This is the reason the rich prefer the property business

The property business proved to be a lot of successful people. The interest of rich people to pursue the property business is none other because it has a myriad of advantages. What are they?

1. Added Value

Value added property investment is obtained due to the development of buildings on a vacant lot. Value added will be higher, if the building is in strategic location with good access and facilities, and made with beautiful architecture.

2. Increased Annual Income

From a plot of land developed, an investor can receive the lease. Another advantage is the increase in rental rates, because the nature of the scarcity of land and property will continue to occur as long as the economy in a country continues to grow.

3. Increase of Land Value

Appreciation of land value is another advantage of property investment. The number of people every time continues to grow, while the amount of land can not increase. This is a classic theory that simply explains why land prices continue to climb from time to time.

4. Long Term Investment

Compared to deposits, gold or other investments, the property has a long-lasting character. The property business has a horizon (duration) of an average investment of 3-5 years and rises between 10% to 20% per year.

5. Protection against Inflation

Traditionally, people buy land and buildings to keep these investments from being eroded by inflation.

So investors are sure to buy property, the value of investment will not go down like the value of the currency eroded inflation. Even because of the nature of its scarcity, the value of that investment continues to increase over time.

6. Good Collateral

Unlike financial investments, property is the most solid collateral or guarantee. Even in some countries, banks do not hesitate to lend funds up to 80% of the value of collateral.

7. Pride of Ownership

Compared to other types of investment, the sense of ownership of property is generally higher. So ancient, landlords were associated as rich people. This is because the property can also generate income from the lease.

Here are the characteristics of potential property locations

Location, location, and location. Is the main point that people are most concerned about when looking for a property. Whether it’s for living or as an investment space.

And in fact it is in line with the survey results showing 9 out of 10 people say the location is more important than the price when looking for a home. Do you agree?

In addition, property seekers in Indonesia considers environmental security as an important factor in considering the purchase of new homes and new apartments. It also includes the development price that can be seen through Property Review.

For investors, selecting the right location would have an effect on the gain of the gain alias to be achieved. Typically, the best-in-class property is capable of yielding 20% ​​in one year.

In the opinion of experts in the property, a good location should qualify in relation to supply and demand. Here are three criteria;

  • The location of the property is easily visible from the passing vehicle. The more vehicles passing the location where the property is located, the value of the property is higher because it has easy access.
  • The location of the property is rarely found. For example, the location of the property with lake, beach, sunset, sunrise, hilltop, mountain or landscape features.
  • The location of the property is close to the business center. It is the place where demand is increasing, but not in line with the supply. In economics, it is known as ‘demand is much higher than supply’.

Right Steps Buy Empty Land

Buying lots or vacant land is usually done with the purpose of constructing buildings with different concepts. Designing the construction of buildings from scratch, for some people is considered more satisfactory.

The design of a private home is not only about taste and aesthetics, but also tailored to the needs and everyday activities.

Without a building standing on it, the lot is usually offered at a somewhat sloping price. There are several factors that affect it. For example, road access, environmental conditions, or land history itself.

Noteworthy, do not let the price tag tilted caused by the status of the problematic soil. Therefore, unclear land transactions are particularly vulnerable to cases of ownership disputes.

So how to buy vacant land safely and according to the correct procedure?

Checking the ground conditions

Before buying land, check directly to the location to find out the neighborhood lot. Is there adequate road access? What is the condition of the territorial boundaries of these lots?

Know also the type of soil. Because if you want to live, the type of soil will affect the quality of the water it produces.

Avoid buying land near rivers, factories, high-pressure electrical lines to keep the risk coming in the future.

For investment purposes and the prospect of rising property prices, you also must be keen to see the development of the surrounding environment. Are there complete facilities such as schools, health services, shopping and transportation access nearby?

Knowing the land allotment

Before buying a plot of land, you must know the status of the land and its current designation. For example is there any urban planning plan for the region.

You can check the use of land reflected by the Outbreak (Floor Coefficient of Building) and KDB (Basic Coefficient of Building) at the location through local officials.

There are some people who originally buy land without knowing the land allotment. As a result after purchased just know that the land is a green land that should not be used to build the building.

Knowing the latest projects such as public facilities or infrastructure that will be built by the government around the lot area can also be an added value of your investment.

Know the status of the land

Make sure the land to be purchased is not in the case of a dispute, such as confiscated land or inheritance land that has not been split his property.

Legality of land ownership must be verified by an official certificate listed on behalf of the owner. You can ask local notary’s help to check the legality of the land.

In addition, you also need to check the condition of the land as wide and its location, whether it is in accordance with the letter shown (in this case the certificate).

Perform the procedure correctly

Finally it should be known that in the purchase of land, strong evidence is required in support of the sale and purchase process. The process of buying and selling is not only evidenced through the receipt of regular purchases. You need to make a legal deed or a legal deed of sale and purchase of his position in the eyes of the law.

