When investing in the property sector, location is not only the factor that will affect its performance. Because several other factors determine the performance of a property, and these factors are not the same between one another.
In this discussion, we will try to explain several types of property investment and what factors will affect its performance.
The discussion will focus on the type of property that can generate cash flow well in the future. This means that there is a routine income that is obtained every period of investment made. The following is a further explanation:
★ Property for Family Residential
The last type of real estate investment is a family residential property. This type of investment provides the most stable results, because whatever the economic conditions that are happening, people will always need a place to live.
Thus, in a normal market, occupancy rates will remain high and be able to provide a stable income. This type of family residential property has operational cost rules that can be shared between the owner and the lessee. This depends on the agreement when the lease agreement is made between the two parties.
However, if you do not agree above, it means that the owner will bear any risk of increasing the building operating costs during the rental period. For this purpose, usually the property rooms need to be built based on the owner indulgence, such as gaming room where people can play or install aplikasi sbobet mobile in their phone. Sbobet is an online gambling platform that major in South East Asia.
All types of property that we have stated above are types of property that can provide rental income regularly to the owner. The income comes from rental income paid by the lessee to you as the owner of the building.
You can consider several factors and costs that will be incurred to choose the most appropriate type of property.
However, if at this time, you are not able to invest in the property sector, other, more profitable ways can be done. The trick is you can invest in low-cost investment instruments for starters.
★ Property for Industry or Manufacturing
Investing in industrial properties usually requires lower operating costs compared to the office building and retail properties. There are various kinds of investments, ranging from warehousing, manufacturing, research and development sites, and distribution locations.
Some important factors that must be considered when investing in this type of property are the height of the ceiling, location close to major transportation such as rails or sea docks, the ability to load goods, and others.
★ Property Office
Lots of property entrepreneurs who make major investments in office buildings. This is because office property can produce the biggest profit compared to other types of property.
Besides that, a strategic location and business center is one of the driving factors why this type of property is very profitable. The demand for office space mostly comes from companies that need space in the room to fulfill various functions such as finance, administration, operations, and so on.
So, as the company continues to float, the demand for bigger office space will be even greater.
Some weaknesses that should be considered when investing in office buildings are markets that tend to be sensitive to economic performance. Also, office buildings have high operational costs, and this won’t be very easy if you lose the market.
★ Property Used for Retail and Trade
There are various types of property for retail and trade, for example, shopping centers/malls and shophouses, which are strategically located by the highway. The amount of demand for retail property is influenced by several factors, namely location, population density, the level of income of residents in the vicinity, and population growth.
If viewed from an economic perspective, retail property has the best performance in developing countries, especially when retail sales growth is high. The beneficial thing that will be obtained from the retail property is the rate of return, which is more stable compared to office buildings.
This can happen because the leases are usually longer, and retailers are also less mobile than office tenants.