a kill & give it to his cub & his cub may click a snap with the kill & post snap on Insta, will the world believe its kill by d cub?  Mind it, if u want to take the ship further ahead, u only have to take steering in hand & no one will tell u that. 

Now about taking ship of any business in hand, here the only way to do it is first gain respect in the minds of the crew for what u are by ur knowledge & commitment towards the job at hand & not by whom u are born to! And knowledge doesn’t come by keeping awake late, playing video games & waking up late!! Read, watch, speak, listen, think, share & ask; are the only ways to gain knowledge! I won’t now say do this & do that as that phase is gone for u both, all I can do is put in front of u what I think or feel about u &  u both are free to chose what to take out of it!

It’s like a buffet now, as till now life was order oriented & u were getting served what I ordered. But in buffet  choice is urs only & do mind in buffet most men end up eating  what they like to eat & not always what we like most, is good for health!!

Every genre thinks next generation is luckier than theirs as u got so many things which we never dreamt off but I never think so, as nothing in life comes free even if u may feel so. Your challenges are far bigger & different, like the perks u have got in life & my genre has given ur generation all the perks but most of us has forget, to give the strength or capacity to  digest or carry those perks was also ours & we blame you guys for our failures of doing so!

But then if 50% fault lies with us then u, who are now young men also are responsible as the way  u demanded the perks from us, u should demand the strength also to carry the load of the perks which as a man is expected from u! 

Life somewhere in growing up becomes an open school , class is on, if u want to join & learn or bunk it & get lost in fun till it’s too late to get back in the class, u only have to decide , of-course if at all someday u want to become a class teacher by yourself, then only!

So, think what I have said & why & act up on if feel it’s useful as believe me nobody bothers what u become in ur life, except two or three persons & I happen to be one of them!!

If u read till this line, I will feel great, if not, well I am a class teacher & my class continues, awaiting students who wants to walk in & learn!! 

Baba

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Sanjay Deshpande 

Sanjeevani Dev.

Please view my sharing about real estate in Pune at U-Tube link below..

https://www.youtube.com/watch?v=Y1xJ7SYgJcA

Please do visit my blogs to know about our philosophy at Sanjeevani ! (Click the links below)

 https://visonoflife.blogspot.com/2020/04/fasten-your-seat-belts-gear-up-real.html

http://jivnachadrushtikon.blogspot.in/

Creating Togetherness; team Sanjeevani Way(Click link below)

https://www.flickr.com/photos/65629150@N06/albums/72157627904681345

For any of your complaints about city, log in at link below

www.punecorporation.org

Take your issues to Hon PM at link below..

https://secure.mygov.in/#

Think Green, Think Life

www.sanjeevanideve.com

Bade Loag Badi Baate aur Real Estate!

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“If a fool believes in some rumour then best way is let him do so”...

By now all of you must have understood this is one more lockdown philosophy & now nearly forty days have gone & ten more days to go (is it just ten?). And do forgive me for the sarcastism (some may call bitterness) of the quote regarding the topic I want to share but the reason is not the frustration for being locked down! As I fully understand that it’s in my benefit only & then there is no other alternative but the sarcastism is for the people’s reactions or way of expressing & even those whom we use to (soon it will be used to) warship in business as well social life! No need for the names to be mentioned (that hardly makes any sense, it’s in blog name only) as one is head of a very big housing finance company as private bank & respected in real estate fraternity as well international finance circuit & another is one of the oldest business family in country & more respected for his social maturity as well grace with which he carries a business empire & then there are many others but that’s fine as when its hitting real estate below the belt no one in this country keeps in the last line!

