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Archive for the ‘Property Investment’ Category

When you have an unused property, what would you do with it? Some people would only just leave the asset until they are bored with it, and sell it. Some other people have an idea in their mind and turn the spaces into their office building or other business industry such as florist, book store, cuisine restaurant, and so forth. But for you, you already have your business, and it is not the right time for you to do the expansion.

Based on this condition, perhaps you decide that renting the space would be the best idea of all. The building will be no longer considered as abandon building. But it is not only that because you will also obtain profits once you have tenants rent the building. Before you really make a move such as promoting the property, perhaps you need a commercial letting agent to be on your side all the time, until you finally finish the renting system

With letting agent, once you register, they will promote your property into their catalog book. When there is a tenant attracted and interested in your property, the agent will take him around and show every advantage he may obtain by having the building. This way you can rest assured that the abandoned asset is already in the right hand of property agent.

Investing in property is still a first choice most people, because people assume that it is one of the best ways to grow your money. In general, property investment is considered more secure than other investment types. Why you master or manage their own investments, so you can control almost everything. But it is not the only advantage berinvesatsi in property, because the most interesting fact of invesatsi on this property allows you to use other people’s money to start investing.

Most other investment products is heavily influenced by external factors. For example, the prices on the stock market can go down fast even significant because of the issues or gossip about politics, government policy, national security, economic conditions, or as bond prices fall when rates of inflation and interest rates rise. Compared property that although external factors are also affected, but the changes are not too fast, for example, house prices certainly can not be changed just like that in a day but it took years.

Benefits of Investment in Property
By investing into the property, you have the opportunity to get the huge investment return. If you see Donald Trump pengusuha property of Americans or Ir. Ciputra from Indonesia, they are rich from property business. The Bank also has the property, if we look at high-rise headquarters building is magnificent, not to mention dozens of branch offices

Many ways to invest into the property. You can start by buying a house to live, shop, build a house rental, other commercial buildings or vacant land. Of all these options, buying and selling a rental home is better for those newly elected will begin to invest in property, then a little savings from the lease to be reinvested .. If you notice a lot of people are interested in creating a rented house, because by being landlord lets you have property that you can control yourself, then sell it later. The good news is you do not need much money to start your investment in property.

It is important to understand why the property is often the main choice of people to develop their wealth, the reason is not because the property is not at risk. As with other investments in the property also has constraints such as the tenants are late paying rent, moved without telling, damaged buildings, whatever difficulties may occur. Essentially if you are willing to bother with the affairs of this kind, the investment in property is for you.

Though there is a chance to use the loan to finance your investment property, not that you become careless. Investment in property and equipment requires the use of money and time commitment. So do some research and establish a plan before investing in property is very important. Because of steps the earliest and most important once you decide to invest into the property was to learn everything about the property as much as you can.

Continue to learn, there are many sources of information can you can to learn about investing in real estate for example from the book – books, courses, seminars, as well as internet and others. To learn more about your property business can also take part-time job as a property broker. The advantage, besides you can practice what you’ve learned from various sources of that information, you can also get commissions from the sale of the property you are selling. Yet again the chance to build networks or a network which would be very useful to help your property business later. Doing research in advance will make you “aware” of the risks or problems that may arise regarding the ownership of such property can be a problem with the tenants, building maintenance costs.

Is it hard to Get Loans For Investment Property?
The most difficult part of all business is to get money to finance the business. People even still very difficult to borrow from a bank business loan to start a business. Banks are usually only willing to lend only to businesses that have been running two years. This does not apply when you want to borrow money from banks to buy houses. No matter whether you’re just buying a house for the first time or for the umpteenth time, a home loan may be granted by the bank to purchase a house to whatever. Besides, from the side of the home loan banks are also considered as a kind of lowest credit risk.
Because the amount of home loan repayments tailored to your income, the bank Thefore assume that the debtor has had a stable income that can be used to pay the monthly installments. Then in terms of building itself jaminanya namely, that we know continues to experience price increases, so do not be surprised if the guarantee is generally able to cover its debts.

Cash flows, “Cash Flow”,
Cash flow is money that you receive a regular basis on the money you invest in an investment. such as interest earned on savings and deposits are cash flow because it provides revenue for you. In property, the rent could be income or cash flow for you. The more buildings you can rent out the greater your cash flow.

The opportunity to build a bigger building,

once you’ve managed to pay off debts, you will have more money to be allocated, for example, to make existing properties becomes even greater. Many investment properties starting from a small building, but because there is revenue from the lease that could mencover monthly debt repayments, then make the property into a larger building became very possible.

