Recession 2.0, 2011 India? Steps to take to minimize damages in case it does hit.

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Recession 2.0. The latest version may be right around the corner. Its a complicated, interconnected global economy these days and Asian countries are heavily dependent on selling their products and services to the West. That is a fact. The dudes who are calling it a 'soft patch' are the same blokes who had initially called the recession of 2008 a 'soft patch' too. So that is alright ;). How, if at all recession 2011 hits and affects India is for us to see. We, at Indian Real Estate for Dummies are no authority in predicting its arrival or call the hoax. However, here are a few tips to be much better prepared for any economic downturn. We share them here:

1) Cash is king: Remember the thumb rule to pull yourself out of any adverse economic situation. Fixed deposits, gold, NSCs and cash in the bank need to be preserved now. Just. Hold. On. To. The. Cash. Period.

2) Defer expenses: You were planning on some luxury spending. A week out with the boy gang in Amsterdam. Or spending the surplus cash you have to buy a weekend farmhouse. Defer this for a while. Wait and watch is the right policy now. When you and I get to hear bad news like a Recession 2.0 from the media, think of it as the tip of an iceberg. It can get much worse. Precaution never hurts anyone!

3) Think before buying a new home: This needs a deep thought right now. Ensure that you know the pricing trends of the city and locality where you are planning to buy your home. If the prices feel realistic, go ahead and make your purchase. It is unlikely that prices will come down soon. However if you are planning to buy a home in an area or city in India where there are too many choices and prices feel too high, defer the purchase for a while. Tell your agent or builder that you will need a month more to arrange the finances. Do not worry, that apartment you liked will not be sold. And if Recession 2.0 does hit India, prices will correct quite a bit. You will be a big gainer. Same with stocks. Defer buying shares for a while. When the NSE hits a relative low level, buy!

4) Focus at the workplace: Reach office on or before time, be focused about work and if something is going wrong with the business, be in constant touch with your seniors and keep them appraised. When s*** hits, communication and discipline are the only tools you have left to keep yourself from being fired. When you can't get business, remember, most others can't too. Everyone operates in the same market. Keep your other skills working for you.

5) Spend time with the family: Whether you live in a rented place or a place of your own, this is the time to spend loads of time with the family. Curtail the evening dinner and drinks expenses and get home on time. Take out the Lego set and build something. Or cuddle up with your partner on the couch and watch a movie. Carry the beer home if you feel like a cold one. Everything to keep yourself happy and in good spirits while always being focused on Point number 1 above.

Like everything else, Recession 2.0, if it comes, shall pass. Sticking to this five point program should make it a breeze. Do keep us posted. We look forward to your comments.

About the author

Rahul Mishra is a real estate professional who started his life as a salesman, selling homes in the city of Kolkata since 2001. He worked pan India in real estate organisations like MMG Realty, Bengal Shrachi, The Phoenix Mills and The Space Group before helping co found Pillars with a single objective - To make real estate easy!

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