I have taken up this issue, as in past also many big names which we only (read as real estate fraternity) have made big, have been vocal & twitting also in lashing out at builders & developers, whatever may be the reason but never for anything good is a fact! If floods chocks city roads- its due to builders, traffic jams in Metro citi-s, its due to builders, trees are being cut-builders hand behind it, some reservation of play ground is shifted & a building is build-who else but the builder, a river has been encroached- it has to be a builder behind it, pollution levels increasing, i-s builder lobby & the list is as endless as Hanumanji’s Punch! Fortunately till now nobody has held builders’ responsible for the epidemic & virus but the spread or threat of the spread is most in slums as well in the illegal settlements, we all know. And exactly this is where our social idol Mr. Character Business Man of country has hit the builders (read as real estate) that it’s the greed of the builders which has been reason of the slums as well illegal constructions! And what a perfect timing of quoting his views, when the epidemic spread threat is most in these localities or settlements in Mumbai & Pune! Thank you Mr. Character, on be half of entire real estaters; had been some other time I would have just bowed down (like all others) & let it go but not this time. Even if you don’t intended or the media has misread & misprinted what you have said (a standard practice post statement) yet there are millions in this country for whom some names are god & when its morals & character & good practices, your name is one of them, this is why I felt writing back!

Sir, first of all, agreed whenever any wrong thing (read the list above) related to any piece of land may it be regular land, or under river or some reservation then the name of the builder is bound to happen as that’s the industry which builds or creates new structures. Just the way in this recent virus outbreak, it must be job of some research lab of microbiology or virology which has gone wrong. But then please look about millions of people who also are resident of this country & residing in some legal home (you are also included in it), these thousands of building are also creation of some builder only, isn’t it? Indeed there are few wrong  entities in this business which are in automobile industry also who makes fake or duplicate spares but let me tell you, no builder alone can build an illegal building unless he is  Super Man! As agreed behind every illegal building there has to be a builder, same way behind every non-affordable legal home also there has to be a builder but then behind him, stands the entire system which includes our govt as well media & the society too, of which you & me are also part. Because no illegal building can be erected overnight, not even in China, so what the so called system which has created RERA & IOD/CC like labyrinth processes to get one plan  sanction for a normal builder (like myself), is doing when the while illegal building gets build over few months? And then may it be a residence or some office use in such illegal buildings, who are the occupants, they too are citizens of this very country sir, just like the way they purchase duplicate spare parts of a car of your company also! So will you blame all legitimate auto makers as wrong & corrupt?

Now coming to slums, indeed it’s a curse to our cities but then again how can you blame just builders for making of slums because these millions of people are unable to afford a legal homes that’s why they surrender to slums & then no slum is possible without support or say consent of the rulers which we call govt is a naked truth even a child in this country knows but you & other so called Mr Characters’ never blamed govt for making slums, may I ask why?  Today the police are so meticulously implementing their powers for lockdown, why the same police & the system shut their eyes & ears to the noise of slum like Dharavi getting build & break it when it’s in making only? Sure Ddharavi hasn’t been build in a year & when you were young then it must be small in spread, so where were you al so called South Bombayites when Dharavi reached to the volume of today’s size? Never remembered anybody demanding its demolition as it’s totally illegal!

And then if you are counter arguing that’s its builder who made homes non-affordable because of our greed that’s why slums got created, then with same logic can be applicable to thousands of illegal lodges which shelters poor travellers that they can’t afford room tariff of The Taj Hotel, so they have to stay at an illegal hotel, isn’t it? Sir & speaking about affordability, just a small home build in remote area like Timbhaktu can’t be called as affordable rather you can make definition of affordability for others as who better than you know what happens when you make somebody’s dream of car to Nano size to make it affordable! It’s the entire setup including land cost to infrastructure to construction, to need of market as well social & financial position of a buyer all this decides affordability, not surely some bunch of uneducated businessmen whom you call builders!

Well, “baat jub afordability ki nikali hi ha to aur bhi kisi bhai saab ne haat dho liye apane bahati gnaga me”! Yes, one more name which has high respect & more importantly which has been raised from ashes of housing sector i.e. real estate only! He also jumped the train of hitting builders at perfect time saying reduce the falt selling rates, may it be even for ready possession inventory! Sir, you are also a respected worshipped name for us & again for both of you I am sorry for “Chota muah badi baat” but sir, affordability has to be two way, or else it would be called as charity, isn’t it? How will a banker repply, if I say, please reduce bank interest rates by 20% so that it will be affordable to me for building my project? I will like to know the answer, as that will enlighten me the formula which you have suggested for builders to survive! Indeed a home is costliest product in this country anywhere you not just in Pune, Mumbai of Delhi but even rural parts also or else the famous  phrase, “lagna pahawe karun aani ghar pahawe bandhun” wouldn’t have been exist here in Marathi which of course both of you legends won’t know as its in desi language,. Well, I will try to translate for you, it means two things a man should try in his life, and one is getting married & second is build a home, as both are toughest things a man has to face. No wonder real estate is one such weird industry as imagine for ages in this country when building one single home of own is considered as such a pain, what it must before building thousands of the homes, that too for others!