Using other people’s money or the use of financing is one of convenience that can only be used dakam invest into the property. But there are still many advantages besides investing in properties that make it very attractive in comparison other investments.

The value of your ownership of the house increases.
The value of your ownership or rights to property investment is financed from the concept of using other people’s money was going to increase, far exceeding the debt or obligation to you. Ownership by a person in an investment is known as equity. For example if the purchase of your property investment amounted to USD 100 million, which was financed by a bank to Rp 70 million, the remaining USD 30 million to use your own money. So your ownership rights to the investment worth USD 100 million had amounted to USD 30 million or 30% of it. The ownership will increase in value because of the reduced debt repayment obligations. Besides that your property rights are also growing because of rising property values. Your property value will increase due to inflation which makes the price increases for goods and services, including property. This is not just due to inflation rising property values but also you have the opportunity to increase cash flow or your regular income by way of raising the rent money was in line with inflation. The increase in property values this can even increase your borrowing power. Banks are usually happy to provide additional loans based on collateral or property price increases. You can use this money to repay the outstanding debt of the old, and the remaining money from the loan can go into your pocket. Then to adjust to a new loan installment of rent income.

This is not the first I heard that term, had a second or even third time in a seminar on getting rich from the property. But only this time I understood from these words mean. It reminds me of what I heard earlier. In addition, these transactions have a factor of speculation rather than investment itself. So how does that, can we really make money when we buy and not when we sell?

One simple idea that can explain that is when we buy property below market value or market value (MV). For example, in certain areas, two-bedroom apartment will usually be worth USD 400 million, – Now, there are sellers in those areas that are affected by weight problems and really need the money quickly and want to sell their property. Because these people want to sell your property quickly, he is willing to sell the property for USD 350 million, -. Now, an investor who saw the opportunity, quickly took a chance and bought the property. In this case, investors are buying property  USD. 400 million, – the price of Rp 350 million, -. In this transaction, investors have been making a profit on paper of Rp. 50.000.000, -. Investors can sell the house immediately or even in the home buying process so that when it happens once the purchase transaction can occur that require the sales transaction gains for investors. This is a very simple idea about how to get rich in property, buying property below market value, and make money when we buy is not when we sell.

I was initially confused do not understand what it means when I heard about the title above. It is said there that one technique or strategy of investing in property is not a good thing when buying and when selling. It is not unusual for me at first. All I know is usually a name merchandise we buy it first, when up in value if the goods we sell, we’ll be lucky. If the price falls and the price is less than the purchase price, then that is a loss happen. For example, we bought a property at a price of Rp 500 million, -. In purchasing the property because the marketing people say that the property is built in areas where there is potential for price increases over the next few years. According to the seller, will have some infrastructure built close to where the property to be built, such as stations, malls, entertainment places, etc.. First, this is a very common situation occurs where people buy property with the expectation that property prices will rise in the future and the purchaser will generate profits from sales of property. But in this case we do not make money when we buy, instead we spend money for a down payment. This law of economics that I have ever learned in school.

But for those who are not too late to take a decision to invest in property first, this advice ought to be considered. “Do not be drawn on his property, but was interested in the numbers.” What these words mean? With the property that the intent here is more to the physical appearance of the property, say property is in the garnish with a modern interior and pretty good as well as follow the progress of time, then this would be very tempting for novice investors. Naturally, it is usually the feeling of playing here, feelings and participate imagine if staying in the property.

These beginners often make investors forget that first goal early to buy property for investment is not for the own. So that the second factor is very important that this investment calculations sometimes be overlooked or not the account with the rational. For example, because it was so already in love with the design interiors, as well as luxury units, the calculation of ROI (Return on Investment) as well as the potential cash flow (rent or rental) and potential capital gains, and property prices relative to market prices will be at the second.  When this happens, the real beginner investors lulled by the beauty of the property, so forget the main purpose of investment,  capital gains or cash flow.

Work with realtors or real estate property, once you equip yourself with sufficient information about the property business we then look for a home seller’s agent or property broker willing to help you understand more about the property business. Look for sales agent who had experienced at least two years, they usually have far more control of the property business. You should seek realtors who work fulltime partime than because they can not meet.
Research on interest rates, rising property prices, rents, if you want to use the financing from the bank, the bank loan rate compare with one another and seek the most competitive. Then also on the assumption that property prices so that you can determine approximately how the selling price someday. Do not forget if you want to get from the rental home, before determining the rental price, look for information on residential rental prices are reasonable for the area, adjusted for the condition of the building.