Top 5 Disadvantages of Self Redevelopment
While societies are suddenly eyeing for self redevelopment with a view to the benefits available, they need to also be cautious to get into this zone, as this approach is not as easy as it seems. The following are top disadvantages which stops societies from moving ahead with self redevelopment:
Having know-how of the entire process, the nitty gritty about construction and norms is a critical requirement for the project. If not available in-house, this can create a major deterrent while managing multiple experts and professionals.
2. Decision Making
Getting consensus amongst members at various stages becomes challenging as the number, frequency and level of technicality of the decisions is pretty high. And any delay in such decisions can instantly impact the time factor of the project which in turn impacts the project cost.
3. Ability to Sell
The biggest factor where societies have a fear in moving ahead with self redevelopment is the sale of flats as it directly links to the mortgage. Selling the flats at the right time and at the right price is important for the recovery of project cost which in turn impacts the mortgage. Even after sale of flats, keeping tab of the recovery is important to avoid the impact on the cash flows.
4. Management Capability
Doing right things at the right time, sorting and managing different resources and their requirements, while coordinating between different professionals, agencies, suppliers and their deliverables. Managing is a different game altogether. While getting people with the know-how of the process is possible, the right management capability can push the project on either side of the scale.
5. Availing Finance
Finance is the oxygen for the project, and at any point of time if not available can stall the project and create major hassles for the stakeholders involved. While some agencies are there to support the project partly, creating the right coalition amongst such agencies is also crucial for the smooth flow of the project.
Top 5 Advantages / Benefits of Self-Redevelopment
The need for self-redevelopment has gone at an all-time high. Societies are very much interested today to go in for self-redevelopment looking at the benefits which are available for them. With all other advantages remaining the same with a developer led redevelopment, the following are the Top 5 Benefits of Self-Redevelopment distinctly available for society members in self redevelopment:
1. Extra Area
Society members get higher carpet area as compared to the one given by developers. Society members can further buy extra area at a better discounted price for themselves.
The entire surplus generated by the project, which would have otherwise gone to the developer, in case of self-redevelopment gets distributed amongst society members. This is a fairly high amount and is used by members to manage their house maintenance when they start residing in their new homes.
The bigger advantage of doing self-redevelopment is the entire control being in the hands of the society. Controls like agencies/resources appointment, cash flow decisions, sales decisions, design decisions and all other day to day decisions of the program. The higher the control on the project operation, the higher the control on the output.
4. Risk Mitigation
The controls of decisions being in hands of society brings them closer to being an authority to minimize risks. The society can take immediate decisions on cost-benefit ratio and get the operation moving ahead faster.
5. Society Name
The NOCs, designs and documents will be directly in the name of the society. These clear assets, which even after the members start residing, are otherwise not available today with societies. In self redevelopment, this becomes a big advantage as all these are in the name of the society.