Now, Apartment Became Promising Property and Investment Target
By : Ahmad Fadli And Aldi Firhand. A | Sunday, December 17 2017 - 12:37 IWST
Illustration of Apartment Development (Ist)
INDUSTRY.co.id - Jakarta - Always Trend AKA always follow the trend of modern lifestyle was not always make miserable. For example, call it the trend of living in a modern dwelling like an apartment. If you are observant, residential model like this you can make investment!
Yes, taking advantage of trends is a smart business choice. And by investing in an apartment for rent then you can make a profit without fearing the risk of losing your initial investment.
In addition there are a number of advantages apartments compared to home tread. Let's say the location of the apartment is usually built in a strategic area, in contrast to the tread house that is usually offered in the suburbs. Use an affordability calculator if you want to compare KPA installments calculations.
And here are some aspects you should look for in order to make this apartment investment choice a high profit.
1. Site selection
The preferred location of the apartment is located near the business center, campus, or at least has easy access. Likewise with access in and out of and to the apartment environment. Remember, apartment enthusiasts are generally workers, professionals, and businessmen with high mobility.
Also know who your target market is. If targeting the expatriates, then understand first their habits and lifestyle. Generally they have a community and tend to live in adjacent neighborhoods.
2. Legality aspect
For security, also the completeness of apartment permit, such as block plan, preliminary permit, IMB, and certificate of land (Hak Guna Bangunan or HGB). This is so that you avoid the loss so that the ownership status of purchased apartment units do not get into trouble.
Or to just take advantage of property agent services that can also help you to the aspect of legality. Each property agent must also have its own specialty, for example an agent with an apartment specialization or an agent specializing by area.
3. Facilities offered
There is a gym, sports facilities (tennis courts, swimming pool), restaurants and cafes, parking lots, parks, number of lifts, etc., could add value to your apartment rental business.
4. Property management
Apartment management or property management of the apartment greatly affects the services provided to residents and guests. This management includes the quality of cleanliness, safety, and comfort during the stay in the apartment.
5. Funds
Adjust your apartment investment with your budget. Do not forget, allocate for notary fees and taxes. If buying with credit, prioritize taking credit from banks that have worked with the developer to have more concise administrative procedures.
For rental of apartment units in full furnish condition, must also be provided funds to fill the interior room equipment.
6. Return On Investment
What kind of return do you expect from your apartment investment? Since rental income is similar to interest income on deposit and bond coupon bonds, people usually use the deposit interest benchmark as the lowest benchmark.
But you can also expect higher ROI. The reason; because apartment investment is long term (more than 5 years), so you can also use benchmark medium and long-term government bond yields.
For example, if current deposits range from 6% p.a, and medium-term and long-term government bonds 9% 12%; then you can peg your investment ROI's investment accordingly or slightly higher than that benchmark.
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