Assignment on Communication Systems of ENA Real State Company
This study was done on the basic concept and finding out the condition of our country about the basic present status and prospectus of real estate company and the problems to implement.
Bangladesh is a small and under developed country. It has large population. Maximum people of Bangladesh are middle class and the rest are higher class. But all real state company of Bangladesh does work only for higher class.
As maximum people of Bangladesh are lower and middle class and residential problem is one of the greatest problems in our country. So all real estate company of Bangladesh have to do something for them. In this way all developers can keep a great contribution for the people of Bangladesh.
Bangladesh is a small and underdeveloped country. Real estate business begins from 19th century. Projects of all real estate company of other divisions in Bangladesh have not been found without Dhaka.
ENA Company has been built in 1998. They began their work with one project. Year after year they increase their project. In 1999 their projects number become four and in 2000 it become seven. Now the numbers of their projects are twenty-three.
Present and past activities of ENA:
ENA property was began in 1998. Then they only give add for selling apartment and acquiring land on newspaper. They used to use only one newspaper.
But at present they use various kinds of newspapers, magazine, billboard and other media for add. Marketing department of ENA Company is responsible for selling. It takes advertising and promotional activities to sell their ready apartments. Marketing applies their experiences and find out the way to sell the apartments. They publish add with attractive articles or features to get actual buyers for the apartments. They send letters to their previous buyers including well description of new projects or apartments where the intention is to sell their flats. They appoint sells agent with certain amount of commissions to sell apartments. Generally, they allocated flat at Gulshan, Banani, Cantonment and Dhanmondi. Same as they give adds for acquiring land in newspapers, magazins or other media. Then the landlords who intend to give land to ENA they come and then a stipulation is made up between ENA and landlord. They stipulate that landlord will get 40% and ENA will get 60% of profit.
In future, ENA Real Estate Company will open projects in other divisions such as Khulna, Chittagong and Sylhet. In future they also want to construct building for middle class with medium rate. After all they wants to arrange for people’s dwelling place.
Business management course is designed to help the students learning the technique and acquiring with skills needed effectively in management including planning, organizing, staffing, directing, motivating and controlling, problems in achieving organizational goals in differing managerial environments as a part in different management system. So the prime aim of the regarding report is to practice the skill of reporting.
Now a days real state development financing is a reporting investment in Dhaka. It integrates intensive land uses for office, hotel, retail and residential and recreational purposes. Interviews with five real estate developers in Dhaka, concerned bankers and the documents available from Dhaka chamber of commerce provided necessary information for feasibility.
The report is limited to the performance, problem and prospect of real estate company. The report concerns only the available sources.
Source and method of collecting data:
The report is organized by secondary source of data. Various report’s brochure, catalog, articles and journals and projects profile is used in this regard.
Find out buyer: The objective of every production of a product is to sell to the buyer or customer. But to find out a buyer is a very difficult job, Because everyone may not be a buyer or consumer for a particular product. So, identification of buyer of real-estate business is difficult. Because it includes the parches ability of buyer, wishes to buy and match with the choice.
Price problem: Price is very important to sell a product. Setting a price of a product is a very big problem. If the price is higher than it’s utility, it may be not accepted by the customer. On the contrary, if the price lower, it may cause a loss for the company. So, to set a price favoring customer and the company is very difficult and it is a real problem for real-estate companies are facing now a days.
Choice problem: choice of the real estate company and the customer may be not same. The location, structural design, floor design may vary to customer to customer. According to their choice. So, choice problem is a common phenomenon.
Media selection problem: The object of every production of a product is to select the media for advertisement. But to select media for advertisement is very difficult because every one do not see one channel or media .now a days people of maximum do not like bangle channel. They see various channels of other countries. Every one does not see the same channel. If one see one channel another will see another channel. On the other hand, newspaper. Newspaper selection is one of the 11problems. Maximum higher-class people read various kinds of English newspaper. Every one-do not read same newspaper .if one like one newspaper. Another likes another newspaper. So media selection problem is one of the greatest problem of Real-estate Company.
Advertising cost: to know every customer for their apartment, every real state company uses various kinds of channels or newspaper. As many people like to see other country’s channel or read
Many newspapers, so they give advertisement to those media’s. And those media are very expensive. They cost a lot of money for only add. So that every suitable buyer or customer can see there add for apartments or other actives of real estate company.
Place of apartments: The object tive of every production of a product is to place of apartment for the buyer or customer. But to place apartment is very difficult. Because all customers require that apartment will be uniquely designed with full of light and air surrounding an open ground play. They also want another facilities. E.g. they wants their apartments beside famous institutions.
So, it becomes very difficult for Real-estate Company to select the place for apartment. It is after all a real problem that Real-estate Company’s are facing now a day
Public facilities: as all customer require that apartment will be uniquely designed with full of light and air surrounding an open ground play. They also want other facilities.
E.g. they want their apartments beside school, college, university, market etc. they also want that their apartment will be situated in front any beautiful lack. But to solve their all requirements is very difficult for real-state company.