After purchasing, we recommend you switch ownership on behalf of you directly. Ask the notary’s information as an intermediary for the clarity of procedures for the processing of land ownership letters in the land office.

5 Things to consider before investing home

Although quite safe, investing in property is not without risk. There are a few things to note that your investment is secure and optimal profit.


Value or price of a plot of land and the speed of price increase is not the same in different places. Land in the city is not the same as in the village. Land in the city center, though in a “gang bumper”, is not the same as the land in the suburbs.

Land in an industrial area are also not the same as the area of ​​housing, and so forth. land prices rose fastest course is in the central business districts as much demand so it is relatively easy to be traded or illiquid. Because it is more expensive.


Do not buy the land still unclear status or pledged to another party (eg a bank). Or the land is still in dispute in a court case because of some cases and others. Instead, the land was not purchased at risk because the risk of conflict in the future is huge.

Land documents

Make sure that the land purchased complete documents. Such as land certificate, Permit building, if there is a copy of the building have the blueprints of the building (blue print). Examine the data on land documents with the physical reality (land area, location, period of validity, etc.).

Assumptions return on investment

Good property investment is yag can provide income to you, either in the form of fixed income (from rents) and the potential price increase (the difference between buying and selling price). Calculate the number of return assumption of investment returns you can get from rising land prices in the area.


Return on investment will be reduced because of the costs, for example the cost of purchasing land, the annual United Nations, renovation or maintenance, electricity, telephone, cleaning, and more. Keep you could squeeze costs as low as possible as mentioned above.

How so you can have a house within a year

Year had changed again. Do you plan to own a home in the past year has been realized? Buying a home is one of the biggest steps in life, hence the importance of planning detail in it so as not to regret later on.

And if your dream to have a home yet to materialize in the past year, the beginning of the year as it is now is the time for a new plan. And to help realize your dreams, then consider the strategy to buy a house within a year.

Early Years – Start Saving for a Down Payment (DP) House

Admittedly, save money with discipline is hard to do. Expenses such as car repairs, health, or buy a new gadget has always been a thing that makes you so hard to save.

However, if you have a target next year to have a home then it is time you save with discipline. As you already know how much should be collected for a fee DP homes, ranging set aside income each month.

Third Month – Check Credit Status

When about to ask the Home Ownership Loan, the Bank will check how the quality of credit you currently have. Fix when there are debts for which payment is not smooth. Remember, a healthy credit card bills maximum of no more than 70% by number of the card limit.

Sixth Month – Start checking residential neighborhood

It’s time to start visiting homes that had already been the target you. And because the house will be a lifetime investment so make sure that you do not miscast.

Check whether residential location close to public facilities such as schools and hospitals. Calculate also the distance of ‘candidates’ work location in your home.

If possible, you can also figure out your target home surroundings. Eg neighbors who live in the housing, is mainly inhabited by a young family or not, and so forth.

Ninth month – Do Research Banks / Financial Institutions

If you’ve chosen housing which would be the target, it’s time to do some research for filing Housing Credit. Especially if you will take a mortgage with such a long period of 15-20 years.

Some people choose to take a slightly higher mortgage but have a fixed rate, and some people choose a floating rate. Also check what documents are needed to apply for it.

The tenth month and next – Start Contacting Developer

You have defined housing which would be an option and has also done research on the bank will provide housing loans. Next you must contact the developer to get information about the home you seek for this.

Also check that your savings are sufficient to pay DP. Buying a home with good planning will certainly make this process go well too.

Tricks to Get Home with Best Prices On Exhibition

Exhibits properties for developers – and of course also the bank – an event in which they had the opportunity to market their various products. By contrast, in the eyes of consumers, this is the event to get a hunting dream property.

All that is offered is lucrative, can make even dark eyes. Yes, you must carefully choose than to be sorry later. Therefore, you should prepare yourself before hunting properties in the exhibition.

And according to Ike, the following are their points.

1. Know your own character

Ask questions of yourself. Are you ready to live in a remote location? If the answer is yes then you can choose the housing that is usually located in the suburbs.

Or maybe you are ready to live cheek by jowl in the city center so that your mobility is easier to work? If so, the apartment is suitable for you

2. Understand your capability

Consider your financial capabilities so you can quickly determine the price range of the property you wish to buy.

At least you can enlarge the limit if combining your income with a spouse. Only 1/3 of the amount is the maximum value that will be the mortgage.

If you already know your abilities then you stay focused developer who has come to the prices in that range.

3. The purpose of your life ahead

Think of five to 10 years into the future. How would you give education to your children, how health facilities such as hospitals would be a reference care of your family.

All that you need to think because it will relate to the selection of the location of your property.

If the three points you have to understand the next steps will facilitate the hunt for your dream property.

So the next step of your stay to art exhibitions, take advantage promo offer and of course also carefully read its terms and conditions. Remember, do not easily lured. Especially developers and banks that are new or lesser-known reputation. For this do not be lazy to find out. Note also who the people behind the new developer. If indeed his reputation reliable, no need to hesitate.