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Joint Venture Considerations for Land Owners

Real Estate companies of Bangladesh have a vast contribution towards the development of the nation. However, most of the lands where the projects are constructed on are not owned by the real estate developers themselves. These spaces are owned by various individuals or groups who share their lands to bring new architectural ecstasies as the country emerges as one of the fastest growing economies. Most lands in the cities have either been purchased by the owner(s) themselves or passed on to them by their ancestors. But these individuals usually possess neither the construction and architectural expertise, nor the financial capability to complete a project, especially well structured ones. Therefore, most people put up their lands for a joint venture, with a real estate developer, where the land owner receives a significant sum of signing money along with a portion of ownership of the units that are to be available in the upcoming project. However, with such a long list of real estate companies to choose from, which one  would be the most suitable selection? Here are a few aspects of real estate companies to study upon before agreeing on a deal regarding your land.

Company Reputation & Completed Projects

When you are handing over your land to a developer company, you would surely prefer one with a strong and positive image in the market. Well reputed real estate companies usually tend to deliver a guarantee of completion, a warm approach to the deal, a reasonable signing money, a solid construction, a beautiful design, a range of amenities, facility management for a specific time and a long-term relationship. The brand reputation will also aid you if you decide to sell your flats or rent it out.

Study the background of the company and have a look at its previously handed over projects. It will give you a brief idea of the real estate developer’s work. In these modern times, most companies have websites that are highly active and very insightful. Check when the company was established to understand their depth of experience in the market. Study the type of clients that the company serves. This will play a big role in how the construction and architectural design of the project is implemented.

Hospitability

Analyze the approach of the firm towards you. It might help you estimate how the interactions throughout the construction period will proceed. Go for a developer that welcomes you with delight and maintains appropriate behavior throughout the meetings. Ask if you will be able to visit the site during construction is under process. A hospitable company creates a very comfortable environment for the landowner as well as the clients during negotiations. Remember that both parties here are essential to each other.

Quality of Construction

Despite the signing money that you’ll be receiving, you’ll also get ownership of the flats that are being developed. Hence, the quality of construction should be a prime concern. At present, premium real estate developers construct fair faced buildings, an ideal choice, since it enhances the building’s appearance and requires negligible maintenance in the long run. There should be no compromise in quality when selecting the cement, sand, rods, bricks, paint, or any other element used in the construction process. Solid construction reduces safety concerns for the residents. It further creates a vey strong reputation for the project and will eliminate wastage of time and resources in many stages of the building process.

Engineering Design

The structural engineer is a very crucial member of the construction process. If available, have a look at the projected floor plans. The building will stand solid if the engineering design is implemented right. It is ideal when the structural plan positions the pillars at corners of rooms where they are less visible without compromising the structural quality. Ask where the duct and plumbing line will be located. Inquire about the implementation of emergency fire evacuation stairs and the Bangladesh National Building Code (BNBC) in the building process. Structural design provides crucial back up on the foundation, walls, and material quality. This ensures a safe and sound environment in the premises.

Architectural Design

The architectural building design is vital as well. Inquire about who the architect of the project shall be. Analyze the positioning of the rooms, windows, and doors. The orientation of the structure will depend on the position of the land yet it is better you check with the developer company. Despite having a fine construction, clients might still be disappointed with the apartments due to poor architectural design and hence it is necessary that the project consist of a magnificent ambience. A good architectural design helps enable proper ventilation and lighting and utilizes the entire space sufficiently.

Features and Amenities

In this modern era, apartment complexes greatly highlight their amenities. As a result, it has now become a necessity that some features be available in the premises. Even though it varies from person to person but usually the list of amenities adds a significant value to the building. 24-hour CCTV surveillance and firefighting precautions are demanded by most clients these days. Check if the plan includes sufficient parking spaces for all the units. If the land backs it up, seek for premium projects that consist of high standard amenities like swimming pools, reflection pools, play grounds and gorgeous lobbies and community halls, whichever applicable, to enhance the value of the apartments.

Signing Money

An aspect coming in late yet fundamental is how much are the real estate companies offering to pay you at the beginning of the venture. It is imperative to remain in a win-win situation for both the land owners as well as the developers in terms of signing money. The amount here is determined by various factors like ownership of the portions, geographically accepted sales price, quality of land, the standard specifications for construction, design and so on. Hence, the land owner(s) may consult a third-party consultant for pre valuation for their land along with the target value-based design and construction, brand value of the shortlisted developers etc. It is also necessary to have a look at some of the handed over projects of the short-listed developers physically to facilitate the selection process.

Financial Stability

Do not settle for a construction company just because it offers a higher signing money. Analyze the brand reputation and financial stability to understand whether the real estate developer will be able to complete the project or leave it while it is still under construction. The financial stability of the construction company also determines its capability to complete the project on time without compromising quality.

Delivery Time

Ask the real estate company when the project will be handed over. If the delivery time seems too short, raise questions about the practicality of their claims. Nevertheless, you do not want to wait for around a decade just to see a structure arise on your land. You are likely to come across two sorts of offers. One that has a longer delivery time but higher share of units and the other with faster handover time but lower possession of units. Calculate if the higher ownership will get you more value or renting out units received earlier. There is no universal right choice here and the decision fully depends on the comparative advantages.

After Sales Services

Real Estate Companies are no longer limited to just delivering the project and moving on to the next. Many developers these days provide after sales services. Some of these include maintenance services for a certain period after handing over the building. Check if the company will be giving management facilities like security, housekeeping, HVAC (Heating, ventilation, and air conditioning) and MEP (mechanical, electrical, and plumbing) services. Ask if the developer has a dedicated hotline to respond to your inquiries immediately.

Choosing the perfect real estate company to develop a building as a joint venture project on your land becomes simpler if you consider the factors stated above. Selecting the right real estate company is the foremost step. At the end of the day, you can choose to move in, rent out or sell off your units but regardless of your plan you want your land to be the base for a marvelous structure to stand on.