Real estate investment is one type of investment that has high value. Real estate investment is a promising business in the future with great profits. Unfortunately, despite the tempting opportunities and profits, establishing a real estate company is not easy because of many challenges.
However, if you have the opportunity to start a real estate business, take it. If not, create the opportunity yourself.
Tips and Tricks for Establishing a Real Estate Company
As a pioneer, starting a real estate business must consider many factors, both internal and external. To achieve success in the real estate business, you need the right tips and tricks. Here are some tips and tricks.
1. Know the Purpose of Real Estate Investment
When starting a real estate investment, you must first know the end goal. If you know the goal, you can more quickly choose opportunities that support the achievement of that goal.
For yourself, something can be an opportunity. But for others, not necessarily. Therefore, recognize the purpose of the real estate business so that you can assess opportunities objectively.
For example, in real estate investment, first determine whether it is for a first residence or a rental investment. If it is for rent, the choices can be a house, apartment, or kiosk.
If there is no opportunity yet, create one. For example, contact a property agent, save the real estate agent’s contact, and ask for information as needed. This strategy is effective for finding properties according to target location and type.
2. Determining the Type of Real Estate to Invest In
The opportunity for a real estate company is greater if the type of real estate chosen has a high price. Reporting from the YouTube video @Aloysius Jasin, residential properties such as houses, apartments, and condominiums are the safest investment options for novice investors. Everyone has some knowledge about housing. Therefore, it is suitable for starting to invest.
If you are just starting to learn about property investment, focus on the three types of residential properties mentioned above. It is better, even though it is the first house, to also consider it as a long-term investment asset.
Don’t just think “The important thing is to have a house after getting married”. It would be a shame if it was not used as an investment. Look for a first house that can be an asset and increase in value in the next 5 to 10 years.
The best investment today according to many experts is a single-family residence. In America, this type means a stand-alone landed house. In Indonesia, the equivalent is a regular house, not an apartment.
Some apartments are good, but usually only for experienced investors who want to diversify. Good apartments are usually expensive, have complete facilities, and are occupants from high social strata. This makes apartments easier to rent at high prices.
However, in general, residential houses are still the best choice for investment. Landed house investment is beneficial due to its high capital gains. For example, it increases by 75% in 5 years, but the rental yield is low, approximately 2% per year.
For example, when buying a house for IDR 2 billion, the annual rental yield is only around IDR 40 million. It used to be 5%, now it is only 2 to 3%, but the increase in house prices remains high.
When demand is high and there are restrictions such as zoning regulations, the value of the existing property will increase. For example, in Jogja, land restrictions by the government have made land increasingly scarce.
The Sultan tightened land ownership by people from outside the area. This increased the value of local property. Landowners in Jogja benefit greatly because prices have increased drastically.
Investors can predict areas that have restrictions to anticipate price increases. For example, in Jakarta, there were once green zoning restrictions and KDB-KLB regulations.
These regulations limit how much land can be built on. The smaller the area that can be built on, the more expensive the land is. This is a great strategy for choosing potential investment locations.
3. Don’t Push Yourself When Taking Debt
Excessive debt to build a real estate company can cause stress and major financial risks. Some banks even take advantage of defaults to seize assets. It’s best to take the debt with full calculation and the ability to pay.
4. Learn from Those Who Are More Experienced
Young people are often jealous of friends of the same age who are already rich. However, many forget that being 30 does not necessarily guarantee happiness at 60. Learn the stories of more experienced real estate pioneers for a wiser life guide.
5. Consult Property with Legal and Financial Experts
For property transactions, use an experienced notary or consultant. If the transaction is very complex, consider also involving a property lawyer. Consultation with an accountant is important so that taxes and legality remain safe.
6. Avoid Tax Fraud, Comply with the Rules
As a real estate company owner, you must be honest. Never try to lower the transaction price to avoid taxes. This can harm other parties and is a legal risk. Now all data is online, so you have to be very careful.
7. The Key to Success in Property is Persistence
Success in the property sector can only be achieved through perseverance. If you fail 10 times, try again for the 11th time. Never giving up is an important foundation in the world of investment.
True wealth requires process, time, and perseverance. If wealth can be obtained easily, it is usually also easy to lose. That is why establishing a real estate company requires sincerity and great determination. /endah
