Property development companies are those companies that develop housing and commercial buildings to be made available for the market. In Singapore, you will be able to find a lot of real estate properties that needs to be developed and sold. Establishing your own property company there might not be such a bad idea if you have the means to start it up.
Property Development Business Startup
- You must have extensive knowledge about property development. Attend seminars, trainings, or take a short course in a college that will teach you about real estate and business management.
- Make a business proposal for a time period; say, for 2 to 5 years of operations. Business proposals contains details about startup costs, licenses that you need to have, fees, business permits, and the number of workers you need to employ. State how you will be able to breakeven with your startup costs and to gain profits.
- If you run short with your capital for startup, apply for loans at various credit institutions. However, make sure that you apply for those who will only charge you for low interest rates. You can also opt to apply for business loan grants.
- Determine the services you are going to offer to your clients; services include roofing and repair or installation of heaters.
- Hire employees based on the services you will be offering. Make sure that you hire those that are skilled enough to do the specific job.
- Hire a certified public accountant to monitor all your finances and to do the payroll as well. The information you will get from the statements the accountant makes will be vital for your management.
- Create a price for your services. Prices should be based on the cost of the supplies, transportation cost, and labor. Make prices that are competitive; do not price your services too high so you can attract customers.
There are different potential renters such as those couples who want to save to buy a new home, single people who want to have privacy, and those people who are usually stationed overseas for a longer period. There are also things that they need to consider in renting a property and these include the following:
- Place where the rented property is already established. This decides whether the property is convenient or not for you and your family. The area where the property rented is usually found decides the monthly payment of the property.
- You should also decide if the property’s size, duration of lease, facilities, level of furnishing, and budget are all right for the rented property.
- You should also consider the neighborhood. You should consider the accessibility to different establishments such as distance to your workplace, schools, public transportation, and others.
- Some of the rental properties are either partial or fully furnished. You should make sure that the level of furnishing suits your needs.
- You also need to check your budget if you are able to finance the monthly rental payment of the property and if it is right for you.
After considering these things, you need to offer to rent the property by giving the landlord a “letter of intent” for formality of the offer. This is where the landlord will officially accept the offer upon signing the letter.
The letter of intent is a proposal between you and the landlord stating the intention to lease the property along with your requirements. Some landlords need to have the requirements verbally before the property’s lease. Most of the rental properties need at least an advance payment for 1 month rental as a deposit for the property.
The letter of intent includes the following details:
- Lease term – The lease for a property is usually 12 to 24 months and has a choice in renewing it for another 12 to 24 months upon end of the lease term; however there are some possible adjustments in the rental price at the landlord’s discretion basing on the market rates.
- Booking deposit or good faith deposit – This is the one month’s amount of rent. This is also considered as the deposit when the landlord signed the letter of intent.
- Security deposit – This is the amount kept by the landlord as security and is not to also be paid until the Tenant signs the tenancy agreement.
There are different business systems which are applicable in the government. There are six business systems that include the following:
- Accounting – This applies to the Billing, Labor, Indirect Costs, Budgeting, Compensation, and EDP Controls.
- Estimating – This is an acceptable system that gives a use of right source data, consistent approach, sound estimating judgment, and the adherence to established processes and policies.
- Purchasing – This needs to subcontract and purchasing systems to include the make or buy decisions, price negotiation, training, vendor section justification, internal audits, and management reviews.
- Government Property – This makes sure that there is compliance with the government property clauses of the contract.
- Earned Value Management Systems – This is the description of the company’s approach to the program organization, work authorization, indirect cost management, corrective actions, scheduling and budgeting, accounting, and managerial analysis.
- Material Management (MMAS) – This describes the system of planning, accounting for the acquisition, disposition, use, controlling, and issuing of the material. These should also comply with the “Ten Key Elements” of a sufficient system.
The ten key elements of material management or MMAS are:
- Having sufficient system description, processes, policies, and operating instructions.
- Having a valid time-phased need with 98% accuracy for BOM and 95% accuracy for MPS.
- They should also give a mechanism to report, know, and resolve the control weaknesses of the system.
- They should also give audit trains and have the records maintained.
- They should also keep up the 95% accuracy of the physical inventory records
- They should also give a detailed description of the circumstances which will result to either manual or system generated parts transfer.
- They should also keep up a consistent, unbiased, and fair logic for the costing of material transactions.
- They should also keep up the controls for allocation from the common inventory.
- They should also keep up the control on the physical commingled inventories.
- They should make sure of the compliance in the government standards through the internal audits.
Home ownership is basically the major priority of the government of Singapore for its citizens. This is the primary reason why they have created the Housing & Development Board. This government agency is tasked to create and develop affordable housing for Singapore citizens.
