Real estate developer salary: What is A Real Estate Developer?

What is A Real Estate Developer?

A real estate developer is a real estate professional who creates new developments or renovates existing ones, promotes them, and puts them up for sale. In essence, a real estate developer obtains land, prepares it for development, and manages the construction and sale process.

The developments of real estate property can either be residential or commercial. While some real estate developers are self-employed entrepreneurs, others work with a real estate firm. Because of the risks and workload, they often work with architects, contractors, landscapers, politicians, real estate agents, and other professionals.

A commercial real estate developer makes about $95,253 annually. Although certification is not necessarily required, a real estate developer should have a degree in a related field and over five years of experience. Skills such as communication, leadership, problem-solving, interpersonal, analytical, presentation, and project management are useful to a real estate developer. You must also be able to read and understand blueprints.

What Does a Real Estate Developer Do

There are certain skills that many real estate developers have in order to accomplish their responsibilities. By taking a look through resumes, we were able to narrow down the most common skills for a person in this position. We discovered that a lot of resumes listed customer-service skills, listening skills and communication skills.

Learn more about what a Real Estate Developer does

How To Become a Real Estate Developer

If you’re interested in becoming a real estate developer, one of the first things to consider is how much education you need. We’ve determined that 70.8% of real estate developers have a bachelor’s degree. In terms of higher education levels, we found that 13.1% of real estate developers have master’s degrees. Even though most real estate developers have a college degree, it’s possible to become one with only a high school degree or GED.

Top Real Estate Developer Jobs Near You

Real Estate Developer Career Paths

In addition to switching up your job search, it might prove helpful to look at a career path for your specific job. Now, what’s a career path you ask? Well, it’s practically a map that shows how you might advance from one job title to another. Our career paths are especially detailed with salary changes. So, for example, if you started out with the role of owner you might progress to a role such as vice president eventually. Later on in your career, you could end up with the title executive vice president.

Real Estate Developer

OwnerVice President

Executive Vice President

11 Years

OwnerOwner/ManagerProperty Manager

Senior Property Manager

8 Years

OwnerFacilities ManagerProject Manager

Portfolio Manager

7 Years

Project ManagerProduct ManagerMarketing Manager

Senior Manager Of Marketing

9 Years

Project ManagerGeneral ManagerProperty Manager

Regional Property Manager

8 Years

ControllerGeneral ManagerProperty Manager

Real Estate Manager

8 Years

Show More

Top Careers Before Real Estate Developer

Project Manager(167,116 Jobs)

11. 0 %

Controller(75,440 Jobs)

Owner(86,486 Jobs)

Top Careers After Real Estate Developer

Owner(86,486 Jobs)

10.2 %

Controller(75,440 Jobs)

Project Manager(167,116 Jobs)

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Real Estate Developers in America make an average salary of $93,510 per year or $45 per hour. The top 10 percent makes over $131,000 per year, while the bottom 10 percent under $66,000 per year.

Average Real Estate Developer Salary

$93,510 Yearly

$44.96 hourly

$66,000

10 %

$93,000

Median

$131,000

90 %

See More Salary Information

What Am I Worth?

Real Estate Developer Education

Real Estate Developer Majors

Business

28. 4 %

Accounting

15.9 %

Finance

Real Estate Developer Degrees

Bachelors

70.8 %

Masters

13.1 %

Associate

Top Colleges for Real Estate Developers

1. University of Southern California

Los Angeles, CA • Private

In-State Tuition

$56,225

Enrollment

19,548

2. University of Pennsylvania

Philadelphia, PA • Private

In-State Tuition

$55,584

Enrollment

10,764

3. Northwestern University

Evanston, IL • Private

In-State Tuition

$54,568

Enrollment

8,451

4. Villanova University

Villanova, PA • Private

In-State Tuition

$53,308

Enrollment

6,819

5. San Diego State University

San Diego, CA • Private

In-State Tuition

$7,488

Enrollment

30,018

6. Stanford University

Stanford, CA • Private

In-State Tuition

$51,354

Enrollment

7,083

7.

Bentley University

Waltham, MA • Private

In-State Tuition

$49,880

Enrollment

4,177

8. New York University

New York, NY • Private

In-State Tuition

$51,828

Enrollment

26,339

9. Arizona State University

Tempe, AZ • Private

In-State Tuition

$10,822

Enrollment

42,529

10. Harvard University

Cambridge, MA • Private

In-State Tuition

$50,420

Enrollment

7,582

The skills section on your resume can be almost as important as the experience section, so you want it to be an accurate portrayal of what you can do. Luckily, we’ve found all of the skills you’ll need so even if you don’t have these skills yet, you know what you need to work on. Out of all the resumes we looked through, 15.7% of real estate developers listed financial statements on their resume, but soft skills such as customer-service skills and listening skills are important as well.

• Financial Statements, 15. 7%
• Property Management, 9.3%
• Real Estate, 8.2%
• Construction Projects, 7.5%
• Due Diligence, 7.1%
• Other Skills, 52.2%

Choose From 10+ Customizable Real Estate Developer Resume templates

Zippia allows you to choose from different easy-to-use Real Estate Developer templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your Real Estate Developer resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.

Real Estate Developer Demographics

Real Estate Developer Gender Distribution

Female

After extensive research and analysis, Zippia’s data science team found that:

• Among real estate developers, 33.1% of them are women, while 66.9% are men.

• The most common race/ethnicity among real estate developers is White, which makes up 66.9% of all real estate developers.

• The most common foreign language among real estate developers is Spanish at 41.8%.

Online Courses For Real Estate Developer That You May Like

Advertising Disclosure  The courses listed below are affiliate links. This means if you click on the link and purchase the course, we may receive a commission.

Real Estate Asset Management 101

(1,137)

Real Estate Asset Management Training From Acquisition, To Ownership, Through Sale For Profitable Real Estate Investing…

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The Real Estate Development Modeling Master Class

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The Complete Guide To Building Real Estate Development Pro Forma Models From Scratch For Smarter Real Estate Investing…

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The Advanced Real Estate Development Modeling Master Class

A Complete Guide To Building Real Estate Development Pro Forma Models From Scratch For Commercial Real Estate Investing…

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Updated September 9, 2022

Real Estate Developer Salary San Diego, California, United States

Average Base Salary

Average Hourly Rate

$29.71 (USD)/hr

Average Bonus

$2,138 (USD)/yr

Compensation Data Based on Experience

The average real estate developer gross salary in San Diego, California is $61,806 or an equivalent hourly rate of $30. This is 10% higher (+$5,803) than the average real estate developer salary in the United States. In addition, they earn an average bonus of $2,138. Salary estimates based on salary survey data collected directly from employers and anonymous employees in San Diego, California. An entry level real estate developer (1-3 years of experience) earns an average salary of $45,334. On the other end, a senior level real estate developer (8+ years of experience) earns an average salary of $75,578.

Quickly search for salaries in other careers and locations in our salary database.

Job Title

City, State, Country or US Zip Code

This page is a promotion for SalaryExpert’s Assessor Series and is not intended for professional use.

Professionals should subscribe to SalaryExpert’s Assessor Platform.