Government Agency problem:
Land: Rich people of Bangladesh have got individual lands. They have got right to sell their lands to others or they can build up buildings according to their choice. Here the govt. taxes rises in two systems. These are taxes for bare land and taxes for dwelling house that made bricks or tin shed etc.
There is building for construction. There should be a plan in drawing means blue print for construction, which should be sanction by the authority in concern of the govt. The irregularities are that people sometimes disoblige to construct their building. They some how have their buildings constructed violating the govt. order means not according to the sanctioned plan.
Problems: Building with out plan wise is nothing but to fall in danger means the destruction created by earthquake, strong wind blow by tornado or cyclone cause death of people. More over it hampers the free air blowing. Some times dwellers are multistoried building through their house hold dust hither and thither causing environment pollution, which should not be fit for them. Again the govt. falls in danger while it is necessary to gain taxes. According to passed plan they impose an standard of taxes where as in practical vision they find the building more gorgeous that of the sanctioned plan. This is really that time stands an unfortunate situation for the tax department. It is sorry to express that this mal practice is in abundant in our society. This happens due to the irregular activities of political irresponsible leaders giving facilities to general mass for creating their political image for earning some back dour money. They like to posses their iron hand even over the administrative base of the state. As a matter of fact, low and orders sleep in their books and the simple and peace loving people suffer from untold sufferings unnecessary.
Area tax : Any govt. means it is for the people of the people and by the people. We are Bangladeshi. We have the Govt. e.g. Govt. of the people’s republic of Bangladesh. Govt. agency has got different types of activities for the betterment of the people in connection of trade and commerce. Of course they have got duties with the close connection of govt.’s administrate activities regarding rules and regulations of the state. Again they have face some certain problems. On the other hand the agencies have to apply some terms and conditions with their traders through mutual understanding keeping both sides benefit along with govt. benefits. All categories of trading agencies are to oblige the ‘Tax rules’ imposed by our govt. it is sure that the taxes are different types. Such as 1) income tax 2) sale tax 3) land tax 4) housing tax 5) export tax etc.
To clear any kind of tax there is some standing rules how to pay it. If there is any problem the people or the govt. are to suit file in the court and the court gives decisions after hearing of the petitions and the accused. We may place here about the land and its tax.
Land tax : People who posses land individual they have to pay land tax imposed by the govt. Again if there is any establishment specially building constructions the taxes are more than that of free land. There are many trading agencies that are connected with purchasing lands and then selling the same to the public after constructing dwelling house on it. Our country is at present Beverly in population problem. So it has become very eccentric for the arrangement of our housing. As a matter of fact there is a number of trading who are in the business of housing apartment setting to the public.
Land acquiring problem: Land is a very essential element and important for construct apartments. But acquiring land is difficult for real estate company because scarcity of land causes difficulties. As Govt. don’t agree to give land for real estate company so the have to buy land from many land lords. But there is some problem, which is seen when they want to buy land lord’s land. If the owners of the land are two or more, in this case one agree to give land but another don’t agree for the same stipulation. Some owners of the land do not want to give land for construct apartments. So, for acquiring land is a real problem for real estate companies are facing now-a-days.
Govt. policy: our govt. has systemized a high percent amount of taxes of the land value ready for sale.
- To be saved partly from paying a high tax to the govt. in connection of the matter in question of above the agencies would like to purchase any place from an owner with low cost showed in documentary stamps of the state. This is really void ebonite.
- Again, the agencies sometimes buy land with satisfactory amount but depending on that conversation they a suitable part of the aid amount as advance. Then they place advertisement in newspapers asking “apartments are going to be soled interested buyers are to contact according to the address”
There is also a beautiful strategy of collecting money from the interested buyer asking them to hand over the flats after a stipulated time. Through this way the agency holders become multimillion owners within a short time.
After adopting this policy they take heavy loan from a competent bank for the constructing purpose. Here they a miracle that they party from paying any sort of income tax showing the bank loan as precision of the state goes. This is also a beautiful scope not to pay govt: tax in full.
After competition of the flats the agencies hand over according to the documents. When the flats are given distributed to the buyer from then the owner of flats are officially table to pay the taxes and revenues of the govt: . This is also a tactic of the agencies.
In this way the agencies are paying the money in partly to the first owner of the land and once the targeted amount comes clear selling the same horse twice at a time.
Loan problem: Every real estate company takes loan from Bank for acquiring land or construct apartments or for other activities. But in this situation, they have to face various kinds of problem. It has been seen in many times that which amount of money they have take from bank but they had to pay double invest for that specific loan. So, it is one of the major problems of real estate company.
Comparison of Dhaka & Rajshahi:
Land price is a relevant economic factor in real estate development financing. High prices encourage developers to develop real estate through intensive use of land. Land prices are high in Dhaka city. The price of one decimal of land is around Tk 50 lakhs in Dhanmondi.
