Category: PROPERTY MANAGEMENT

Having a home as a place to rest and raise children is the dream of many couples. With your own home, this means you no longer need to stay at your parents’ place or rent a house every month.

The concern is that not everyone can buy their own home. When this happens, don’t force yourself to buy what is beyond your ability.
To find out if you can afford to buy a house or not, this time, we will explain 6 signs that indicate that you should not yet have a home.

★ You Assume a lot About Future Income

Do not buy luxury homes and large size just because of the reason you will generate greater income in the future. This kind of thinking is a mindset that is careless and can wreak havoc in the future. Because you will never know the events in the future, and you may not get a salary increase or income that was previously estimated.

The best solution that can be done is to take a conservative approach based on the income you get now. A conservative approach allows you to save more money and can pay off your house slowly.

★ You Cannot Pay a Down Payment of At Least 20%

When you can pay for a larger home down payment, there are some benefits to be had. The advantage is that you don’t need to borrow a lot of money from banks, and the interest rate is much lower.

If at this time you have not been able to pay a DP of 20% of the value of the house, then we strongly recommend reconsidering buying a home now. You can save more money in advance so you can pay for a larger down payment.

Or you can first invest the money into investment instruments that can increase the value of money in the future. EzPlanetOne can be one instrument that can offer a yield rate of up to 18% in a year.

★ House to Be Purchased is Outside The Budget

Your budget aims to set limits on the ability to buy a home whose value is estimated based on the income earned. When you buy a house with a value that exceeds the ability, then this is tantamount to burden yourself.

How to make a home payment budget is quite simple; you only need to calculate the income and expenses that are obtained each month. The thing to be sure of here is that the mortgage payments do not interfere with the monthly needs of the family.

★ Home Installments Exceeds 30% of Total Monthly Earnings

An ideal condition where someone can pay the mortgage, but still be able to live properly is the installment payment does not exceed 30% of the total monthly income. Perform an evaluation immediately, not to the amount of installments that you must pay each month exceeds the ideal limit.

A better condition is when you can pay a mortgage of less than 30% of your total income. Do not make more than 30% of total income, because this will greatly burden your financial capacity and disrupt expenses for other needs.

The rules above, of course, do not apply absolutely to everyone, because those who earn more can take higher installments.

The rule applies to the majority of Indonesian people who work as employees with sufficient income.
If the installments have exceeded the 30% threshold, then it is strongly recommended to consider looking for another house that is much cheaper and does not burden financial conditions.

★ Of The Interest Rates You Get

If you have a high amount of debt and a low credit score, the bank will consider you a risky borrower. That means the interest rate you will get can be higher than the average borrower, and the value of the installments to be paid will also be higher.

When you get conditions like the one above, the solution is to choose a house with a cheaper price so you can get installments that are not too burdensome.

Owning a rental property is the
right step to increase the coffers of your wealth. The existence of property
makes it easy for you to get passive income without the hassle of working from
day tonight.

If you currently have the money
collected and want to find a house to rent, you need to pay attention to
several criteria that make the rental home has value in the eyes of tenants.
The important criteria which we will explain below will greatly influence the
amount of public demand for these rental homes.

Anything?

Let’s look at the explanation
further so that you can learn property investment.

★ Facilities That are There

People who live in an area not
only need a place to live but also need a variety of entertainment and various
other facilities.

The location of a property is
said to be strategic if it is close to malls, shopping centers, public
transportation facilities,  health
facilities, cinemas, and so forth.

★ Property Tax that Must Be Paid

The thing to know is that
property taxes differ from one region to another. Therefore, it is important to
know the amount of tax to be paid so that rental income does not cover the
amount of tax available.

Don’t worry too much about high
taxes, and if the area is strategic and has a lot of potential tenants, there’s
no harm in buying property there.

★ Pay Attention to The Environment Around The Property

The environment or location
where a property is located will greatly affect the type of tenant who will rent.
If the location of the house or property owned is around the university or
school, then students and students who attend school, there will become
potential tenants.