ERI’s compensation data are based on salary surveys conducted and researched by ERI. Cost of labor data in the Assessor Series are based on actual housing sales data from commercially available sources, plus rental rates, gasoline prices, consumables, medical care premium costs, property taxes, effective income tax rates, etc.

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Estimated Salary in 2027:

$68,911 (USD)

5 Year Change:

11 %

Based on our compensation data, the estimated salary potential for Real Estate Developer will increase 11 % over 5 years.

Composes agreement

75%

Coordinates activities

75%

Discusses terms and conditions

75%

Oversees activities

50%

Oversees staff

50%

This chart displays the highest level of education for:
Real Estate Developer, the majority at 50% with masters.

See how education can impact your salary

• Chicago

  
  
  4 %

• Dallas

  
  
  3. 1 %

• Denver

  
  
  3.1 %

• New Hampshire

  
  
  7.6 %

• North Carolina

  
  
  13. 1 %

• Ohio

  
  
  13.2 %

• Bahamas

  
  
  95.5 %

• Bulgaria

  
  
  460. 7 %

• Philippines

  
  
  642.9 %

• Taiwan

  
  
  153.5 %

San Diego, California

The cost of living in San Diego, California is 73% more than the average cost of living in the United States. Cost of living is calculated based on accumulating the cost of food, transportation, health services, rent, utilities, taxes, and miscellaneous.

View Cost of Living Page

San Diego ( SAN dee-AY-goh, Spanish: [san ˈdjeɣo]; Spanish for ‘Saint Didacus’) is a major city in the U.S. state of California on the coast of the Pacific Ocean and immediately adjacent to the Mexican border. With a 2020 population of 1,386,932, San Diego is the eighth most populous city in the United States and second most populous in California (after Los Angeles). The city is the county seat of San Diego County, the fifth most populous county in the United States, with 3,338,330 estimated residents…

Sourced from Wikipedia

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Quickly search for salaries in other careers and locations in our salary database.

Job Title

City, State, Country or US Zip Code

This page is a promotion for SalaryExpert’s Assessor Series and is not intended for professional use.

Professionals should subscribe to SalaryExpert’s Assessor Platform.

ERI’s compensation data are based on salary surveys conducted and researched by ERI. Cost of labor data in the Assessor Series are based on actual housing sales data from commercially available sources, plus rental rates, gasoline prices, consumables, medical care premium costs, property taxes, effective income tax rates, etc.

Composes agreement

75%

Coordinates activities

75%

Discusses terms and conditions

75%

Oversees activities

50%

Oversees staff

50%

See how skills can impact your salary

• Chicago

  
  
  4 %

• Dallas

  
  
  3. 1 %

• Denver

  
  
  3.1 %

• New Hampshire

  
  
  7.6 %

• North Carolina

  
  
  13. 1 %

• Ohio

  
  
  13.2 %

• Bahamas

  
  
  95.5 %

• Bulgaria

  
  
  460. 7 %

• Philippines

  
  
  642.9 %

• Taiwan

  
  
  153.5 %

Learn About Our Products

SalaryExpert, powered by ERI, provides verified salary and cost of living data to the public with a comprehensive platform for evaluating compensation, career, relocation, and education decisions.

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Real Estate Developer salaries in Blue Springs, MO

How much does a Real Estate Developer make in Blue Springs, MO?

Average Real Estate Developer salary in Blue Springs, MO – $150230 per year. Entry-level positions start at $140105 per year while most experienced workers make up to $150450 per year.

Data comes from real salaries.

Just in case you need a simple salary calculator, that works out to be approximately $56 an hour. This is the equivalent of $12 519/month or $2 889/week.

Updated at
September 7, 2022

$150 230

Average salary per year

Low

$140 105

Median

$150 230

High

$150 450

$12 519

Average salary per month

Low

$11 675

Median

$12 519

High

$12 538

$2 889

Average salary per week

Low

$2 694

Median

$2 889

High

$2 893

$56

Average salary per hour

Low

$52

Median

$56

High

$56

Salaries Per Region

Real Estate Developer in Blue Springs, MO pay FAQ

How much does a Real Estate Developer salaries in Blue Springs, MO make?

The national average salary for a Real Estate Developer is $150230 per year in Blue Springs, MO.

How much can a Real Estate Developer in the Blue Springs, MO make per month?

The lowest salary for a Real Estate Developer in Blue Springs, MO is $140105 per month.

What is the highest salary you can earn in Real Estate Developer in Blue Springs, MO?

The highest salary for a Real Estate Developer in Blue Springs, MO is $150450 per year.

How many hours do Real Estate Developer in Blue Springs, MO work?

How many hours a week does a Real Estate Developer work? Most Real Estate Developer work close to 40 hours a week.

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Average Salary By Related Titles

What is a Real Estate Developer’s Salary

What is a real estate developer’s salary? America’s typical annual real estate developer income is $78,166, or $38 per hour. 10% of the population makes above $118,000 a year, whereas 10% make under $51,000. A Real Estate Developer in the United States can expect to make an annual salary of $73,875. That works out to about $35.52 an hour if you require a simple payment calculator. $1,421/week (or $6,156/month) is equal to this figure.

Since some organizations are looking to hire Real Estate Developers, New York City has a very active employment market for this type of position.

Because the average salaries in these ten cities are more significant than the national average, moving to a new town as a Real Estate Developer will be pretty beneficial to your career.

Finally, the average income for these top ten cities differs only 7% between New York City, NY, and Richmond, CA, reinforcing the conclusion that there is little room for wage advancement in these places.

When weighing up where to work and how much to earn as a Real Estate Developer, the lowest possible cost of living may be the most crucial consideration.

What Is Real Estate Development and Who Is the Real Estate Developer?

We’d want to explain real estate development and who qualifies as a real estate developer to avoid rushing things.

The real estate industry’s growth is attributed to real estate development. It is the land that a real estate developer acquires to develop their field projects. Real estate development encompasses various types, from commercial and retail to residential and mixed-use properties.

What Does a Real Estate Developer Do: The Typical Day of a Real Estate Developer?

The next step is to assemble a team of real estate industry experts, including architects, engineers, etc. You’re also responsible for securing all necessary permissions and money for the construction. Instead of doing the work all by yourself as a real estate developer, you’re more like an orchestra conductor.

A real estate developer coordinates the numerous parties involved as the real estate investment circus (or many circuses). Consider checking architectural plans, contracts, local permits, and layouts as examples of things you might look at. Many successful real estate developers, on the other hand, form a real estate development firm under an LLC to manage even more projects at once. 

Average Real Estate Developer’s Salary

As a result, those who work in real estate development are generally well-paid. According to CEL & Associates‘ most recent real estate compensation survey, residential project analyst salaries range from $82,600 to $279,400 per year, according to CEL & Associates’ most recent real estate compensation survey of the industry.

A job’s yearly median wage

• $63,200 for the project manager
• $118,600 for the project manager
• $169,400 per year for a senior developer
• $279,400 for a top development manager

Top 10 Highest Paying Cities for Real Estate Developer Jobs

New York City takes the top spot, followed closely by San Mateo, CA, and Boston, MA. Boston, MA, is $8,470 (11.5 percent) ahead of the national average, while New York City, NY, is $12,346 (16.7 percent) ahead of the $73,875 national average.