Dhaka is a high-density area. Industrial activities are very spread. About 40 industrial units are working here. There are also many commercial buildings.
The concerned bankers are very reluctant to finance real estate business in Rajshahi. Rather they prefer to support commercially day-to-day business activities. Bankers believe that there is more risk in financing real estate business, as rent is low. House building finance corporation has heavy amount of stock up advance. Thin type of financing would be more costly and full of complexities due to low industrial activities as well as lack of good entrepreneurs and expertise.
Financing of the real estate developers should be delayed because of the low land process, low density of population, low industrial activities, low rent and lack of expertise of the avail able entrepreneurs. Finance of the real estate business in questionable. However as the EPZs are going to be developed in Rajshahi, Iswardi and Bagora areas, the feasibility may be studied through observation for the next 3 years. This would ensure better feasibility of the investment financing of the concerned bankers a entrapped morns or developers.
Raw materials problem: Every real estate companies have a budget for their projects. From their budget they earns an amount of profit. Then they sell their flats to customers at a certain price. But when the prices of raw materials as like rod, cement, brick etc gets high then they had to increase their budget then the price of the flats approximately increases. So the high prices of raw materials directly or indirectly effects on customers and developers.
Political problem: In 1981, almost 50 people vied in president election. There is no surety that next time 100 people won’t come to fight for that post. If we trace the incidents that took place after independence, we’ll see:
- There is no political stability rather the permanent fanatics of the politicians lead the country toward an uncertain situation.
- Our country is in deep crises because of lacking a perfect leader for us. There is no professional politician in our country. Now the political parties proving their popularity by calling hartal but the citizens can’t come out for work because of their own safety.
- Now there is no one takes part in the meeting without money. That means that the slogans are not able to entice the people to attend the meeting.
- There is no political party who can run without the support of students and the labors.
- The tradition of our opposition party is to call hartal, gut the cars, and destroy personal properties or to break the glasses of offices if things or decisions don’t go on their favor. On the other hand, the tradition of our ruling party is to oppress the opposition party as well as to disallow them to express their opinion about the condition of the country and to do their work with freedom.
Terrorist problem: Terrorism problem is a great problem in our country. Real estate companies also suffer for this. When they desire to build a project at any place then local terrorists of that area wants percentage or a big amount of money. If the developers refused to give them money then they makes many problems at building their projects. So developers had to require the wants of those terrorists. Some times developers reject their project from that place.
The population of Bangladesh is increasing day by day. Specially, the population of urban area is increasing. At urban area, the accommodation problem is high and all facilities are available in urban area. So every people like to live in urban area. Many service holders spend a major portion of their earning for accommodation purpose and when they like to live in urban area, they come and begin to live. For this reason the number of people of urban area are increased. So there is essential to give them place for live. Not only place but also their dwelling place. At last, it is seen that real-estate business is very demanding and profitable business now a day.
Solvability of problem:
Government influence: Any interested government in economic development can help through its clearly expressed industrial policy; promote Entrepreneurship in one-way or other. By creating basic facilities, utilities and services and by providing incentives and concessions, the government can provide the prospective entrepreneurs a facilitative socioeconomic setting such conductive setting minimizes the risks, which the entrepreneurs are to encounter.
Political environment: The economic activities get the speed and can follow the system of business, when political stability exists in a country. As a result, the opportunity for investment will be obvious. If anarchy exists in a country, then no one can feel safe there and the law and order situation of a country comes to a standstill. If the government can’t control the rules of law and order then everyone becomes frightened about himself.
Government polity: The govt. present pouches should have to be changed. They should make a process when the agencies like to buy a land for housing purpose the documents of the landlord and buyers should be submitted to a competent bank reliable of the both. The bank will receive the money from the agencies and will give a deposit account book to the owner of land.
With this process the monetary function will come fully under the control of the bank. So according to the govt. producer the bank will deduct all the necessary taxes from the party and will place the tax money according to tax head of the govt. as per rule. Thus the govt. is sure to be benefited with the money of taxes.
Land: We should be aware of constructing any building with out any proper plan approved by the govt. On the other hand our political leaders should also oblige the rules and regulation of the state sacrificing their personal benefit. Here the govt. may place role on the people who are interested to construct any building on their land they ought to do the same as per advice of sanctioned plan. Again they should know that any fault is found the subject in question they should be severely punished.
All these unexplored real estate companies have tremendous demand in the customer generating markets of the world. Sustainable real estate development demand, careful assessment of the available products, and carrying capacity, proper planning and management preservation of unique resources, preparation of product offer and marketing of the product. Relevant government, semi government should take appropriate joint action plan to exploit enormous real estate potential in Bangladesh. It will open a new horizon for promotion of sustainable real estate company through preservation in Bangladesh.
- All developers can do something for lower and middle class people.
- As residential problem is one of the greatest problems, so they can construct building in various regions of Bangladesh.
- can take necessary steps for this.
- Developers can sell apartments to them by lower or medium price.