In a big city, to build one small building of even ten flats takes so much time & stress as there might have been times few decades back when being a builder was cake walk & all money but that’s no more for the present genre of the builders. I am not saying real estate is most hard or worst business as it still has money  which has got loads of hurdles along with it is a fact. As right from getting a clear legal land to obtain permissions, to build & to sale, is no more an easy job, courtesy the system we have here! Let me tell you gentlemen, govt as well media cares a damn for real estate & its issues yet every time there is flood or epidemic every govt organization expects help in kind or in money from builders (read as Credai) & we respond with open hands & mind, however pain we ourselves may be in! But when its policies or views to be considered nobody remembers builders as that time teaming with us is a taboo in this country, this is what we need to change if you want affordable legal homes & at reduced rates!  Even knowing all the fact, if you are commenting or blaming the builders for creation of slums or asking builders to reduce rates of the homes, then sorry gentlemen, all I will say is this is like a Guru telling some hungry man importance of “Upwaas” (fasting) with his stomach full!

Dear Mr Character & Mr Finance Guru (& all others) who takes pride in slamming builders & real estate, I am sorry for my anguish or frustration & let me tell you we respect you very much for you achievements & contribution for the country as well society. But please don’t make your line big by cutting our line small (again a phrase from Akbar Birbal)! As we respect you for your knowledge, wisdom as well experience but all these qualities are praised only if they are used to make other common mortal men (read as builders) a shade wiser & better human being &  that’s not going to happen just blaming us like any other cheap tabloid do; is all I wanted to share. And certainly this wasn’t expected not at the time when we all need to be united & fight the economic war forced on us by some virus! Sorry, again if I have hurt anybodies feelings then, “Michhami Dukadam” means Dilse Sorry!

--

Sanjay Deshpande 

Sanjeevani Dev.

Please view my sharing about real estate in Pune at U-Tube link below..

https://youtu.be/al0NZ-7Zhq0

Please do visit my blogs to know about our philosophy at Sanjeevani ! (Click the links below)

https://visonoflife.blogspot.com/2019/11/infrastructure-development-real-estate.html

http://jivnachadrushtikon.blogspot.in/

Creating Togetherness; team Sanjeevani Way(Click link below)

https://www.flickr.com/photos/65629150@N06/albums/72157627904681345

For any of your complaints about city, log in at link below

www.punecorporation.org

Take your issues to Hon PM at link below..

https://secure.mygov.in/#

Think Green, Think Life

www.sanjeevanideve.com

Fasten Your Seat Belts & Gear Up; Real Estate!

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“I won’t borrow light from moon but the courage to fight with the darkness”...

Well, just the way  Munshiji alias Omprakash says to Vikki Kapoor alias Bachhan in epic movie Sharabi, “shayari me wajan chahiye to ishque hona jaruri hai, barkhurdar”, same way for philosophy its suffering which plays major role for “wajan” i.e. death, lol, a self derived logic again(needless to say lockdown is the cause)! Well, every day of lockdown is becoming virtually happening as nothing happens in actual but zoom meetings, duo calls, whatsap group charcha, all are in full form. And there is something new (I mean created) as so much chaos around especially when real estate is the case, its bound to be as why this virus thing, whenever it’s any of problem which isn’t in control of govt or society; may it be less rains may it be flood may it be illegal construction or may it be Metro FSI/TRD/TOD whatever you call it (what the difference it makes anyways), it’s always the real estate which takes the blame & impact. Then real estate is a industry which is like an orphan (no “mai baap”) & here, work from home is not possible for most of the associated segments; well unless we start building virtual homes & ask people to live in them virtually & then get paid by Bit-coin!