City Annual Salary 

• New York City, NY $86,221 
• San Mateo, CA $85,083 
• Boston, MA $82,346 
• Juneau, AK $82,337 
• Berkeley, CA $81,771 
• Daly City, CA $81,540 
• Santa Monica, CA $81,390 
• Quincy, MA $81,052 
• Renton, WA $81,010 
• Richmond, CA $80,294 

Top 5 Best Paying Related Real Estate Developer Jobs in the U.S

Five jobs that fall under the Real Estate Developer category pay more than the average annual salary. 

Aside from the average Real Estate Developer salary of $73,875, these jobs pay between $22,910 (31.0 percent) and $76,145 (103.1 percent). If you’re qualified, you may be able to earn more money than the average Real Estate Developer by being hired for one of these related positions.

Job Title Annual Salary 

• Real Estate Partner $150,020 
• Estate Manager $126,143 
• Real Estates $106,813 
• Director Real Estate Development $103,125 
• Real Estate Portfolio Manager $96,785 

How Much Does a Real Estate Developer Make?

In terms of producing money in real estate, a job as a real estate developer can be pretty lucrative. Even so, how much money does the developer make from his projects?

A real estate developer’s profit margins might be millions of dollars.

The developer’s profit is affected by various elements, and you should consider this. Whether a shopping mall or a residential unit, the project is essential. In addition, the amount of money the developer borrowed from the bank as a mortgage loan affects the profit. Consider the fact that a single project may take several years to finish. 

Frequently Asked Questions

How Much Does a Real Estate Investor Make?

Real estate investments typically yield an annual return of 8-12% on average for the average investor. An investor in commercial real estate might expect a return of 9.5% on their investment. Return on residential real estate investments is approximately 10%.

How much tax will you have to pay as a Commercial Real Estate Developer?

Individuals in this tax bracket are expected to pay an average of 22% in federal taxes in 2018. Commercial Real Estate Developers can expect a take-home pay of $67,448 per year, each paycheck totaling around $2,810.

• After deducting a federal tax rate of 22%.
• Assuming a bi-monthly pay cycle. For this calculator, we’re using the individual federal and state tax tables for 2018. 

This information should not be construed as tax or financial advice.

What is a real estate developer?

• The building or remodeling of residential, commercial, retail, or industrial properties is the responsibility of a real estate developer. These initiatives can repurpose unused land or deteriorating structures into new commercial and residential properties.

Developers then take over the project’s construction and sale.

A job could last for years with all the real estate development stages. 

• Purchasing of Property
• Result of market research
• Permissions and approvals
• Financing and analyzing the financial situation of the project

How to become a real estate developer with no money?

The general public has the impression that developers are all highly affluent individuals. Is this what happened? Engelstad called the claim “completely false.”

Even though developers typically invest some of their own money, commercial loans account for most of the financing for a project, and investors are responsible for the majority of the equity. 

To become a real estate developer with no money, you’ll need to build partnerships with these groups.

How much does a Real Estate Developer make?

A Real Estate Developer in the United States can expect to make an average yearly salary of $73,875 per year.

That works out to about $35.52 an hour if you require a simple payment calculator. This equates to $1,421 per week or $6,156 per month in salary.

Because the median salary for a Real Estate Developer is so comprehensive (up to $54,500), it’s safe to assume that there are numerous ways to progress and earn more money based on experience, location, and education.

How much tax will you have to pay as a Commercial Real Estate Developer?

Individuals in this tax bracket are expected to pay an average of 22% in federal taxes in 2018. Commercial Real Estate Developers may earn an annual take-home pay of $67,448 after federal tax deductions of 22%, which equates to $2,810 in take-home pay every paycheck.

How much does a Commercial Real Estate Developer make?

A commercial real estate developer’s annual pay in the United States is, on average, $81,266. Commercial Real Estate Developers in San Francisco earn the most at $81,266 per year, precisely the same as the national average.

Bottom line

The field of real estate development pays highly. On the other hand, salaries might vary substantially depending on your level of expertise and the nature of your work. The basic median wage of a residential project analyst is $82,600 per year for a residential project analyst.

Some people are self-employed entrepreneurs, while others work for a real estate company for property development. Many specialists work with them because of the high level of risk and the increased workload level.

According to our research, a bachelor’s degree is required for most Real Estate Developers. We discovered that 13.1 percent of Real Estate Developers had master’s degrees. It is possible to become a Real Estate Developer even if you only have a high school diploma or GED.

The annual salary for a commercial real estate developer is $95,253. Real estate developers should have a degree in a related profession and at least five years of experience, even if they are not certified. A real estate developer can benefit from various communication, leadership, problem-solving, interpersonal relationships, analytical thinking, and public speaking abilities. Additionally, you must be able to decipher and comprehend blueprints.

The average hourly wage is $37.58; did you know that? Annually, that works out to be $78,166.

As of 2018, there will be 26,500 jobs in this field in the United States by 2028.

Sheena Whitlock

Sheena Whitlock, a property expert, and blogger with over 15 years of experience in the field. The knowledge and skills Sheena has acquired during her career have given her invaluable insight into the property management business.

She has done her Property Development BSc (Hons) from the University of Portsmouth and completed her Master’s Degrees in Property Management from the University of Chicago.

As a professional, she has spent time working for various companies as a property management officer and currently works at Asset Info Hub where she shares her knowledge and experience on various property matters with people around the world, questioning their queries via blogging and virtual consulting services.

How Much Do Real Estate Developers Make?

Real estate development is a fascinating and dynamic field that encompasses a wide range of activities and responsibilities. As a result, real estate developers can make a decent living. However, their compensation is dependent on the success of the project and the structure of the deal. Here is a closer look at the responsibilities of a real estate developer and how much they make.

Table of Contents

How Much Do Real Estate Developers Make?

Real estate developers make money in many different ways. A developer could be a single individual or a large firm, which will impact their compensation. Developers typically earn a percentage of the profits of the properties they develop, which can vary depending on how much equity they have in the project.

Some developers use their own funds to finance projects, while others pool capital from other investors. So, the more of their own money they put in, the larger the percentage of the profit they will see at the end of the deal.

They typically charge a developer fee of around 5-10% of the project’s profits and can earn an even larger percentage if they have equity. So, if the project eventually sells for $1million, they will earn $50,000 – $100,000 in development fees and earn an additional percentage of the profits relative to their stake.

If the developer is an individual, they can pocket their profits or split them with any partners. If the developer is a company, each team member will typically be paid a salary and may earn additional bonuses depending on their involvement in the project.

What Do Real Estate Developers Do?

Real estate developers are responsible for the planning and executing real estate projects, including everything from financing to overseeing construction to the marketing and sales of the finalized property. Some developers even stay on after the project is complete and work as property managers.

The exact duties of a real estate developer can vary depending on the circumstances of the deal. For instance, a shopping mall will require different responsibilities than an apartment complex. But in both scenarios, the developer will be responsible for overseeing the entire project and making executive decisions to ensure that their vision is brought to life and the deal is ultimately profitable.

A developer may handle each responsibility themselves, or they may work with a team and each focus on one aspect of the project. These responsibilities include acquiring the land, obtaining financing, budgeting, hiring contractors and other employees, creating a timeline, interfacing with other key decision-makers, and marketing the property for sale or lease once the project is complete.

