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TSmacpong85
post Mar 25 2010, 06:44 PM, updated 16y ago

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My friend have a piece of land...around 2 acres...want to develope high end semi D...
so he want to know is it very complicated to become register as developer?
does he need a lot of paid up capital before he register as developer?
how about the consultant fees?like architect, M&E and etc.
Thanks for your advice.. rclxms.gif
edyek
post Mar 27 2010, 02:16 AM

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Joined: Jan 2009
From: Land of the Hornbills & Land Below the Wind


QUOTE(macpong85 @ Mar 25 2010, 06:44 PM)
My friend have a piece of land...around 2 acres...want to develope high end semi D...
so he want to know is it very complicated to become register as developer?
does he need a lot of paid up capital before he register as developer?
how about the consultant fees?like architect, M&E and etc.
Thanks for your advice.. rclxms.gif
*
1) 2 acres of land can be subdivide into around 8 units of semi-D. With each around 6,000-7,000 ft2 (depending on your local council/state building by law)

2) It is very long process to be register as a developer. You need Bank guarantee and a sum of cash deposit to Local Ministry and Housing Department to guarantee your company before you are registered with a license.

3) Yes. He needs a lot.

4) Consultant fess for Architect, Civil, M&E, Quantity Surveying is basically charge through percentage of your overall development cost, or by units.

Pre construction stage
1. Land subdivision
2. Consultant appointment and drawings endorse by local council
3. Looking for main-con/subcon
4. Property launching (sales and marketing)

Construction stage
1. Your project schedule
2. Getting the correct Man power to manage the project for you (Project manager, supervisor and etc,)
3. Monitoring your materials usage, ordering materials before price hike, etc.
4. Claim to the bank if you are using bank loan
5. Chase the bank for money from buyers if you have sold out your units

Completion
1. OC
2. Handling over of property to your buyers
3. Defects
4. Moving of your machinery, manpower, left over materials to the other development (in case you have another new project)

This is only some of the minor things that I can cover for you. There are way too many things in becoming a developer.

Please, if he is interested to become a developer, I suggest he go to work in a developer firm 1st and to get to know what a developer is before he starts to become one. Or he can just partner with an existing developer to developer the land a.k.a. Joint Venture. I'm sure your friend is not capable in becoming a developer. Being a developer is one of the toughest job in property industry.
Not to offend you but this is a big big business. It can easily cost you around a few millions to start up a project. By the way, Im sure there are not much people involving in this business here.

*I can tell you that I'm currently involving in property development business, so there is no point for me to bluff/scare you around.

 

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