Investment is a very appropriate choice as future savings. This investment also has various types that you can choose from. Most people have also known about some investments such as stocks, forex, commodities, gold, or others. This time we will learn one of these types of investments, namely property investments. The benefits of investing in this property are also many. One of them is that this business instrument is one of the investments that many people love as an asset whose value continues to increase over time. Similar to other investments, the benefits of this property investment can also be used as a long-term investment. For more details about the benefits of this property investment, you can read the article below.

What is Property Investment

Property investment is a form of capital or future savings that is similar to other investments by involving the purchase and sale of assets and handling assets to generate income or profits. However, the difference between property investment and other types of investments lies in the type of assets to be managed. If forex or currency investment is in the form of bonds, stock investment in the form of stock securities, gold investment in the form of gold, then property investment will be in the form of a property or housing bond. Property management, whether renting, selling, or both, is the main step in investing in property. Even though this investment is not as liquid as other investments, you can still choose property assets for long-term savings.

Advantages of Property Investment

There are many benefits that you can get if you have invested in this property. For those of you who want to know what are the benefits of this property investment, you can read the advantages below.
  1. The advantage of property investment that you can get is property prices that continue to increase every year. Due to the increasing demand, but the need is decreasing. In fact, the increase in the price of this property will exceed inflation. That way there will be no loss if you invest in this form.
  2. The next advantage of property investment is that this property investment has a considerable capital gain. For example, you buy a house for 750 million, 5 years later you sell the house and can get a sum of 1 billion. This can happen due to the strategic location of the house or other factors.
  3. Another advantage of property investment is that it can be used as a long-term investment. It is considered as long-term because the development every year always increases well.
  4. Furthermore, the advantage of this property investment is that this investment can be seen physically. Of course, because of the physical shape of the property such as land, houses, and other buildings.
  5. As a payment when applying for a loan. You can enjoy the benefits of this property investment if you want to apply for a loan at any time.
  6. Can be rented. The profit of this property investment can be one of the other sources of making money besides selling it in the future. You can rent out the property you own while you still want to own it before you sell it.
  7. Potential for regular cash flow. The profit of this property investment is related to the previous profit. By renting out the property regularly, the results you get will also be routine every month.
  8. You can also use capital from other parties such as banks, which you can enjoy as a profit from this property investment.

Benefits of Property Investment

The benefit that you can enjoy in this property investment is that property investment has low risk sales. This is because the movement of property values is not as sensitive as stocks and other investment instruments. If stocks and other investments will have a high risk of getting losses when investing, then this property investment is almost not in the investment process. Due to increasing demand and prices that will continue to rise. So this investment will be very suitable for those of you who want to make an investment but don't want to take too high a risk in investing.

Disadvantages and Risks

After knowing the benefits and benefits that will be obtained if you invest in this property, it does not mean that with these large profits there are no shortcomings in the investment process. So next we will find out about the disadvantages and risks of property investment itself. Some of the things you should pay attention to when you want to invest in property are:
  1. Maintenance costs for this property investment will tend to be large. Because the property must be of high quality, this needs to be done in order to keep the selling price high.
  2. Property investment is certainly an investment that requires large capital. This large capital also needs to be accompanied by a good marketing strategy such as strategic location, advertising in property rental/sales, and others. So that they get a large profit that exceeds the capital that has been spent.
  3. The issue of affordability investment is something that must be considered as a weakness of property investment because property prices will usually be adjusted based on the nature of the local market. So that the selection of a strategic location also contributes to making this property investment.
  4. Transaction fees for property investment are also quite high. There are tax fees such as PPH of 5% imposed on sellers, as well as fees for BPHTB tax of 5% imposed on buyers.
  5. The time it takes to buy a property also takes a long time, unlike other investments. This is because the choice of property investment must consider many things considering that this property investment is a type of investment that is high risk return. Plus if you want to build a property that is not only land on it.
  6. Although the price has increased, this does not apply to the quality of the property itself. Every time, the building will inevitably experience shrinking functions. Therefore, the beginning of property development must be very calculated, such as the use of raw materials, in addition to price or initial capital.
  7. This property investment is also a fairly vulnerable investment in the event of a natural disaster or an intentional accident. The risks that occur can also be classified from mild risk to heavy risk. Even though it has been registered in insurance, there are still other efforts that must be made, namely, the time to return the property to its original state, so that the capital owner must recalculate the capital and the period related to the profits that should be obtained.

