Knowledge Bank - Real Estate World
Sami Abdulaziz
With God's blessing, we start today the first series of articles (Knowledge Bank), which aims to maximize the value of science and search for the origin of the information circulating among the majority and identify the differences, roles, obligations, rights and duties.
Today we put some points above the letters to clarify what real estate development and real estate investment are
- The concept of real estate development:
A more comprehensive and broader concept than real estate investment and carries a societal dimension and has an active role in the national economy besides the search for profits for the real estate developer, as it needs a future vision for a new area that needs to raise the level of development, extend roads and provide the necessary public services and facilities to establish a new urban community that is an extension of the old overpopulated cities and the inevitable extension away from the population mass.
Real Estate Developer:
- Has a future vision based on scientific and realistic studies of the future of real estate in the area in which the projects are to be built. He makes a feasibility study for the project, a study of the market and the number of target customers, pricing of residential, administrative and commercial units, preparing a professional marketing plan, writing a sales plan, defining sales stages, defining several payment methods, indicating down payments and installments, writing legal contracts with all parties including designers, executors, contractors, suppliers and, of course, preparing sales contracts with buyers.
- Has a financial capacity (self or through financing entities) sufficient to purchase the land, make engineering drawings, licenses, soil research, start work on the site and continue implementation according to the previously prepared timetable.
The real estate investor:
The real estate investor does most of the studies and research done by the real estate developer with some fundamental differences, including:
- Investing in old cities and in areas that have a high demand from customers. The planning, design and implementation is for the building only without interference from the investor in the development of the area.
<The purpose of the investment is to create real estate units for the purpose of selling or renting and making profits from it. The return on investment and profits are for the investor and the state only has what it deserves in terms of taxes and fees.
** Real estate is an expensive strategic commodity and with knowledge we make it a profitable deal for the investor and the buyer.
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