Things to Consider When You’re Investing in Property


With Indonesia’s capital city ranked as the region's top real estate investment market in a report titled "Emerging Trends in Real Estate Asia Pacific 2013", it is no wonder that property investments are on the rise.

This year, the property sector is expected to continue benefiting from the country’s consistent economic growth, the central bank’s benchmark policy rate –at 5.75% since February last year, the continuous increase of per capita income as well as a pick-up in investment.

If you are currently thinking in investing in property, it might be a good time to do so. However, before you jump the gun, there are a few things you need to consider to ensure that you are spending your money wisely. According to Kevin Gunawan, an executive from property consultancy firm Cushman & Wakefield, here are 4 things to consider:


“First of all, you need to have a clear vision of what you want.” If you are investing for a home, make sure you tick off all the things you’d want in one before you make your purchase. 

On the other hand, if you are investing for the sole purpose of investing, make sure your purchase a property that is likely to be tenanted; it should be affordable to the working class as well as being close to shops and amenities.   


“It is much preferable for you to buy property from well-known developers to minimize the risk of having the project shut down midway or bankruptcy.” Make sure that the developer you’re buying from has a good portfolio and track record. If you are sure about its’ credibility, that’s one less big thing to worry about. You can then focus your attention on something else.   

Your Finance 

“It goes without saying that you need to find a property with a price that aligns with your available spending power. Don’t make rash decisions in the heat of the moment. You need to make sure that you have the means to pay and this requires careful thought and planning.” 

Pay close attention to the payment terms – how much is the down payment, how long are the installments – and figure out if a particular investment loan works for you. Make sure you do enough comparisons and research to guarantee that you have chosen the best deal that suits your needs.   

Inspection & Insurance

“Know the exact condition of the property you are buying. You need to know everything about it so you are aware of precisely what it is you are investing in.” 

With help from professionals, carry out pest and building inspections to reduce the likelihood of nasty surprises. Also, having insurance on all your property purchases is a smart thing to do. If you are thinking of leasing, you should consider landlord and income insurances too.

"Property investment will be one of the biggest transactions you’ll ever do in your life... Never be goaded into purchasing one and never fall victim to property gimmicks," added Gunawan.

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