In the past, landed houses were the prima donna of choice place to live. But now apartments are in great demand and sought after by people. With the high demand for apartments, there are also investment opportunities.
Although most people buy apartments to be used as a place to live, not a few also buy them for investment assets.
Vertical housing can be said to be an attractive property to invest in, so why is apartment investment worth considering?
Apartment prices will continue to rise because their availability is not as fast as market demand growth.
In addition, the price increase is also influenced by the Tax Object Selling Value (NJOP) figure set by the local government.
Therefore, the prospect of apartment investment is quite bright, so here is a description of the advantages.
Apartment Investment Benefits
Apartment investment is one form of investment that you can choose today.
So, if you are confused about choosing an apartment or house investment, then there is nothing wrong with buying an apartment.
Of course, there are many advantages of buying an apartment that you can get, what are they? Let’s see!
It has been mentioned earlier that the demand for apartments is high, even if the availability is not as fast as the growth in market demand.
This condition makes apartment investment more prospective than investing funds to buy a house.
The benefits of apartment investment can be obtained from renting out or reselling the dwelling after a few years.
Rental Term in the Medium Limit
If you buy an apartment to rent back, then the benefits that can be obtained will be quite large.
The reason is, that the average apartment rental period is in the middle limit, which is around 2 to 3 years.
If the old rental period has expired, you can offer it to new tenants to get more benefits.
Low Empty Risk
The high demand for apartments, especially in big cities, makes the risk of vacant housing lower.
Especially if you buy an apartment that is developed in a strategic location and is equipped with complete internal facilities.
So that way, you don’t have to bother offering apartments for rent.
More Environmentally Friendly
Did you know, that buying a studio unit-type apartment is more environmentally friendly than other unit types?
If examined more deeply, then the energy use in studio apartments is minimal where you only need one air conditioner.
This lack of energy use can certainly attract buyers or apartment tenants who care about the environment.
So, is apartment investment profitable? The answer is of course, yes, but where there are advantages there are also risks.
However, the risks and losses of apartment investment can be minimized if you buy a good apartment for investment.
Well, before reviewing how to choose the ideal apartment for investment assets, it is better to first understand the risks of apartment investment.
Apartment Investment Risk
Must Spend Monthly Fee
When investing in a house, we must prepare unexpected funds, for example for repair costs in the event of damage.
Meanwhile, apartment investment requires you to prepare monthly funds for maintenance fees, sinking funds, parking, and others.
Some apartment managers also include the cost of apartment renovations and decorations in the monthly fee.
The biggest risk when buying an apartment, either to be lived in or used as an investment asset, is the cancellation of the construction.
This unexpected thing can happen because developers usually offer apartment units before the project is built.
It is not uncommon for investors to lose hundreds of millions or even billions of rupiah due to the cancellation of the construction of this apartment.
Usually, cancellations happen because the developer has a problem, so it’s important to keep track of their track record.
Maintenance Depends on Building Manager
Unlike home maintenance which is very dependent on the owner, apartment maintenance depends on the building manager.
If the building manager is bad at carrying out his duties, then this will certainly have an impact on your apartment unit.
So, you have to make sure the building manager does his job properly, correctly, and professionally.
Do not let prospective buyers or apartment tenants discourage them just because the apartment looks unkempt.
Apartment Ownership Loan Interest (KPA) Rises
Many people buy apartments with a credit system through the Apartment Ownership Credit (KPA) program.
Yes, although the credit system through the KPA program makes it easier for us to own an apartment, some risks need to be known.
In the first three months, the number of installments may be low but increases sharply in the following months.
This happens because the number of installments is accompanied by an interest rate ( floating rate ) that is not fixed.
How to Choose a Good Apartment for Investment ?
Well, after understanding the advantages of buying an apartment and the risks, are you sure to invest?
If yes, then this is the time to choose a good apartment for investment so as not to lose money.
In this case, you can’t be careless, because the amount of money spent to buy an apartment is not kidding.
Here are the steps you can take to get an ideal and profitable apartment unit.
Ensure the Strategic Apartment Location
Just like choosing any property, location is the main key in choosing an apartment.
Make sure the property that will be used as an investment asset is in a strategic location so that the selling value of the apartment will increase.
This applies not only to apartments for sale again but also to apartments for rent.
If the location of the apartment is strategic and close to various facilities needed by the tenant, the rental price will also increase.
Choose the Appropriate Target Market
It is also important to note for those who want to enter the world of apartment investment, namely choosing an apartment that fits the target market.
For example, if you want to target the student or student market, you should buy an apartment located near the campus.
If the target market is office workers, then look for apartment units located in business and office areas.
Apartments purchased according to the target market certainly offer brighter prospects!
Consider Internal Facilities According to Market Needs
After considering the location and target market, the next step is to consider internal facilities.
It is important to buy an apartment with facilities that can support the various needs of its residents.
If you are targeting the student market, it is important to provide standard facilities in the form of study desks and internet connections.
It would be better if other additional facilities were available, such as a swimming pool to a fitness center like at Akasa Pure Living.
Choose an Apartment from a Trusted Developer
If buying an apartment for investment assets, then make sure to buy from a developer who has a good track record.
Do not choose the wrong developer, because the quality of the developer will greatly determine the profit and loss of apartment investment.
There are not a few complaints from apartment residents, because the developer has left the housing management business.
After being built, the apartment was neglected so the atmosphere in the apartment became out of control and under control.
Do not rush
Apartment prices will continue to rise, so it would be better if you buy them as soon as possible while prices are still cheap.
The sooner you buy an apartment unit, the better the potential as an investment.
If it is delayed, the price of the apartment will increase so that the profits from the investment will certainly be smaller.
However, do not be in such a hurry that you forget the details that must be considered.