Skip to main content

Home Buying Tactics For Investment

The real estate sector has proved to be a lot of successful people. No wonder so many people hunt for property units not only to live in, but also as investment assets.

Home Buying Tactics For Investment

However, just like any other type of investment, you must understand the ins and outs of the property world before you are ready to dive with hundreds of millions of rupiah in capital. Here's a clever tactic from Rumah.com for beginner property investors.

Make sure it's right for you

Are you alert enough to repair damaged buildings, from clogged toilets, broken gutters, or moldy walls? Property owners who own one or two houses usually do the damage to the building themselves.

The goal is of course to save costs. And if you don't like it or don't have the ability to do it yourself, then maybe this isn't the right kind of investment for you.

Paying Off Debt in Advance

Some investors may go into debt to start their portfolio as a businessman. However, it would be better if you avoid debt to start a business. At least, pay off your old debt first before starting to apply for a loan as business capital.

Unexpected needs in the future can become obstacles to running your new business.

Get Down Payment

Property investment generally requires a larger down payment than the first property buyer. This is generally determined by a number of housing loan banks. So, prepare more capital for extra mortgage costs.

Be careful with rising interest rates

The costs involved in housing mortgages may seem light at first, but over time, rising interest rates can become a new problem. It must be remembered, you must minimize the total mortgage installments so as not to erode monthly expenses.

Calculate the Profit Margin

Wall Street firms, often get profit margins ranging from 5% to 7% per year from the purchase of property because they have to pay employee salaries. On the other hand, the private investor should be able to make a profit of up to 10%.

Prepare for maintenance costs of about 1% of the property price each year. Other expenses, such as insurance, taxes and park maintenance, can also be included in the calculation list.

This is one of the most sensible investment options, both in terms of price, advantages, and clearly profitable!

Don't Buy Old Property

Maybe buying an old property and renovating it is tempting enough for you. However, if you are inexperienced, you might end up experiencing losses. Unless you have a quality contractor acquaintance whose service fee is quite affordable.

For that, choose a property with low prices but doesn't require a lot of renovation.

Calculate Operational Costs

In general, the operational account for your new property is about 35% to 80% of the gross rental price. If you set a rate of IDR 1.5 million for monthly rent and an operational cost of IDR 600,000 then your profit is 40%.

The easiest calculation is to use the 50% rule. So if the rental fee is IDR 2 million, the operational costs can reach IDR 1 million per month.

Comments

Popular posts from this blog

Knee Pain and Pain in the Legs? Do not underestimate and can be fatal!

Get Link Some people must have experienced pain or tenderness in the joint area, especially in the knee. But many people still underestimate and ignore this pain. In fact, if you underestimate it for a long time, the condition can get worse which later makes the treatment or management of the disorder more difficult. Orthopedic and Traumatology specialist at Siloam Hospitals Balikpapan, dr Hedy Wahyu Ramadhani SpOT, explained that there are various causes of knee pain. These include trauma, injury, infection, and inflammatory diseases. '' In addition, obesity or obesity can also trigger pain in the knee area. However, the most common thing is due to osteoatritis, "he said in a release statement. Keep in mind, osteoarthritis is one of the most common types of arthritis. The sign is when the joints feel sore, stiff and swell occurs. This disease, also known as chronic degenerative disease, is commonly found in elderly patients. Because as we get older, the bones in t

Know About Thyroid Disease, the causes and how to treat it appropriately

Get Link Thyroid Disease is a disorder of the thyroid gland. The thyroid gland, which is located in the neck, precisely below the Adam's apple, is one part of the endocrine system that functions to secrete the body's metabolic hormones. The pituitary gland and hypothalamus in the brain control the working system of the thyroid gland, where if the body has an excess or lack of thyroid hormone, the brain stimulates the thyroid gland to balance its levels with the body's needs. Common thyroid diseases are hyperthyroidism, hypothyroidism, goiter, and thyroid nodules. Based on the type of disease, thyroid disease can be caused by several factors. Hyperthyroidism A condition in which there is excessive thyroid hormone production which can be caused by disorders of the pituitary gland system in the brain, damage and inflammation of the thyroid gland. Hipothyroidism In contrast to hyperthyroidism, this condition is caused due to underproduction of thyroid hormones. La

NOSO (NOS) New Cryptocurrency!

This is an unofficial blog to explain about a cryptocurrency called NOSO or with the crypto code abbreviated as NOS. So much we see different types of cryptocurrencies emerging. Most of them collapsed and were unable to compete with others. However, unlike NOSO, this currency is completely new and is very well developed by a very enthusiastic developer who works day and night to keep NOSO getting better. How did the story start...? According to the developer through his blog nicknamed " Kreditzcoin " on the Bitcointalk site , they have started to create a new cryptocurrency project more than two years ago. But for personal reasons, they canceled it and returned all investors' funds. Until December 20, this project was revived with another name but still by the same developer and equipped with new features. About Noso According to literacy on the developer blog here, they are a small group of software builders who have developed completely new cryptocurrencies from scratc