Property related company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Dear Friends,

our group of friends is engaged in sale and purchase of property for investment.

- Would it be wise for us to start a company instead ?
- What would be the pros & cons ?
- We feel it would be easy to mobilize funds through issuing shares and debentures. Are we rite ?

Regards

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 December 2013 Yes you are right in thinking as it will facilitate you to raise funds from public.

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Thanks Tushar.

- can companies whose primary business in property purchase & sale avail loans from Banks also ?

- can you point out any probable cons also in this regard ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 December 2013 Yes bank loan given on satisfying the criteria set by resp banks for availing loan.

Cons are like you may face loss or where there is no sales freq as forecasted or material prices increases or there is recession in economy due to which there are less buyers etc.

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