Examples of Property Investment

As mentioned earlier, this property investment will be in the form of bonds in property or housing. Including a piece of land and all the properties that are on it such as buildings, houses, trees, roads, and resources in the environment of the land will be considered property. For example, apartment and condominium buildings. Most people will need land to build this property especially in big cities.
 
Plus most of them have been used as offices and other public facilities. This makes the demand and need for housing such as apartments increase. Expensive rents make this investment the right investment to make. The next example is the boarding house and rental house business that you can choose as one of the property investments. Until now, the demand for this boarding house has been increasing because most people do their work or study in other people's cities

Especially if the boarding house is near a campus, office, or other public facilities. Unlike apartments, the rates owned by this boarding house are cheaper to be used as a place to live. Which of course adjusts to the facilities obtained. There is also land investment that many people have chosen since ancient times because the price increase is quite consistent from year to year. This is because the land area is getting narrower and narrower, which makes the price even higher. The location of the land chosen must also be strategic so that the land property has a price that can rise high.

How to Invest in Property

After knowing the advantages of property investment and also the disadvantages, this time we will learn how to invest with property products. There are various ways that can be done to start this investment. You can learn through the writing below.

Rental Property Investment

Most people will certainly build or buy property privately. However, if it is only limited to certain ownership, the benefits obtained will not be so felt. Therefore, you can do a rental business to earn passive income periodically without needing to spend a lot of time and effort.

Flip Property Business

This property flip business is a process and way to choose a house or other property. After that, the renovation process will be carried out and resold in a relatively short time with a price difference that brings in profits. The stage itself begins by taking a mortgage or KPA loan from a bank and then looking for various types of property at prices lower than the market.

Online Property Investment

Property investment can also be done online through a special platform, by connecting property asset managers with investors. But, to make an online property investment, make sure to choose a safe application and have an official license from the Financial Services Authority or OJK.

Capital to Invest in Property

In addition to preparing which strategic location will be used or purchased in making property investments, initial capital is also one of the things that must be prepared when you want to start a property investment business. You must bear the principal costs and other costs that are obligated to build the property. There are types of property investments based on the owner of the capital. That is, you as the owners of the capital itself, and also the banks. Some of the costs that must be prepared when starting a property investment in banks, developers, or the secondary market are:
  1. The first is the cost of the finished token which will be determined by the developer. However, if you buy a property on the secondary market, the cost of the finished sign is determined by the property seller. This completion fee is a form of clarity for you in buying a building or commonly referred to as a booking fee.
  2. Furthermore, there is a down payment as a cost that must be prepared when you want to start investing in property. After paying the cost of the mark, you must prepare a down payment if you want to buy a property through the developer. Meanwhile, if you buy it through the secondary market, the down payment is estimated at 20%-50% according to the terms of the bank you choose.
  3. Lastly, there is an installment fee that you have to pay. For beginners, property investment is usually done by way of credit or installments for several years, by paying monthly installments. The amount of installments is determined based on your agreement with the bank.
Meanwhile, for those of you who want to build the property itself, costs such as construction costs, maintenance, and other things are needed. After knowing what property investment is, the benefits of property investment itself, and also what capital is needed to invest in property, hopefully you can understand from the various explanations above. You can also try other investments such as stocks, forex, and commodities. However, it is still interspersed with learning that can help you to still make a profit. This the discussion from GICTrade regarding the explanation of "Profit of Property Investment". You can also find out other information about commodities, stocks, and other finances, such as Small Capital Beginner Investments that You Should Try! only in the GIC Journal. Also make sure you deepen your forex knowledge at GICTrade, via the scalping ebook, and also NFP live trading.