Firstly let’s understand what Demonetization means.
Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. But here the scenario is different. Today we see demonetization in our country due to abundant of fake notes being distributed around the country. Another reason is to stop the black money business. It becomes essential for the old unit of currency to be retired and replaced with a new currency unit.
On 8th on November 2016 Demonetization of Rs.500 and Rs.1,000 banknotes was announced by our PM Mr. Narendra Modi terminating the usage of all Rs. 500 and Rs.1,000 banknotes.
This demonetization has created a great impact in every sector be it real-estate, business, finance, stock markets, consumer economy, transportation, everywhere. You will come across many talking over it and writing too.
Let’ssee how Demonetization has affected Home Renovation Industry/Service
Demonetization impact – New home v/s Renovating Homes
For those planning to buy new homes
At this stage if you planning to buy a new house, in under construction projects, let me presage you that these projects are very much likely to get stretched. Main reason informal sources of capital will not be available and also that everyone is going to be so busy with this money matter distraction.
But for those who plan to buy a new house in Ready-to-move projects, you still will have to get some work done. You may have to get the kitchen done say Modular kitchen. If not Modular kitchen atleast some kind of storage, beds and wardrobe for bedroom, living room furniture, and lights etc. For all this usually cash payment is done and not by cheque.
If you’ve got this new house on loan you may find yourself in a hitch to make the above payments. And if you have made you separate savings that it’s a different story.
For those planning for home Renovation
Say, you staying in a house for 7-8- years and planning to make few changes to your existing one. It could be having a new furniture, dividers, ceiling work, other furniture work, anything or say multiple things.
Here if you have saved money that eventually has summed up to be 5 lakhs say, I would say is a very well planned action. But what if, due to demonetization you are not able to deposit this 5 lakhs in your bank or get it exchanged? It’s going to be worthless, right!!! Well if you’re able to deposit or get it exchanged then it’s a different story. Well if you’re facing major issues that need urgent repairing like water leakage problems, repair in bathroom-toilet, etc. please go ahead with it.
One advantage due to Demonetization here is that home owners will hire best of the best contractors for home renovation work or home interiors. As i said earlier, most projects would get stretched and cause of this , contractor are goona be looking for work right now since they are free. What would ahve been difficult yesterday has become quite easy today for those looking to get good work done. Thanks to Modiji.
If at all you planning to buy a new house or land or something, I would suggest you to wait until the money distraction is settled and wisely take a step at right time.