Sarcastic, I am, but then that’s the scene as first the govt says you can start site work on 20^th April, though not sure how yet it announced & then on the eve of 19^th April govt (PMC,PCMC, Collector, Hon Dy CM& everybody) says nothing is allowed in PMC/PCMC (well may be in other areas allowed but I am concerned with this) i.e. Pune region. Well even its been announced that property registrations (read as flats”) also will be started on 20^th April, god knows who is allowed to go out for registration & how & most importantly why someone will dare in first place with such terror & confusion on media as well govt itself with its policies! So as usual all we can do is discuss & re-discuss about fate of real estate. No doubt despite efforts of every authority, scene in Pune region is bad than other areas of State on front of epidemic spread but we can’t ignore the other side of the curtain also which makes Pune & Mumbai most densely populated region with half of the Maharashtra (and many other State too) living in this region for their jobs & careers is a fact! And then with all due respect (plz do mind) I really wonder who is controller of the situation in Pune city, as Police has their own circulars, so has Municipal Commissioners’ of PMC & PCMC, then Collector has its own orders & on top of it Mai Baap govt which includes CM, Dy CM & whomsoever, have their own dosage of announcements regarding new restrictions, lifting or tightening! And joke is by my logical mind, if this is disaster caused by epidemic of a disease so the Public Health Dept must be controller & all other depts should follow what the concerned minister says which happened to be a Doctor also. But fact is except public health all other depts are running their own agendas with zero coordination, that’s main disaster actually! Sorry guys (read as authorities) but to the common man that seems the scene in this region at least, I don’t want to take away credit for your efforts (read as govts’) sure!

Any ways so by now more stringent restrictions on movements in Pune reigion for till April end are supposed to be there (don’t ask means what), I only wonder about how to control the labours at site which are cramped inside hutments in more than 40 degrees temperature outside & nothing to do! I repeat, I fully understand graveness of spread of virus yet at the same time pressure is mounting in lower class (in real estate as well other industries) is also a fact we can’t neglect, is what I am pointing at!

Well, on all such back grounds silver line is younger genre working with me is curious (worried also) about their future journey in real estate & my cousin’s son along with my younger son (mkt guy) too, working with me as an engineer sent me a mail with a ten pointer questioner regarding scene in our company as well entire real estate & social front. I am happy as if you don’t have questions, then that means two of the things, either you are too dumb or you have attained wisdom! But if you have questions & you dare to ask them means your journey towards wisdom is on i.e. you are surely not a dumb!  I  wrote him back saying I will try to answer as much I can as first I am an engineer, planner but less of a businessman by myself & second this is something which not even the best among us has faced, so I am not sure about my own right or wrong. Yet I replied with my logic & sharing the same which can be somewhat useful (I hope) for not just builders, their staff or real estate related entities but entire industry world (especially genre next in business) as well many of us. I have deliberately kept the draft as what I answered just to keep naturalness of the conversation as his questions reflects his freshness & they are regarding the project he is working on yet its applicable to most sites (as well most builders), so here we go...

On Tue, Apr 14, 2020 at 4:50 PM Rohit Mahajan wrote:

14/04/2020

Kaka, These are few issues about which i would like to know from your point of view.

1. How do we plan to get the whole construction work back on track for prestige avenue keeping in mind that we have lost quite a bit of time and the coming months will be of monsoon season after the whole lockdown is lifted.

Frankly it’s too early to comment as we don’t know what they decide about Pune & transport of materials thing, so wait till 20^th April orders. As even if they lift the restriction yet how the outside materials will reach to site as the supply chain will take its time to resume. And then we also have to take infection threat which will be still there, in our consideration keeping in mind safety of staff as well labours. So, I think best way is waiting till 3^rd May i.e. lockdown period over & take a review & then decide course of action. We will be writing to clients about the same as well authorities like RERA & our bankers regarding this.

2. We still don’t know or have any idea about the future developments regarding the situation of COVID-19 (in the worst case scenario for how long will we continue with the payment of salaries of the people working at the firm)

I am working at it as its going to be difficult sure with no revenues & people also should understand that no company can pay full when you are sitting at home for nearly 50 days! As expenses of the staff also must be less during this period like petrol & entertainment etc. That they should consider keeping in mind companies loss, this we will have to explain the staff by speaking to them across, which I will. 

3. Once the whole lockdown is lifted how we plan on notifying RERA about the delay and how realistic will their approach be towards it keeping in mind that all the construction firms with ongoing projects will apply for the same. Does CREDAI as a body have any plans for this upcoming situation?