★ Existing Job Opportunities

An interesting factor for many
tenants next is whether the location of the property is close to the work
location. If your property is in an industrial or corporate area, then the
employees who work there have the potential to become tenants.

Or it could be when a new
company will be built around the location of the property, this also greatly
affects the employees who will rent the property in your place.

★ Close to School

This criterion is very
important to consider if a family is your target. It’s useless if you have an
excellent property, but quality schools around the environment are very
minimal.

★ Future Development Plans

A property is considered
valuable not only from the current situation but also from future development
plans. If the area is built with high-quality apartment buildings, malls, and
schools, then the area can potentially have very good growth.

Future development can also
potentially harm and affect the competitiveness of your property. For example,
there are plans to eliminate green open space or the existence of new housing
that has the potential to provide competition for your property.

★ Real Property Rental Income

Rental income is the potential
passive income that you will get when you own a property for rent. Make sure
you know well what the average rental costs are around the neighborhood. So,
don’t let you set a rental price that is too high or too low.

If you want to set a rental
price that is higher than the average rental fee, make sure you provide
additional value to the tenants first.

In the past few years, the trend of developing the property
business is higher. Bahlan developers began to direct the industry to the
condotel hotel category. This condominium is an apartment called a condotel
that has different characteristics compared to ordinary apartments. For those
who are looking for investment products, property investment provides a great
opportunity to be occupied. This is based on the excess property investment
that will provide a large return to the culprit. Before deciding to invest, it
must be understood about the opportunities and challenges in it.

In 2016, property investment was getting better compared to
the previous year, which means that many entrust their capital into this
vehicle, and it can be seen from several existing indicators. The first is
regarding the growth of Growth Domestic Product or GDO in Southeast Asia, which
means that in Indonesia also experienced an increase. Indonesia has good
stability in investing so that investment opportunities are opened wider for
domestic and foreign investors. In the property sector, there was a 50 percent
increase in capital investment compared to the previous year. This is good news
for investors, both domestic and foreign nationals.

Second, the government has made efforts to provide tax
amnesty, which has provided good investment stimulation this year. The Asian
Development Bank and the World Bank make predictions that Indonesia in the
economic segment will enjoy growth in the range of 5.3 to 5.4 percent. To make
a big profit, the property market will create widescreen investment and grow
better in a positive direction that continues to be conducive and increasing
from year to year. It is very likely that in the future, the development of the
property industry will be more valuable because there will be more demand.

Even though the situation is increasingly siding with
investors, still there are always challenges that must be faced. The developer
must be careful in developing the property business where the assessment must
be done properly so that the decision making is not based on assumptions only,
but assessed adequately so that the results of investment products will be
easily sold and liked by investors. The new business model is needed as an
innovation in which the business will be more diverse if it continually carried
out different innovations in each season. Diversification also needs to be
applied in development so that the existing property can become a modern
residence that interests the community.

Not only opportunities that must be taken into account
because euphoria instead must be faced with caution. The challenges that come
in the realm of property do exist when developments are taking place where
investors and developers do not have to feel arrogant but also think about how
in the future so that business in this industry continues. Prospective
investors, in this case, should pay more attention to how the consideration
will be decided for a medium-term investment, not just the short-term focus on
products with added value.

Because the government influences this industry, the
government must issue clear policies so that those policies can be fixed and
not be changed for several reasons. The government has now issued a policy for
foreign nationals so they can own property in Indonesia. But until now, the
opportunity given by the government has not been responded well by foreign
investors. This could be a great opportunity for domestic investors to be able
to have large investments in their own country without worrying about the
dominance of foreign citizens in Indonesia.

Opportunities and challenges will always come hand in hand,
especially in the property sector. Where there are opportunities, there will
also be challenges that must be faced to make this business more known and
sought after by investors. As a leak, investors in Indonesia have a mindset
about the long-term residential and modern property so that if the property
type matches their mindset and taste, they will automatically start investing
their capital in the product.