You will be able to find affordable homes developed by the Housing and Development Board all over Singapore. This is primarily the reason why before you purchase a unit, you must have already decided on the location you wish to be relocated in. You must take various factors into consideration; these include accessibility to transportation and basic needs and its distance to your workplace. Available properties from the board are posted on their website or the newspaper. Their list usually includes the size, the location, as well as the price of the unit.
Requirements for Eligibility
Owning a housing unit in Singapore is subject to the qualifications for eligibility which will largely depend on the guidelines of the development agency. In order for you to purchase from Housing & Development Board, you need to be at least 21 years of age and a bona fide Singaporean resident or a permanent resident of Singapore. For you to purchase a small unit, you must have below $8000 Singapore dollars as a monthly gross income. If you wish to purchase a large unit with many rooms to accommodate a large family, you are required to have below $12000 Singaporean dollars for a monthly gross income. Remember that these guidelines and qualifications are made by the board to limit the number of people wanting to live in such units. Since they are subsidized by the government, they give priority to those who have average to low income.
An application is submitted to the board for your housing unit application to be processed. The requirements or forms for the application are available at the Housing & Development Board’s website.
There are different structure types for business ownership in Singapore. These have different advantages and disadvantages. These structure types include the following:
These involve a one-person business which means that the business is not a limited liability company or corporation. There are no papers or anything special to set-up this kind of ownership, this only involves the person to create the business themselves. This type of ownership is inseparable to its owner since the owner and the business is the same. Become a sole proprietor of a business means that the owner is liable for any debts or court judgments they might face and they should report their losses and income to their own personal tax return.
This involves a partnership for a business that is usually owned by two or more people who is not a limited liability company or a corporation. Like the sole proprietorship, they don’t need to file any paperwork from the partnership and the arrangement starts when the owners start a business with another person. In the partnership, owners pay the taxes on their share of the business’s income on their personal tax returns, each of them are also personally liable for the total amount of the business’s debts and claims.
This type of ownership is also complicated and costly to set up and run and it is not recommended for small average business owners. This is because this type of ownership is often created by one company or person, also called the general partner; that will ask for the investments from their limited partners. The general partner controls the day-to-day operations of the limited partners and they are also liable for any debts unless the general partner is a limited liability company or corporation. The limited partners have limited or minimal control on the decisions and operations of the business; however they are not liable for any debts or claims of the business.
Corporations and Limited Liability Companies (LLCs)
In forming this type of ownership, this can become more costly and complicated; however for some small businesses that can handle it can become worth the trouble. These structures help in limiting the personal liabilities in the business debts and court judgments against the business; this is the main benefit of the LLCs and corporations. This is also an independent legal and tax entity that separates the people who own, manage, and control the business. The owners of this corporation don’t use their personal tax return in paying the tax on corporate profits; the corporation pays the taxes itself. The owners only pay the personal income tax with the money they draw from the corporation through bonuses, salaries, and others.
These types of ownership are usually formed to carry out any charitable, religious, literary, scientific, or educational purpose. They raise their funds through solicitations in public and private money grants and donations from companies and other people.
Real estate laws vary from one country or state to another. In Singapore, it is regulated by the government and it may be changed as necessary. When buying a property from the real estate industry, you must be able to be knowledgeable of these laws and keep yourself updated about them so that you won’t be able to encounter various problems that pertain to its ownership.
What the Real Estate Law is about
• Real Estate Property
Rules and regulations governing real estate property are sated in Singapore’s real estate law. It stipulates how the property should be used, bought, and sold accordingly. It will state the definitions of the terms you will encounter as you go along through the various articles found in the act. It will illustrate the procedures on the buying and selling of the property. Licenses and certification procedures will also be stated for those who are real estate agents and brokers.
• Usage of Property and Contracts
The contracts used in real estate and the manner in which the property is used are stipulated in the real estate law. These things will be advised to you by real estate attorneys as you buy or sell a property. This ensures the efficiency of the transactions wherein an agreement shall be arrived at before the final transactions are done. Attorneys are responsible for notarizing contracts and tracking down the titles of the property, as well as information that neither of the parties is aware of. They serve as a guide from the beginning up to the end of the transaction making sure everybody’s getting their part of the bargain. Attorneys are also the ones who will provide information about insurances, property taxes, and regulations on the property. Basically, they are the ones who will ensure that the transactions of their clients are within the boundaries of the law.
• Ownership and Relationships
The real estate law serves as a protection for both the tenant and the lessee. It stipulates the ownership and the relationship between the people involved in the transaction. It contains the rights and responsibilities of the landlords and tenants to ensure that there is fairness in their relationship. It regulates the rules of hybrid ownership, such as cooperatives, and establishes guidelines on how businesses can operate. Aside from that, the real estate law also stipulates the circumstances wherein the government will take away the property from the owner. This will be done through a legal process that is also stipulated in the law.