Average Real Estate Developer Salary in the US

According to PayScale, the average base salary for a real estate developer in the US is $77,000 per year. However, compensation can vary greatly depending on how many years of experience you have and your role in the project.

For instance, the base salary for a real estate development manager is between $61,000 and $139,000, with an average of $100,000 per year. A general project manager’s salary is between $55,000 and $122,000 per year, with an average of $80,000. A project manager is similar to a real estate developer; however, they are typically more focused on managing the construction and not as much on the financing and marketing side.

According to GlassDoor, real estate developers typically earn an additional $15,254 in bonuses, increasing their average annual pay. It’s such a wide-ranging position with the ability to earn extra bonuses and commissions that it can be challenging to estimate an average income accurately. But in general, the average real estate developer will earn somewhere in the ballpark of $75,000 to $95,000 per year, with some making well over $200,000.

Do Real Estate Developers Make a Lot of Money?

Real estate developers do have the potential to earn a lot of money, but it all depends on the individual. If you work at an established firm and manage to climb the corporate ladder, you can expect to earn a high salary and receive regular bonuses.

But, if you decide to go the independent route and start your own company, it can be a bit riskier. While you have the potential to keep more of your profit, your compensation is dependent on the project’s success. Many variables can impact your project’s profit margins, such as construction delays and changes in the market.

Perhaps an area was up and coming when you first purchased the land, but by the time you complete the project, there is a slump in demand, making it difficult to find a buyer. If you have to sell at a loss, it will come out of your end and may bankrupt your company, depending on how much debt you took to finance the project.

So, while there is the potential to earn six-figure checks or higher on a single deal, you should also consider the risks of developing a real estate project.

Is This the Right Career for You?

Real estate development can be a lucrative and rewarding profession for those with experience and passion. It offers the potential to make a great living while also improving the community by creating necessary housing and commercial buildings. Real estate development can be a great career path for those interested in real estate who want to be involved in multiple aspects of the field, from financing to construction. But it also takes time and experience to fully master. It can be a challenging and somewhat risky endeavor without the right connections and understanding of the business.

As the developer, you are responsible for overseeing the project from start to finish. So, if anything goes wrong, you are the first to blame. Many real estate developers choose to work for an established firm to gain experience. Others start in other aspects of the real estate industry, such as construction or working as an agent to gain experience before venturing into development.

If you have the passion and determination, it can be a rewarding career path. But keep in mind that it may take 10 to 15 years of experience to take the lead as a developer, so it may not be the best career for you if you don’t have the drive or patience.

How To Become A Property Developer

Career Advice

Aug 22, 2017

Read time: 7 mins

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65 cities in Africa alone have a population higher than 1 million people¹ meaning the demand for quality property development and investment is overtaking the supply of qualified Property Developers, also referred to as Real Estate Developers.

Property development is an industry that requires you to use a combination of your property knowledge – often obtained from a property development course – an entrepreneurial mindset and strategic abilities to achieve success.

What are the key responsibilities of a Property Developer when investigating a property development opportunity?

Property Developers are responsible for identifying opportunities in the property market by improving the state of a property and subsequently increasing it’s market value. As a Property Developer, some of your responsibilities would include:

• Researching land and existing property opportunities in your market and evaluating whether or not a development project would be feasible and profitable
• Identifying an opportunity and then proposing a property development plan – detailing the best use for the property and outlining the project specifics. This ultimately means that as a Property Developer, you need to be skilled in project management, as well as retain a good understanding of the industry
• Ensuring that your venture is legally sound and compliant. You’d need to ensure you have all permissions and permits before beginning your property development project
• Working with architects, construction managers and crews, and investors to ensure that your property development opportunity reaches its full potential and presents an impressive return on investment

What is the career path of a Property Developer?

Property development presents an interesting proposition for those who are curious about the industry.

Being a Property Developer can be undertaken as a full-time career but it can also exist in addition to another profession. In other words, you can use property development as a way to subsidise your existing salary with the right skills and knowledge.

If you’re interested in committing yourself to property development as a long-term profession there are a number of related fields that will aid you in becoming a Property Developer:

• Real Estate Agent: Gaining the necessary knowledge about the property industry and market through experience in real estate will provide you with the right foundation to go from selling property, to developing it
• Construction Project Manager: Construction Project Managers are experts at dealing with project lifecycles that relate to property – responsible for the execution of a property development opportunity. Experience in this field will aid you in moving towards the financial side of a property development project
• Starting your own property development business: Property Developers are entrepreneurs at heart. One way to ensure you’re able to make property development your full-time career is to build your own business from the ground up

Related Content: Tips for Becoming a Property Developer

If you’re more interested in how property development can be used as a way to build your asset portfolio and subsidise your income, you’ll need the following:

• Capital or financial backing: Property development is not a cheap endeavour. You’ll need an injection of capital to get your identified property opportunity off the ground. You’ll also need to have a good understanding of finance if you want to get involved in property investment because it will be a big portion of your responsibility in terms of the project and its stakeholders

• Sufficient property knowledge: It’s not enough to have the money to develop property – you need to have the right industry knowledge to be able to identify opportunities that’ll yield returns worthy of the investment you make. One way to ensure you’re prepared to make the most of Africa’s third largest industry is to do a property development course

What is the potential salary for a Property Developer?

Because property development can be undertaken as its own profession or as a side project, the “salary” for a Property Developer is very dependent on the property investment.

This means investing in increased risk will lead to higher reward type properties seeing a significantly higher return on investment. The profit to be made in property development is completely dependent on the venture that is undertaken as well as the success of the project and is less certain or fixed than traditional jobs.

Click on a country to see what you can expect to get paid as a Property Developer in either South Africa, the United Kingdom or the United States of America:

• RSA
  

  Entry-Level	R196,000
  Mid-Career	R407,000
  15 Years Experience	R470,000

• UK
  

  Entry-Level	£27,000
  Mid-Career	£53,000
  15 Years Experience	£89,000

• USA
  

  Entry-Level	$52,147
  Mid-Career	$86,844
  15 Years Experience	$127,842

What are the education and training requirements for a Property Developer?

Depending on your interest in property development, you can either pursue property investment knowledge from a tertiary level or as an additional skill set through a property development course:

• A Bachelor of Science in Property: A number of universities offer entire degree programmes aimed at giving students a broad understanding of property related disciplines including finance, economics and property law

• An online property development course: For those interested in property investment but want to use the opportunity to build their personal asset portfolio, a property development course can provide exactly the right amount of knowledge and exposure to turn property into profit

What skills do you need to advance in your career as a Property Developer professional?  

