Residential inventory and condition

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PDF Editor FAQ

What is the meaning of "residential inventory"?

A ‘residential inventory’ is an in depth report on a property and its contents (an inventory). It is created in order to establish the condition of the building and contents. If a property is leased/rented the inventory is used to identify any change/damage that has occurred during the tenancy and charges/costs are claimed. It is important, if you are renting, to check that the inventory is accurate and to maintain the condition as identified.

Real Estate: Why is property so expensive in mumbai?

Mumbai is one of the most sought-after cities of India and the real estate market here is a great proof of this. The real estate market here is pretty dynamic and is based on demand-supply economics, following are few reasons which restrict supply and improve lopsided demand, thereby making the market expensive.Water locked. If you see Delhi, which is the capital of our country, you'd realise there's immense scope of supply from all sides of the city, but Mumbai is surrounded by Water from 3 sides (South, East and West), naturally the only way it can grow is northwards.Restricted supply. Mumbai is where land is extremely expensive and in a market where real estate is not doing well, most landowners (read: private landowners, developers, land mafia, SRA organisations, Mhada buildings due for redevelopment) will not be very keen to sell and let developers bring in newer supply. This definitely stresses the current available inventory and the buyers are many in comparison to sellers. This is done to improve market conditions, but it goes hand in hand with the economy.Population. Mumbai not only belongs to people who are born and brought up here. Mumbai has an ever-growing migrant population, which ends up loving Mumbai so much that they always stay here (which is great). Mainly because of the opportunities in the finance and entertainment sectors. This population needs houses faster than the Govt. can develop infrastructure and hence in distant suburbs like Borivali, Dahisar or Mulund too, you will see rates skyrocket. There's just not enough availability!Political Concentration in SoBo. The Mantralaya is in Nariman Point which is the southernmost tip of Mumbai. Since the Govt is there, businesses benefit from being in close proximity to the Govt. Govt officials also stay in areas close to their workplace. All this contributes to heavy concentration in South Bombay. Then again since its a coastal zone, you can't build too much. Which means whatever supply is there has to have an understandable market rate based on demand.Airport, National Park and an Abbatoir Mumbai is probably the only city in the world which has an Airport, National Park and an Abbotoir right in the heart of the city. It's a great facility to have Airports and Greenery in the city, but the problem is that it takes that much area to build housing away from the builders, which means what is left has to be used. Airport brings in another restriction of not allowing very tall structures, which means surrounding localities like Andheri East, Juhu, Vile Parle, Santacruz, BKC, Kurla, Ghatkopar can't have tall buildings, again restricting possible supply. Again brings you back to the demand-supply dynamics.Ready reckoner rates. Ready reckoner rates are the rate at which a deal can happen in a given locality, based on which the Govt collects stamp duty, which again (apparently) is reinvested in the infrastructure development,etc. The Govt. needs to hike these rates steadily so that they can collect more and then utilise more of the money collected in these taxes. This year though, the ready reckoner rates have not been revised yet, but will definitely be hiked in April.Lack of infrastructure. In spite of major concentration of work places in SoBo, Lower Patel, BKC and Andheri East-Powai, the ease of connectivity lacks in Mumbai. The only way to reach any place via fast public transport is the local trains, which in Mumbai, is an extremely strained amenity. Apparently, Peak-Hour Super-Crush load is a thing!?! If it was easier to reach places, people wouldn't mind staying in farther areas. Areas like Virar, Vasai, Panvel, Kalyan, Dombivali force you to commute in humid trains for 1-1.5 hours to reach your work place. It's a no-brainer, the farther you are, the closer you want to be ;) I mean who doesn't want to walk-to-work, the price is steep though. Ex: BKC has many banks, IT companies and Govt. organisations, but the residential property rate in the locality is anywhere between 26,000 to 48,000 rs per square feet. That's due to lack of supply. No Brainer!Unrealistic secondary market. The secondary market, has a very strange way to price their apartments. If a flat sells for a certain price in a locality, that becomes the cost of the locality. The flat in itself, doesn't have much to its merit. In the primary market, there is some level of logic in pricing, there is cost of amenities, floor,etc. But in resale, people will ask 2 lakhs extra for a sparrow that comes to their house every morning and wakes them up with its chirps! ;)And many many more reasons, but sadly it's the truth, and though people might tell you that rates are going to fall,etc because of high number of unsold inventory, be rest assured they won't. The Govt doesn't want them to fall so much!

How do I start a building supply company?

A2A. Start by contacting builders in the market you think you want to serve and survey them for their buying habits and requirements, and particularly for needs that aren’t being met by their current suppliers. You’re first goal is simply to learn if there is a market for you to serve.From there, consider developing an advisory group of these folks that will meet regularly—you’ll get an ongoing window into the market and the opportunity to develop relationships that, if you do things right, you can leverage for sales when you’re up and running.Meanwhile, research political and policy trends, national industry conditions and forecasts, existing and likely competition you’ll face and, of course, start up costs. If you’ll be serving any significant part of the residential market, be sure you have a very clear understanding of how consumer warehouse hardware stores like Home Depot might be a factor. While they usually don’t serve the bulk of larger residential builders’ need, they can kill your company if there is downturn in new construction. If you’ll be serving any part of the commercial market be sure you understand what regulations the Trump admin will be requiring, particularly regards to global trade. If your inventory of solar panels will be filled with product from China, and your profitability will be dependent on Chinese pricing, you could have a problem. On the other hand, if you’ll be serve the road construction industry, you might to be able to source much of your product from the U.S. (I think, you’ll know better)—and it might be a fruitful sector to serve given what the Trump admin has been talking about.From there define your minimal viable product offerings/inventory and begin to market them—even if you don’t have bricks and mortar pulled fully together. if you can seek commitments from builders to help you secure bank loans on capital investments if you need them. Offer them limited discounts if they’ll be buying products from you that they have been satisfied with from other companies, then be sure you serve the hell out of them for the first year or two that they are your customer (not that you shouldn’t thereafter) to be sure they hang on. Consider ongoing affinity relationships, for the same reason. These are less critical once you’ve established their trust for a sustained period.Be sure you grow fast enough to keep up with their needs. Most will tolerate some gaps in certain inventory types for a while (as long as you doing a great job supplying other things they need), but, you’ll want to grow their purchases over time, and, again, sustain them—and the best way to do this is by giving them the fewest possible reasons to go elsewhere.Good luck.

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