Auspicious time for property investors<\/p>\n
JAKARTA (JP): If investors have planting seasons like farmers,
\nnow and sometime next year should be the right time for those
\nwith extra money to plant their seeds in property.<\/p>\n
Property analyst Panangian Simanungkalit says this is the best
\ntime to invest in property, as the appreciation of the dollar and
\ntight liquidity has forced many property companies to slash
\nprices.<\/p>\n
Suppose you have Rp 600 million (US$171,000) of money
\nremaining from the Rp 1 billion you set aside for portfolio
\ninvestment, and are wondering what to invest it in.<\/p>\n
Since the brutal fluctuations in the stock market make
\ninvesting in that sector out of the question, why not spend it on
\nproperty?<\/p>\n
But wait. How will you know that you have made the right
\ndecision in your choice of investment?<\/p>\n
Panangian says there are three steps to take before you
\nfinalize any property transaction: field survey, legal survey and
\nusing instinct.<\/p>\n
Before choosing, you may want to consider these three smart
\nchoices of land, small to mid-size houses and shop-houses.<\/p>\n
The most important step before buying the property is to
\ninspect the condition of the property and pertinent legal
\ndocuments.<\/p>\n
Check if there is progress in the area, if the development
\narea looks healthy and if all certificates and legal papers are
\navailable and in order.<\/p>\n
Find out if the developer is listed with the Indonesian Real
\nEstate Association or in the Office of the State Minister of
\nPublic Housing, to avoid fraud and costly deception.<\/p>\n
Of course, price is everything, but what is more important is
\nthe size of the property. You don't want to buy something that
\nwill end up a burden.<\/p>\n
Panangian says the most saleable plots of land are those
\nbetween 350 and 450 square meters. Anything bigger and more
\nexpensive would be hard to resell.<\/p>\n
For houses, better buy one no bigger than 150 square meters
\nand priced under Rp 75 million, or else there will be the
\nlikelihood of a tough resale.<\/p>\n
He says it is better to invest in a shop-house that costs not
\nmore than Rp 300 million and is in a strategic location. Keep an
\neye out for bargains from owners who defaulted on their payments.<\/p>\n
Make sure to check all the clauses of the payment system
\nbefore you pay. The same applies to legal papers and documents,
\nwhich should be in your hands before you say goodbye to your
\nmoney.<\/p>\n
Planning to get a housing loan? Look into the bank in which
\nthe funds are available.<\/p>\n
Some banks give higher interests rates on housing loans, and
\nthey are likely to give the loans readily. A word of warning
\napplies: those with higher interest rates may just be one of the
\n\"problem banks\".<\/p>\n
An interest rate between 22 to 25 percent would be considered
\nnormal, Panangian says, but 30 percent would be too high.<\/p>\n
Before putting your name on the contract's dotted line, check
\nif all the requirements have been fulfilled. Rely on the
\nsensible and traditional means -- your instincts -- in gauging
\nthe legitimacy of the seller. There have been many instances of
\nhit-and-run developers.<\/p>\n
Don't rush yourself, as property prices will stay a bit lower
\nfor at least the next two years. You have plenty of time to be
\nchoosy, and wary, in sizing up the property market. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/auspicious-time-for-property-investors-1447893297",
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"sponsor": "Okusi Associates",
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