¹Business Tech

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OOO SPECIALIZED ZASTROISCHIK “UPSK ZHILSTROY”, TIN 560

69, Orenburg region, Orenburg – average salary, income, expenses, profits, taxes and company contributions

Primary activity

Activities of the customer-developer, general contractor / OKVED 71.12. 2

Includes:
– engineering and technical design, i.e. the application of engineering and technical rules for the design of machines, materials, tools, structures, technologies, as well as consulting in the field of: mechanical engineering, industrial processes and equipment: design, associated with the construction of engineering structures, including hydraulic structures, transport construction, the development of water supply projects, the development of projects for industrial processes and industries related to electrical engineering, electronic engineering, mining, chemical technology, mechanical engineering, as well as in the field of industrial construction, systems engineer and safety
– development of projects for air conditioning, refrigeration, sanitary engineering and monitoring of environmental pollution, building acoustics, etc. activity
Also includes:
– energy services
Does not include:
– exploration drilling
– development or release of necessary software
– activities of consultants in the field of computer technology
– technical testing, research
– research and development
– industrial design
– aerial photography

This type of activity is still being carried out

Learn more about OKVED 71.12.2

Additional activities

Lease and management of own or leased non-residential real estate

Additional activity, OKVED 68.20.2

Includes:
– use of personal or rented property
– rental of entire houses, individual apartments, non-residential commercial premises, such as warehouses, showrooms, restaurants, and land plots
– offer for rental of houses with with and without furniture for various periods: as a rule, from a month to a year
– construction of premises for own use
– use of parking lots for mobile homes.

Learn more about OKVED 68.20.2

Construction of residential and non-residential buildings

Additional activity, OKVED 41.20

Includes:
– construction of houses (single and multi-apartment), multi-storey residential buildings, including on individual projects
– construction of additional outbuildings, buildings for housekeeping – pantries, sheds
– construction of buildings not designed for living. This list consists of public, educational, medical institutions, plants and factories, garages and workshops, restaurants, cafes, hotels, baths, sports facilities, airport and spaceport buildings, warehouses, premises used for religious events
– installation and assembly of structures at sites, including log cabins and panels
– repair, renovation and reconstruction of residential and commercial buildings, houses, outbuildings and sports facilities.
Excludes:
– industrial facilities, except for buildings
– engineering and architectural work
– construction project management.

Learn more about OKVED 41.20

Purchase and sale of own non-residential buildings and premises

Additional type of activity, OKVED 68.10.22

Includes:
– purchase and sale of own real estate: multi-apartment buildings, residential buildings, apartments, non-residential buildings and premises, including exhibition halls, warehouses, shops and trading places , land plots
Also includes:
– division of real estate in the form of land into plots without their improvement

Learn more about OKVED 68.10.22

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Average salary 08 “investment for non-current assets” \ ConsultantPluss

Order of the Ministry of Agriculture of Russia dated 13. 06.2001 N 654
“On approval of the Chart of Accounts for accounting of financial and economic activities of enterprises and organizations of the agro-industrial complex and Methodological recommendations for its application”

ACCOUNT 08 “INVESTMENTS IN NON-CURRENT ASSETS”

Account 08 “Investments in non-current assets” is intended to summarize information about the organization’s costs in objects that will subsequently be accepted for accounting as fixed assets, land plots and nature management objects, intangible assets, as well as on the costs of forming the main herd of productive and working livestock (except for poultry, fur-bearing animals, rabbits, families of bees, service dogs, which are accounted for as part of the funds in circulation).

Investments in non-current assets are associated with:

– capital construction in the form of new construction, as well as reconstruction, expansion and technical re-equipment of existing fixed assets of the organization. These works (except for new construction) lead to a change in the nature of the objects on which they are carried out, and the costs incurred in this case are not the costs of the reporting period for their maintenance;

– acquisition of buildings, structures, equipment, vehicles, agricultural machinery and other individual items (or parts thereof) of fixed assets;

– acquisition of land plots and nature management facilities;

– acquisition and creation of intangible assets;

– acquisition of productive and working cattle of the main herd;

– formation of productive and working livestock of the main herd by transferring reared young animals to the main herd;

– establishment and cultivation of perennial plantings.

The purposes of accounting for investments in non-current assets are:

– timely, complete and reliable reflection of all expenses incurred during the construction of objects by their types and objects accounted for;

– ensuring control over the progress of construction, commissioning of production facilities and fixed assets;

– correct determination and reflection of the inventory value of fixed assets put into operation and acquired, land plots, nature management objects and intangible assets.

Investments in non-current assets are accounted for on account 08 “Investments in non-current assets” at actual costs.

In the debit of account 08 “Investments in non-current assets” reflect the actual costs of the developer, included in the initial cost of fixed assets, intangible assets and other relevant assets.

The cost of fixed assets, intangible assets, etc., executed in the prescribed manner, is written off from account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets”, 03 “Profitable investments in tangible assets”, 04 “Intangible assets “, etc.

At the end of the reporting period, the balance of account 08 shows the costs of unfinished capital investments.

Sub-accounts can be opened for account 08 “Investments in non-current assets”:

– 08-1 “Acquisition of land plots”;

– 08-2 “Acquisition of objects of nature management”;

– 08-3 “Construction of fixed assets”;

– 08-4 “Acquisition of fixed assets”;

– 08-5 “Acquisition of intangible assets”;

– 08-6 “Transfer of young animals to the main herd”;

– 08-7 “Acquisition of adult animals”;

– 08-8 “Establishment and cultivation of perennial plantings”;

– 08-9″Acquisition of fixed assets under leasing”;

– 08-10 “Other investments”.

Sub-account 08-1 “Acquisition of land plots” takes into account the costs of acquisition of land plots by the organization.

Sub-account 08-2 “Acquisition of objects of nature management” takes into account the costs of the organization’s acquisition of objects of nature management.

Sub-account 08-3 “Construction of fixed assets” takes into account the costs of erecting buildings and structures, installation of equipment, including the cost of equipment transferred for installation, and other expenses provided for by title lists, estimates, cost estimates.

Accounting for the cost of construction work and installation of equipment depends on the method of their production – contract or economic.

In case of a contract construction method, construction work and equipment installation completed and executed in the prescribed manner are reflected with the developer – customer on the debit of account 08 “Investments in non-current assets” in correspondence with the credit of account 60 “Settlements with suppliers and contractors” at the contractual cost construction and installation works on paid or accepted for payment invoices of contractors without value added tax. Value added tax is credited to the debit of account 19-1 “Value added tax on the acquisition of fixed assets” in correspondence with the credit of account 60 “Settlements with suppliers and contractors”.

Accounting for the cost of construction and installation work carried out by the economic method, the developers are on the following items: materials; basic wages with deductions for social needs; costs for the operation of construction machines and mechanisms; overheads; other costs.

Under the item “Materials” reflect the cost of materials actually used for construction and installation work, including building structures and parts.

Under the article “Basic wages with contributions for social needs” take into account the basic wages and other payments to employees directly engaged in construction and installation works (except for those working on construction machines and mechanisms and their maintenance), and employees engaged in the delivery of materials from the warehouse to the place of use if the delivery was made manually. This article also includes social taxes (contributions to the social insurance fund, to the pension fund and to the health insurance fund).

The item “Expenses for the operation of construction machines and mechanisms” takes into account the costs: for wages with deductions for social needs of employees involved in the management of construction machines and mechanisms and their maintenance; for electricity, fuels, lubricants and auxiliary materials; depreciation deductions; rent for rented machines and mechanisms and other costs associated with the operation of machines and mechanisms at the construction site.