Credai is a social body & they can advise or guide which they will. RERA has already allowed three months delay but the impact will be much more than that. But yes we are trying to make authorities know the facts & follow for policies on all fronts keeping in mind these facts!

4. Similarly how do we plan on tackling the situation from customer’s perspective?

Difficult aspect is selling flats here after as people are afraid of their own future & they may think of renting & investors will be there but they will make you cry (bleed ) for price we ask! We have to balance both & come up with innovative ideas to make people buy homes, is the only way! As well take existing customers also in confidence.

5. In this whole situation how are we handling the bank and their expectations as in the project finance, loans, interests etc.

Speaking personal level at present we have only one project loan (fortunately) that too Prestige site & its way below the sale inventory & we have asked them for weaver for three months which can be expected to extend by three more month. Best way is we try generating our finance for completing the project as fast we can. But govt will have to think about this aspect as well I too am thinking but my problem is I am too bad at finance & will take help of some real brain on that front! But for the developers with multiple projects, keeping cash flow & repayment of finance as well new money to complete to site works is going to be main challenge sure. Here the contractors & vendors also must accept to wait a bit for their payments as then only all will gain something.

6. Is increasing the costs of the product the only way to make up for the amounts lost during this period of time? If there are any other options to do so please let me know. 

Construction costs are going to get increase but not the sale rates & that’s the worst aspect of this disaster for real estate as well every other industry. We have to cut down on overheads as much we can & renegotiate with vendors as well contractors as they too have to face the heat!

7. Getting people back for work is going to be a big task and with this strict time frame to finish the whole work probably they are going to ask for increased wages so what do we plan on doing if that happens.

Its a two way sword as the labours as well contractors & vendors too need the work or they will starve to death, either here or way back their homes where they don’t have any jobs. This is what we need to make them explain at least we can try! 

8. Costs, salary, overheads and many more things need to be cut down on as to sustain in this market at this time; your views on this.

One should make proper assessment of all aspects of respective project & business & then act up on instead jumping on conclusions or else there will be unnecessary panic! That’s what I will be doing & you also have to follow same course. 

9. Real estate prices are estimated to go down by at least 20% if that happens what and how do you propose for the future development plans.

Real estate prices will go down is outcome of opinions of any disaster may it be epidemic or war or any financial crisis. So instead listening to such talks, we should try to judge exactly in what cost we can build & what price we can sale & what is need of the buyer & stick to that. Any person who hasn’t borrowed over the head i.e. heavily need not be afraid but stand firm & keep patience. There will be buyers for the homes, as all these people who has run away from the Pune will have to come back as they are not going to get jobs or life style they are used to have in their respective home towns is a fact. And when they come back they also will have to work at lower salaries is a fact! We need to make home buyers (well, means who doesn’t have their own home) aware about importance of owning a home as that’s best asset as well support in such times actually.

10. Lastly if there is any other thing that you think I should go through/read, please let me know. 

In these times patience is the key & a balance head as well we should think of other sources of income as just real estate won’t be an option or even having some industrial unit only. The service industry will be in good shape as people can’t live without their basic needs, so we should identify such sectors & try to look at them as parallel avenues. At the same time the home buyer will also focus on basic necessary amenities than spending luxurious specifications as hereafter for everybody every single rupee will count At least for two three years & then again things will be  back on normal as public memory is short always! But your genre must be ready for such global level social disaster as this may be first of its kind but surely won’t be last, mind it! In a way this may be a life changing episode for most of us if at all we take it as a lesson as right from attitude towards life to needs of life, many things are going to change & so has to real estate industry!

I think I have tried whatever best I can logically explain or answer your quarries, more at across; rather I will suggest you & rohan do share  this with our team on whatsap  also as they too also should know the scene ahead. I am happy you have thought a lot about work, as sure the future won’t be what we have predicted hereafter but then that’s why it’s called a future! One thing is sure for your genre must learn one lesson from this covid episode, which most of you guys have forgotten; there is only one option for the hard work & that is, more hard work! Adios with that! 

sanjay kaka

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Sanjay Deshpande 

Sanjeevani Dev.

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