Property developers have ceaselessly advertised their latest condominiums. In Jakarta - especially in South Jakarta and the central business district (CBD)at least 6,422 units of 19 new projects were offered in the January-June 2008 period alone.
In the same period, 8,500 residential estate units were offered in Greater Jakarta. As seen in the graphs, sales rates of both landed houses and condominiums in area continue to increase.
Is it now the right time to buy? Not so fast. If you are indeed considering buying condominium units anytime soon, you may need to look into at least seven things before making a decision.
First, be proactive and never rush. Determine what you need, never fall far heavenly offeringsconcept, yield, special prices -during promotional periods.
It is always wise to actively collect all data about the properties you are considering. Discuss the matter with your spouse, family or someone that can give you a second opinion.
Second, you need to be clear on the kind of property you want to buy - whether it be a condominium, strata-title apartment, or town house. What is your motivation for making the investment; to support your retirement, or to acquire savings? Will you occupy the property or will you rent it out? If the first, will it be your first or second home?
If you are the occupier, then you are the end user. If so, you need to find a home suitable for the size of your family. Take some time to define your dream house with your family.
If you plan to rent your property out, you need to consider who will rent it, whether they will be expatriates, business executives or studentseach may have different market needs or cultures.
Third, make a realistic schedule for meeting with marketing agents of property developers. During the meetings, make sure you find out information on the following: Legal aspects, including buying procedures, signing of the selling-buying contract (PPJB), provisions to be agreed on and payment procedures, including down payments and bank loan installments.
With regard to loan payments, you need to choose a reliable bank that offers more than just low interest.
Fourth, find a win-win solution. Buying property is your aim and also your family's aim, and the purchase must benefit your future.
To achieve this, you need to understand all points of the agreement you sign with the developer, bank, contractor and any other parties involved in the transactions.
Fifth, how will you benefit from the property? Make sure you fully understand the type of property you are buying and how your family will benefit from it.
You need to find out how offers vary between strata-title apartments, town houses and landed houses and decide which suits you best.
Sixth, your home is the place for you to create synergy. Make sure your new property will cultivate positive synergy within your family and with your neighbors and the community.
In other words, a place where you can feel "home sweet home"; where you can enjoy interacting with the people you love.
Seventh, rejuvenation. Another important matter to consider is how you will develop your property in the future.
For a property that is still under construction, it is a good idea to investigate the developer's track record.
Regardless of your reasons, you need to take into account the location and accessibility of your property and its yields and capital gains.
Will it be in the CBD near your office, or in a prime residential area or in a suburb. Most importantly, the payment system you use to buy the property must reflect your income and budget.
Amid a time of land scarcity and rising demand for property, it is a smart move to buy property, whether for investment or living purposes.
A property has the potential to multiply capital gains or cash flow if leased out.
The writer heads the marketing team at Procon Indah.
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