On a monthly basis, the actual expenses for the maintenance and operation of construction machines and mechanisms, based on the data of primary documents, are written off in a comprehensive article directly to the relevant construction objects: for those machines and mechanisms for which cost accounting is carried out by their types or groups, by distribution in proportion to the estimated the cost of worked machine shifts at the respective facilities.

The item “Overheads” reflects the general expenses for construction (including additional wages and contributions for social needs of employees) in the share attributable to this object. Developers keep records of overhead costs for construction and installation work on a separate analytical account.

The item “Other expenses” includes the cost of services of own and borrowed transport and tractors for moving soil, transporting materials from the on-site warehouse to the place of their laying, etc.

The costs of design and survey work performed both on their own and with the involvement of specialized design and survey organizations, including design supervision of design organizations, are attributed to specific construction objects in the amount paid by the relevant organizations for these works, or in the amount of actual expenses incurred by their departments. In cases where these costs relate to several construction (reconstruction) objects, they are distributed in proportion to the estimated cost of the objects put into operation.

Other construction (reconstruction) costs provided for by estimates are taken into account on sub-account 08-3 by type of cost. These costs are included in the inventory value of objects for their intended purpose. If they relate to several objects, they are distributed in proportion to the estimated cost of the objects being built or reconstructed. The corresponding share of these costs is added to the recorded direct costs only for those facilities for which construction or reconstruction is completed. Other costs for objects put into operation in parts are included in their inventory value according to the standards based on the ratio of appropriations for these purposes according to the construction estimate and the total estimated cost of the objects being built. In this case, after the construction is completed and the actual amounts of other capital costs are determined, the inventory value of the commissioned facilities is recalculated.

The initial cost of fixed assets also includes the costs provided for in the summary estimates for construction and summary estimates and financial calculations of the building organization. In particular, the costs of:

– training of operational personnel for work in a newly introduced organization;

– conservation of unfinished objects at the expense of appropriations for capital construction;

– prospective works not related to specific construction projects (surveying, exploration, etc.).

In analytical accounting, separate accounting should be organized with the subsequent assignment of capital investment objects completed by construction.

Sub-account 08-4 “Acquisition of fixed assets” takes into account the costs of acquiring equipment that does not require installation, machines, tools, inventory and other fixed assets. Tools and inventory (useful life less than 12 months) provided for in construction estimates and intended as a set for objects being put into operation are included in the composition of materials (sub-account 10-11 “Inventory and household supplies”) with a decrease in the cost of objects.

The cost of equipment that does not require installation, tools and inventory intended for commissioned objects as the first sets is included in the volume of capital investments and is accounted for on account 08 according to the suppliers’ invoices accepted for payment after receipt of this equipment, tools and inventory at the destination, posting by the recipient and delivery in accordance with the established procedure for safety to financially responsible persons.

Transportation and other costs associated with their delivery are added to the cost of purchased fixed assets, tools and inventory (expenses for installing equipment requiring installation are reflected as installation costs).

Costs for the acquisition of machinery, equipment and other items of fixed assets that do not require installation are taken into account separately: the purchase price (sales price of the supplier) without VAT, transportation and other costs associated with the acquisition of fixed assets.

The inventory value of machinery and equipment is formed from the purchase value on the accounts of suppliers, not including the cost of spare parts, spare tires and tools (useful life less than 12 months) received with them, which come to account 10 “Materials”, subaccount 11 “Inventory and household supplies”.

Sub-account 08-4 “Acquisition of fixed assets” also takes into account the actual costs of acquiring buildings and structures that were in operation from other organizations and persons. Acquired buildings and structures that were in operation are accounted for in the debit of account 08 “Investments in non-current assets”, subaccount 4 “Acquisition of fixed assets” in correspondence with the credit of account 76 “Settlements with various debtors and creditors” in the amount of actually paid or subject to payment without value added tax, and the amount of VAT is debited to account 19″Value added tax on acquired assets”, sub-account 1 “Value added tax on the acquisition of fixed assets” in correspondence with the credit of account 76 “Settlements with various debtors and creditors”.

This sub-account takes into account fixed assets received under a long-term lease with the right to purchase and under leasing, if under the leasing agreement the leasing objects are on the lessee’s balance sheet.

Upon receipt of the leasing object, account 08 “Investments in non-current assets”, subaccount 4 “Acquisition of fixed assets” in correspondence with the credit of account 76 “Settlements with various debtors and creditors”, subaccount “Leasing obligation” is debited to the balance of the lessee leased property without VAT. The amount of VAT is recorded in the debit of account 19″Value added tax on acquired assets”, subaccount 1 “Value added tax on the acquisition of fixed assets” in correspondence with the credit of account 76 “Settlements with various debtors and creditors”, subaccount “Leasing obligation”.

As the due date for payment for leased property, the sub-account “Lease obligation” is debited for the amount of payments and the sub-account “Lease payments” is credited.

The actual value of the leased property is credited to the debit of account 01 “Fixed assets”, subaccount 9″Fixed assets received under leasing and rent” from the credit of account 08 “Investments in non-current assets”, sub-account 4 “Acquisition of fixed assets”.

The organization (leasing company) acquired fixed assets at the expense of its own and borrowed funds, for subsequent transfer to leasing or long-term lease with the right to purchase, also takes into account on subaccount 08-4.

The actual costs of acquiring fixed assets intended for leasing at the expense of own and borrowed funds without VAT are reflected in the debit of account 08 “Investments in non-current assets”, subaccount 4 in correspondence with the credit of account 60 “Settlements with suppliers and contractors “, and VAT is charged to the debit of account 19″Value added tax on acquired assets”, subaccount 1 “Value added tax on the acquisition of fixed assets” from the credit of account 60 “Settlements with suppliers and contractors”.

An object of fixed assets intended for transfer to a long-term lease or lease is credited to the debit of account 03 “Profitable investments in material assets” from the credit of account 08 “Investments in non-current assets”, subaccount 4 “Acquisition of fixed assets”.

If, under a lease or leasing agreement, property is transferred to the balance of the lessee (lessee), then this property is debited from the credit of account 03 “Profitable investments in material values” in correspondence with the debit of account 76 “Settlements with various debtors and creditors”.

This sub-account also takes into account fixed assets received free of charge from other organizations and individuals. The debit of sub-account 08-4 takes into account fixed assets received free of charge at market value as of the date of acceptance for accounting in correspondence with the credit of account 98 “Deferred income”. From sub-account 08-4 write off to the debit of account 01 “Fixed assets”. Monthly, as depreciation deductions are accrued, a write-off is made from account 98 “Deferred income” to the credit of account 91 “Other income and expenses”, sub-account 1 “Other income”. Similarly, they do with fixed assets purchased and built at the expense of budgetary funds, only account 98 “Deferred income” is credited in correspondence with the debit of account 86 “Target financing”.

Sub-account 08-5 “Acquisition of intangible assets” takes into account the costs of acquiring intangible assets. Objects of intangible assets are credited to the debit of account 04 “Intangible assets” from the credit of subaccount 08-5 in the amount of actual acquisition costs.

