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.