Methods of Property Investment that You Must Know

Investment Investment, especially for the long term, is very important, especially since the current economic conditions cannot be easily predicted.

Currently, the types of investments are increasingly diverse, ranging from investments in gold, and stocks, to branded goods, which are also considered to be profitable investments.

Although there are more and more investment options, the asset is still an option that is still favored by many people.

In addition to the property selling value remaining stable and increasing, many also think that property investment tends to be less risky than other types of assets.

Property investment can be tricky, even though the value remains stable and has low risk.

Because of that, there are many people, including beginners, who are still hesitant to start investing in property.

Are you one of those who are confused about starting a property investment?

So, before starting to invest, it never hurts to know the meaning and ways of investing in a good property. Here’s the review!

What is Property Investment?

It doesn’t feel right if you don’t know what property investment is.

Property investment is a type of investment that deals with buying, owning, leasing, managing, and selling real estate to generate profit or profit.

The asset is the purchase of real estate properties aimed at obtaining a Return on Investment (ROI), either through rental proceeds, resale, or both.

The property itself can be owned by an individual investor, a group investor, or a corporation.

Judging from the investment period, property investment is a fairly flexible investment. It can be a short-term investment or a long-term asset.

So, you can determine the asset period according to your needs.

Advantages of Property Investment

Before investing in property, we should first know the advantages that we can get from this type of investment.

First, property values ​​tend to be stable over time. There is no need to doubt this because the need for housing or buildings will always be there at all times.

Not to mention if you invest in property that has a high asset value. Of course, it will be very profitable, especially in the long term.

Tips Before Investing in Property

Choose the Right Location

The easiest way to invest in property is to buy a house, land, or apartment. However, you can’t just buy it without considering the location.

Choose a strategic location and have promising prospects. Such as a property in an independent city area or close to mass transportation with a large asset value.

Prepare More Than Enough Funds

Property prices are certainly not cheap, because it is important to prepare more than enough funds as a countermeasure if there are unexpected expenses.

Funds must also be adjusted to the type of property we are after. As well as additional costs such as repairs must also be taken into account.

Choose a Trusted Developer

If you want to buy a property product, be it a landed house or apartment. It’s a good idea to choose a property from a well-known and trusted developer.

This is done as an anticipatory measure. Considering that property fraud can happen and certainly harm you.

Try doing a survey first about the target property, then find out who is the developer responsible for it.

Check the track record of the developer, so you will feel more secure when making transactions later.

Apartment Investment and How to Choose a Prospective Unit

Investment 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!

High Demand

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.

Apartment Unbuilt

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