Question

Is there any situation when the sustainable growth rate cannot be accessed for a property management company?

Answer 1

Yes there are situations when the sustainable growth rate cannot be ascertained for a property Management company-

A). At the time of fluctuations and volatility regarding demands due to change in income generation patterns of various consumers, it is difficult to ascertain sustainable growth rate for property Management company.

B).when there is a contraction of an economy, it is impacting the real estate sector the most, so the sustainable growth rate cannot be ascertained with accuracy at these times, when the economy is on a contraction mode

C) when there is no certainty about monetary policies which are issued by Central Bank of the country, because Central Bank can unpredictably decides upon change in monetary policy due to demand patterns and money flow in the economy.

D). Change in legislation which can impact the demand and supply of this sector to a large extent.

E) At the time of the political unsability, it is also very difficult to to ascertain sustainable growth rate for a property Management company.

At such times, a property Management company will face of the problem of ascertainment of the sustainable growth rate.