With high down payments the threat of default on mortgages is limited, but small and medium sized developer defaults are a big concern. And one can easily make out that if Unitech is facing pressure in payment, what will be the condition of small developers.
One can expect few small/medium size builders or construction companies to get wiped out completely 1st either due to these defaults or 2nd may be due to pledging their shares whose values has come down!!!
The land deal with Unitech could be cancelled and the repayment schedule is likely to be extended. Also, more developers are likely to default. Meanwhile, Unitech has said that construction was stopped at Greater Noida due to farmer agitation. Moreover, all developers have written to Greater Noida authorities demanding ratification. Unitech said that payments are due only on peaceful possessions.
Opportunity knocking the door again!!!
Go for HBJ Capital's Paid Subscription which will provide you a "10in3" report on one of the small, smart & future leader of Indian Infrastructure Sector. Due to these defaults prices of all the real estate companies will fall sharply which will give you a life time chance to accumulate the 10in3 company (a multibagger in making!!!).
-Sharan G
HBJ Capital, India
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