Sub-account 08-6 “Transfer of young animals to the main herd” takes into account the costs of growing in the organization of young productive and working cattle transferred to the main herd. The actual cost of young productive and working cattle transferred to the main herd is determined during the year according to the planned accounting cost of live weight. At the end of the year, when the actual cost of live weight is determined, an adjustment is made by means of an additional or reversal entry, depending on the deviation of the actual cost of live weight from the planned accounting cost. The cost of young cattle transferred to the main herd is determined based on the cost of one kilogram of live weight multiplied by the actual live weight of young animals transferred to the main herd, which is reflected in the debit of sub-account 08-6 in correspondence with the credit of account 11 “Animals for rearing and fattening “, subaccount 1 “Young animals”. The young animals transferred to the main herd are credited to the debit of account 01 “Fixed assets”, subaccount 4 “Working and productive livestock” from the credit of subaccount 08-6 “Transfer of young animals to the main herd”.

Sub-account 08-7 “Acquisition of adult animals” takes into account the cost of adult productive and working cattle purchased to replenish the main herd and received free of charge, including the cost of its delivery.

Acquired adult animals to replenish the main herd are credited to sub-account 08-7 “Acquisition of adult animals” at the actual cost of their acquisition, including delivery costs.

Adult animals received free of charge are accepted for accounting at market value, to which are added the actual costs of delivering them to the organization.

Adult animals purchased for a fee are reflected in the debit of account 08 “Investments in non-current assets” in correspondence with the credit of account 60 “Settlements with suppliers and contractors” or account 76 “Settlements with various debtors and creditors” in the amount of the actual cost of animals without VAT, and the amount of VAT is included in the debit of account 19-1 “Value added tax on the acquisition of fixed assets” in correspondence with the credit of accounts 60, 76. non-current assets” in correspondence with a loan: for productive livestock – accounts 91 “Other income and expenses”, sub-account 1 “Other income”; for working cattle – accounts 98 “Deferred income”, sub-account 2 “Grants”.

The costs of completed operations of the formation of the main herd are written off from account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets”, sub-account 4 “Working and productive livestock”.

Sub-account 08-8 “Establishment and cultivation of perennial plantings” takes into account the costs of establishing and growing perennial plantations.

Analytical accounting of the costs of establishing and growing perennial plantations is carried out by types of perennial plantations, years of planting and their location. For example: the cost of growing an apple orchard planted in 1999 in team No. 4; expenses for laying and growing a plum orchard planted in 2000 in department No. 5, etc.

Since the technology and nature of production processes during the laying and cultivation of perennial plantations are similar to the general production technology in the plant growing industry, the costs for this sub-account are taken into account under the same items as for the plant growing industry.

A feature of accounting for investments in non-current assets for laying and growing perennial plantations is that on account 08 “Investments in non-current assets” they are taken into account only within one calendar year, although the process of growing plantations lasts several years, that is, only costs are taken into account, produced in the current calendar year (from January 1 to December 31 of this calendar year).

At the end of the calendar year, the costs of the current year for the establishment and cultivation of perennial plantings are debited from the credit of account 08 “Investments in non-current assets”, subaccount 8 “Establishment and cultivation of perennial plantations” to the debit of account 01 “Fixed assets”, subaccount 5 “Perennial plantations” “, where a group of analytical accounts by types of young perennial plantations has been opened for these purposes. Consequently, at the end of 2001, the costs from the analytical sub-account 08-8 – the costs of growing a plum orchard planted in 2000 in branch N 5 – from account 08-8 will be debited to account 01-5 to the analytical account “Young plum orchard planted in 2000 in branch no. 5.

An analytical entry for the amount of next year’s expenses for growing a plum orchard will be made after the end of 2002, etc., that is, annually the costs of caring for young plantations from account 08 “Investments in non-current assets” will be added to the cost of young plantations, recorded on account 01 “Fixed assets” in the analytical accounts of young perennial plantations.

In some cases, from the young of perennial plantations, even before the onset of the period of normal fruiting, a crop is obtained. Harvesting costs are additionally taken into account as part of the cost of caring for young plantations on the debit of subaccount 08-8, and the resulting products are debited to account 43 “Finished products”, subaccount 1 “Crop production” from the credit of subaccount 08-8 at prices of possible sale.

Sub-account 08-9 “Other investments” takes into account the costs of radical land improvement. The group of costs for radical land improvement includes non-inventory costs (not associated with the creation of structures), drainage, irrigation and other reclamation work, cultural and technical measures for surface improvement of land (planning of land plots), uprooting areas for arable land, clearing fields from stones and boulders (cutting hummocks, clearing thickets, cleaning reservoirs, etc. ).

Accounting for the cost of radical land improvement is carried out according to the elements and cost items established for crop production.

Analytical accounting of costs for radical land improvement is carried out for each land plot separately, indicating the volume and cost of each type of reclamation and cultural work (drainage, irrigation, uprooting shrubs, cutting tussocks, clearing the land from stones and boulders, etc.). At the end of the year, all costs are written off from account 08 “Investments in non-current assets”, sub-account 9″Other investments” to account 01 “Fixed assets”.

Sub-account 08-9 “Other investments” also takes into account the costs associated with the construction of temporary title and non-title structures. Organizations – developers keep records of overhead costs for construction in an economic way by cost groups, in particular:

– administrative and economic costs for construction;

– expenses for maintenance of construction workers;

– expenses for organization of work at construction sites.

Overhead costs are distributed on a monthly basis for the production of construction and installation works or for the costs of erecting temporary (non-title) buildings and structures in proportion to direct costs.

Accounting for non-capital works is carried out according to analytical accounts:

– 1 “Construction of temporary (titular) structures”;

– 2 “Construction of temporary (non-title) structures”;

– 3 “Other non-capital works”.

Costs for the erection of temporary (title) buildings and structures, as well as the performance of work on the re-equipment of other buildings and structures for construction maintenance are reflected separately in the case when the settlements of the construction organization with the developer are carried out as a whole for the completed complex (finished building products) from taking into account the costs of erecting temporary (title) buildings and structures included in the cost of construction and installation works and object estimates. In the process of performing work, a construction organization can reserve on account 96 “Reserves for future expenses” at the expense of the cost of construction and installation works funds for the construction of temporary (titular) buildings and structures.

If the costs associated with the construction of temporary (titular) buildings and structures are not included in the estimated cost of construction and installation works and object estimates, and they are calculated separately, then the cost accounting for such objects is kept by construction organizations on account 20 “Basic production” in general. After acceptance, these objects are reflected on the balance sheet of the developer.

The cost of objects that are not related to fixed assets are included in temporary (non-title) structures on the debit of sub-account 10-11 “Inventory and household supplies”. The cost of temporary (non-title) structures, buildings, fixtures and devices (on-site storerooms, offices of work foremen, sheds, distributing steam, air and electricity within the working areas, etc. ) as they are accepted are included in temporary (non-title ) structures under sub-account 10-11 “Inventory and household supplies”. Upon completion of the work, the cost of demolition and dismantling of objects stopped by construction, developers performing work in an economic way, are attributed to the cost of work as part of overhead costs.

For non-capital works, the costs of which are taken into account on the analytical account 2 “Construction of temporary (non-title) structures”, reflect only direct costs without overhead costs. The costs recorded on analytical accounts 1 “Construction of temporary (title) structures” and 3 “Other non-capital works” are reflected taking into account overhead costs.

