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Saturday 27 June 2015

Property Investment in Indonesia


Investment is something to invest to other instruments by expecting to get profits in the future. One of the investment which gets profit is an invesment property.The investment property such as land, bulidings which can be rented. Beside that, invesment property business also will get opportunities and challenge, the opportunities of the property price has incrased every year.

So, that bussiness has ensured profits.

And here, some advantages of investing in Property Sector
1. The risks are relatively small, there is not a no-risk investment, but property investment arguably more secure than financial investment instruments. Why? Because you can manage your own investments so that complete control in your hands. Of course the risks in the property investment remain, such as the possibility of damaged buildings, tenants are late paying the rent, and it remains to be anticipated.

2. Not overly affected by external factors, compared with financial investment instruments such as stocks or bonds whose value fluctuates influenced by political economic situation, inflation and interest rates, investments in property although also affected by external factors, but the changes are not going too fast. For example, house prices will not necessarily change overnight but need the to change from monthly to yearly.

3. Profit / big profit. Investments in property gives the opportunity to gain a very big advantage. Many world renowned entrepreneurs successful investing through the property. Especially for the property market in Jakarta, chances are very promising. In the financial education classes organized by Citibank some time ago, Luke Rowe of Jones Lang Lasalle Indonesia stated that the occupancy rate of commercial properties such as office buildings in Jakarta reached 90%, which led to rising rental prices had risen rapidly. Similarly, the residential property market and apartments at a purchase price in the range of $ 200000-250000 can be rented at a price Rp20-25 million per month. It will be able to gain revenue in the range of 8-10%. When compared with other major cities such as Singapore or Hong Kong, the price of rent in Jakarta is still much cheaper. Therefore, Luke Rowe assured that for at least 3 years, property prices in Jakarta will continue to rise and will not experience oversupply problem.

4. Can use other people's money to invest - this is one of the most attractive features of the investment property is the system allows us to use other people's money to finance our investments. Unlike other investments that will depend on how much cash you have, property investment can be done by paying an advance only 20-30% of the property price. If we invest in the stock market, such as stocks, bonds, mutual funds, or investment gold or artwork, everything will depend on how much cash we have. Meanwhile, property investment can be done only by 20-30% property prices. The rest can be financed through bank loans. The implication is that the same nominal money (eg Rp20 million) You can acquire property assets valued at 100 million, but if you buy other investments, the number of stocks / bonds / mutual funds / gold / artwork remains only Rp20 million. Thus, property investment provides greater opportunities and quick to double assets.

5. Income cash flow (cash flow) routine, the results of the rent, you can obtain a regular cash flow as revenue to ensure your financial stability. The more properties you have, the greater the cash flow you will receive.

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