Chairman of Finstem group of companies “Mr. Manish Kumar Shoundik” firmly believes in the saying “A goal without a plan is just a wish”. Through different verticals of Finstem Group, the company is striving to provide direction to the dreams of individuals as well as corporate and excels towards providing solutions in the fields of Financial Services, Real Estate, Outsourcing Services and Digital marketing. The infrastructural development boasts of impressive projects like Finstem City-Florizel Villas on Bangalore –Mysore highway, Fin Castle Residency in Ludhiana –Ferozepur highway and Eastern Homes, Patna. Finstem intends to continue to grow in India & abroad over the next few years so that our foreign and domestic clients can continue to work seamlessly across the globe. With established centers across 8 Indian cities, the company boasts of its presence in Delhi NCR, Ludhiana, Jagraon, Bangalore, Mysore, Patna, Lucknow & Dhanbad.
“Real estate has been considered as the most sought of investment as per the Indian investor’s psyche.” Like any other market, Real Estate sector also has its highs and lows. Although investors have minted money during the boom period of 2002-2013, they also have seen the declining phase of the market between 1994-2002 when the properties were sold at half their peak price. Expecting similar returns in nascent markets might be possible, but it won’t be fair to expect the same kind of return in developed markets.
Lack of Buyer’s Interest
The bear phase of the market has directly touched the sentiments of investors and people are not very keen on buying the property looking at the unclear future picture of few of the projects. The sector carries a baggage due to ignorance and opaque regulation which needs to be settled to improve market sentiments. Decline in a number of buyers for residential projects can be witnessed clearly due to the lack of appropriate pricing, which is found as high as compared to the average income of investors and rental aspects of the property. This is one major factor that has impacted the level of demand for end users as well as the investors.
A boom in the Real Estate market is expected with GDP is moving to 7.5-8% per annum. Moreover, the current government has also tried to bring clarity to both buyer and developer in the form of a real estate regulator bill which makes real estate investment more lucrative and regulated investment option.
Due to the correction phase in real estate sector and rupee depreciation, investors can find properties being sold at half the price of their peak value. Although the cost of construction has risen over the past few years and the compliance cost is also expected to go up in view of introduction to Real Estate regulators, buyer’s can still find properties which are sold at a cheaper price due to rupee depreciation and large unsold inventories.
The approach in the current market scenario should be to invest under construction residential properties rather than the constructed ones, in view of the discounted price of the former as compared to the latter one. This is the time when investors should search for best possible options in terms of the legality of project, location, pricing and rental/future aspects in order to enjoy the best out of the market.
Think Before You Buy
Although, we can find properties with a lot of freebees and payment options similar to SIP, we also need to look at the details of the property with respect to location, track record of the developer, papers, and approvals in line with new regulations. A suggestion would be to buy sensibly rather than being lured by the lucrative buying options. After all, it is not only about the packaging but the quality of the item being bought.
Over-leveraging in the current market scenario is a clear no-no, which means people should only invest the money which is surplus and ready for investment rather than being lured by the market. Investors in the past have invested out of the pocket while being caught by lucrative marketing activities and in turn have burnt their hands when it came to paying the cost of the project during the market slowdown.
Investors should take calculative advantage of the current turmoil in the residential market, instead of avoiding it.
About Mr. Manish Kumar Shoundik
Mr. Manish Kumar Shoundik, CEO & Founder of The Finstem Group of Companies, Hailing from Jharkhand started his career in May 2013. Having a career spanning over 17 years of contribution at several senior positions in the fields of the banking sector, financial management, strategic planning and business leadership, to make him fully equipped with the essence of strategic planning, management skills, understanding and successfully running a startup. His work stint with banks like Standard Chartered, HDFC, ABN AMRO and Deutsche Bank at various leadership roles, contributed in crafting pillars of his dream company Finstem India Pvt. Ltd. He took the challenges of building the nascent retail business with a strong focus on the expansion of distribution and scale at every step of his career.