Get Profit From Business Apartment Rental

Apartment Rental

There are two main advantages of investing in the property sector, especially in the area of apartments Serpong BSD. The advantage that is the value of the rent and capital gains arising from the sale of progress or development.

 "Apartment rental Value tripled from the rental value of the home and shop are only three campaign four percent per year, " says Daniel Tjiputra, marketing consultant The Ayoma Apartment

Example of how to achieve a profit investing from the value of the lease. One of them is business boards in regions of Serpong BSD, especially around the campus in Switzerland-German University, Prasetya Mulya Business School, and others. In the area of cost boards per month ranged from Rp 3.2 million to 3.8 million a month.

 "If the next three years our exclusive apartment wakes up. Can be rented Rp 5 million to Rp 6 million per month, meaning the value of the lease that Rp 60 million one year,  "said Daniel.

Calculation based on Daniel, Return on Investment (ROI) can be obtained is the rental value of the apartment owner's investment is divided. The value of Rp 60 million shared investment of Rp 500 million.

 "I.e. a year it could be the value of the rent for 12 percent. In other words, 8 years already behind the capital value of the lease. It's not yet calculated a capital gain arising from the sale and the progress of reconstruction and development in BSD around Aeon Mall. Therefore, there will be numerous luxury apartments, offices, and hotels, luxury hotel,  "says Daniel

Opportunities

For sale or for rent, the property's current bid is indeed increasingly more and more. The property is still an excellent investment.

Five years ago, it may be difficult to imagine mortgage rates or credit ownership apartments (KPA) can decay to below 10 percent a year. The decline in interest KPA and ownership credit shop or even deeper home office.

January 2011 Credit Home Ownership at flowers takes, for example, the average still 10.96 percent. However, currently, the interest is already plummeting to levels of 6.91 percent. The average mortgage interest or shop house home office down from 10.66 percent to 9.9 percent in the same period.

The decline in the cost of financing the property owner no doubt encouraging people's interest in that property. Hunting property not less crowded with fondness people Indonesia to invest in gold. Check out the property fever are the symptoms that occur in BSD City.

 "A rise in property prices was almost certain, especially if its location is strategic, " said Freddy Pieloor, MoneynLove financial planner Planning and Consulting, to Cash.

You can feel the hardness,  "can " from this investment. Just, however, considerable capital and understand very well the risks involved. However, the investment law's "high-risk high return " You should always remember.

Investment in property investments  "heavyweight ". This is because we need a lot more capital. So, the liquid property does not stock, mutual fund, or gold when you need in exchange for money. So, property investors indeed really need to buy more ammunition.

However, as one step diversify an investment portfolio, not wrong if you are seriously weighing the odds of entry into this investment instrument for chasing profits.

Business and investment in the property offer at least two advantages. First, profits from rising property prices are obtained from the difference between the purchase price by selling price (capital gains). The value of capital gains can be enormous, but the ownership of the property off your hands.

Second, the profits of the cash flows (cash flow) from the rental of property assets. Advantages of renting out the property may not be as big as when you sell it. However, you could be pocketing routine income if the lease without losing ownership.

If you are lucky can rent out the units property accordingly target income, proceeds from the rent that can be used to pay for the installment credit. You can also use it to support other financial goals, such as setting up a retirement fund or funds the education of the future.

Target market

Prita Ghozie, ZAP Finance financial planner told Cash, determining your target market or prospective tenant is a very important step because it implies many things.

First, the type of property leased to You. If your target market is a student, then buy studio type apartments might be more appropriate than buying a larger unit and complete.

Conversely, if your target market is the expats, then buy a residential (landed house) complete with swimming pool. But, if you target a select shop, businessmen or home office certainly more suitable. Prita added, for property apartments, markets in Indonesia prefer type containing two rooms.

Second, the determination of locations. The location of the property near the center of education such as school or university certainly more fitting if You market goes to from among the students. Conversely, if your target is workers, whether local or foreign, it's good to choose a location close to the Central of the business or industry.

Rental rates

Once you've made sure who the target market or prospective tenant to your property unit, the next step is determining the rents.

Absolute rent price research needs to be done. You can take advantage of the sophistication of the internet to access pricing information hire. For example, by looking the site buy sell and rent properties that are mushrooming at present.

It's also important to look at the neighbors left-right who rent units are similar. In addition, specify the property You rented out also that a non-furnished alias without furniture, semi-furnished, or complete with furniture? This factor determines the plundering of your property rents.

Calculate Rental Rates

Prita said the potential advantages and risks of investment properties that we rented out, need to be calculated carefully.

To determine the price of the lease, you can refer to the level of capitalization of property we rented out. The average level of capitalization of house property is 3 percent-5 percent, while the apartment about 7 percent – 12 percent. But, it depends on the location.

For instance, you buy a 440 million Idr, apartment rents You a minimum of $440 million x 12 percent, equivalent to Rp 52.8 million per year or U$ 4.4 million per month.

You can open the door of negotiations with prospective tenants to pay rent in the future all at once for one year. Well, happy investing!

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