As non-capital works are completed (commissioning of temporary title and non-title structures), they are written off from account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets” or account 10 “Materials”, subaccount 11 “Inventory and household supplies “and at the same time, depreciation is charged on fixed assets on the credit of account 02 “Depreciation of fixed assets” and the debit of account 96 “Reserves for future expenses” – when creating a reserve for the construction of temporary structures.

The same sub-account reflects the costs of unrealized and finally terminated construction, subject to write-off in accordance with the established procedure, as well as the costs of demolition, dismantling and protection of facilities.

Organizations-developers write off these costs as a decision is made to write them off. Until the issue of writing off is resolved, they are taken into account on sub-account 08-9 “Other investments” in the general manner.

Costs for temporarily or permanently stopped construction, for which there is no decision to write off, are allocated in analytical accounting under subaccount 08-9 “Other investments” in a special group.

The balance of account 08 “Investments in non-current assets” characterizes the amount of the organization’s capital investments in construction in progress, as well as pending transactions for the acquisition of fixed assets, intangible and other non-current assets, including the costs of forming the main herd and laying, growing perennial plantations.

Analytical accounting on account 08 “Investments in non-current assets” is carried out for the costs associated with the construction and acquisition of fixed assets – for each object under construction or acquired. At the same time, the construction of analytical accounting should provide the possibility of obtaining data on the costs of:

– construction work and reconstruction; drilling operations; installation of equipment requiring installation; purchase of equipment that does not require installation, as well as for tools and inventory provided for by estimates for capital construction; purchase of equipment requiring installation, but intended for stock; acquisition of buildings and structures; laying and growing perennial plantations, carrying out cultural and technical work on lands that do not require drainage; design and survey work, other capital investment costs;

– for the costs associated with the formation of the main herd, – by animal species (cattle, pigs, sheep, horses, etc. ), in some cases – and by breed;

– for costs associated with the acquisition of intangible assets – for each acquired object.

ACCOUNT 08 “INVESTMENTS IN NON-CURRENT ASSETS”

CORRESPONDES WITH ACCOUNTS:

9089eight

Posting of temporary (non-title) structures

Account 07 “Equipment for installation”
Section 2. Inventories

Requirements for the developer under 214-FZ in 2021 – Kontur.Registry – SKB Kontur

In the article, we will analyze what rules developers must follow in order to sell apartments in housing under construction.

Federal Law No. 214-FZ explains in detail how to sell real estate in houses under construction. It protects equity holders – buyers of housing under construction – from fraudsters and guarantees a refund if the developer does not fulfill its obligations. In the law, the government prescribed what requirements developers must meet, as well as how they must conduct such transactions.

214-FZ is applied if the developer plans to sell at the construction stage:

• apartments in an apartment building,
• townhouse, which consists of at least three blocks.

The law does not apply to individual construction, for example, private houses.

Requirements for the developer under 214-FZ

In order to sell apartments in housing under construction, the developer must obtain a special permit from the Ministry of Construction and Housing and Communal Services. Ministry of Construction checks:

What is the legal form of the developer company

Permission is issued only to business companies: limited liability companies (LLC) or joint-stock companies (JSC). The Ministry will refuse non-profit organizations or individual entrepreneurs.

Who holds management positions in the company

Persons who:

• have outstanding or unexpunged convictions for economic crimes or crimes against authority,
• were sole owners of a company that went bankrupt less than five years ago,
• owned at least 5% of the shares of a company that went bankrupt less than three years ago,
• have been disqualified and are not allowed to engage in such activities.

Is there a design declaration

To confirm that there are no violations in the project, the developer must attach the conclusion of a special examination to the declaration.

How much money does the developer have

The company must have its own funds, in the amount of more than 10% of the project cost of construction. Such funds include not only money in accounts, but also real estate, land plots or receivables.

Also, before obtaining a permit, the developer must open an account with an authorized bank. He must put 10% of the design cost of construction into the account. If he doesn’t have that kind of money, he can take out a loan. The loan amount must be more than 40% of the project cost.

The Ministry of Construction will not issue a permit if the company:

• has not yet paid for previously taken credits, loans or loans,
• issues any securities other than shares,
• pledged her property to secure obligations,
• participates in bankruptcy proceedings,
• suspended activities by court order,
• did not fulfill the contract or agreement after winning the purchase and was included in the Register of Unscrupulous Suppliers (RNP),
• failed to pay taxes, fees or other government payments on time.

What experience does the builder have

The developer must participate in the construction of apartment buildings for at least three years. During this time, he must build at least 5,000 m2 of housing. The Ministry takes into account objects built by related organizations, as well as projects in which the developer was a technical customer or general contractor.

Who owns the building land

The developer must own or lease or sublease the building site.

Builder’s obligations during construction

The state imposes restrictions on developers even after they have received permission to build and sell apartments to equity holders. 214-FZ sets out the rules that each company must comply with in order to obtain permission to put a house into operation.

Builder Qualification

The builder may carry out construction work independently. However, to perform some work, you need a special permit from the self-regulatory construction organization (SRO). If the company does not have permission, it can involve a technical customer with the necessary qualifications to work.

Loans during construction

The only loan a company can take is a targeted loan to finance ongoing construction. Such a loan cannot be more than 20% of the project cost. And the interest rate in it cannot differ from the key rate of the Central Bank by more than 2%. For example, in January 2021, the key rate is 4.25%. This means that the developer cannot take out a loan at a rate higher than 6.25%.

Financial condition of the developer

The company cannot issue bonds to raise funding. Also, she cannot act as a guarantor or pledge her property.

Settlements with counterparties and equity holders

Before the start of sales, the developer must select an authorized bank and open an escrow account with it. It is on it that the money of equity holders will be stored. We talked about how escrow accounts work in a recent article.

All settlements with a technical customer or general contractor must also be made only from accounts in one authorized bank.

Transfers from the developer’s account

The developer can only transfer funds from his account for a few reasons. For example, he can spend money on:

• construction work on site,
• design documentation, engineering survey or expertise,
• construction of engineering networks,
• preparation of urban planning documentation,
• construction loan,
• state duty for registration of an equity participation agreement (DDU),
• taxes, fines, penalties or bank charges.
• employee salaries,
• contributions to the compensation fund,
• refund to equity holders who terminated the contract,
• advertising,
• rent of offices and office equipment for employees.

At the same time, he can only withdraw cash to pay salaries to employees. All other funds can only be transferred from account to account.

Periodic reporting

The developer must publish quarterly and annual accounting reports in the Unified Information System in the field of housing construction (EIHIS). Quarterly reports must be submitted no later than 30 calendar days after the end of the quarter. The deadline for submitting annual reports is longer – 120 days from the end of the year. To confirm the validity of the report, it must be checked by the auditor.

All these rules must be followed before the object is put into operation. As soon as the first shareholder registers the ownership of one of the apartments, the restrictions cease to apply.

Builder’s responsibility

If the developer sold housing under construction without a permit, the interest holder can write an application for a refund. In this case, he can recover not only the cost of the apartment, but also double the interest on the mortgage that he managed to pay.

If the developer attracted funds from equity holders for construction, but did not have the right to do so:

• officials face a fine of 20 thousand to 50 thousand rubles,
• companies — from 500 thousand to 1 million rubles.