However, it does not mean that the
developers may sit nicely only waiting for the buyers to come. Before the
bullish sign appears, they must be prepared for anticipating with some proven
strategies. According to the capital market observer, Jimmy Dimas Wahyu,
there are several issues that must be considered. Among others are to ensure
that PREP (product, reputation, engagement and performance) are good.
Please remember that buyer is the king.
Therefore, developers have to approach the buyers (investors). In addition to
common gathering that they usually have, they can invite those investors to
participate in supervising the construction and quality to be finalized within
the right time delivery.
On the other hand, the investors must be
more careful in choosing properties. The problem is, many of them got the wrong
step because they rely on emotion. Because of falling in love with the
property, they might be buying wrong property, costliness or exceed their
financial capabilities.
Property Highly Influenced By Macro
Economy Conditions
1. Make sure that we make money at
the time of purchase
It is closely related to the skills in
assessing the property. An investor should know that the price of a property is
favorable or even overpriced. This expertise shall give some gratitude to the
mastery of the investor on a particular area. For example, the market price of
a property is IDR 1.8 billion. He would be already making money if he is
successful to buy it at the price of IDR 1.5 billion.
2.
Never mentioned the figures first
During negotiation, usually those
who mention a figure first will be at losing side. Let the seller mention the
figure of our bid first. If we submit our bid in advance, our initial price
might be higher than the seller's desire.
3.
Buy from which it intends to sell
Many properties are marked with a
"sold" signs, but in fact the owners are not so intent on selling
their properties. The case like this happens quite often when an owner only
wants to know about the selling price of his property. If you encounter a
seller like this, leave it. Just find another property instead.
4. Like the transaction, not the
property
An investor must hold this principle
firmly: "property must generate positive cash flow". No matter how
good a property is, how bad they happy with it, if it does not generate any
positive cash flow, it is certainly not worth it to be a great investment. This
is an investment property, not residential.
5. Buy without or with little down payment
Buying with a minimum down payment will
bring an impact of higher rate of return. This is one of the good nature of
property investment - it can be bought without requirement of paying in cash.
There are many kind of payment instruments that we can use to help the process
of the purchase, including the loans from the bank and the payment delays
according to mutual agreement of the owner. The benefit of this little pattern
is that we can allocate our money to buy the other property with similar
patterns. Hence, at the same time we might be able to have several properties
with certain higher price than the money that we spend during the time we buy.
6. Do bandwagon
The property business industry is very
influenced by the condition of macro economic. The property has its own cycle.
It is not always good conditions for investment in property. There was a
certain time when you will not be able to generate positive cash flows in a
transaction. Therefore, being an investor requires a strong resistance. If an
investor does love the world, the loss in a transaction will be unnecessarily
cause him to retreat.
7. Hold as long as possible
An investor should be able to hold the
property for certain period of time. So, it is the nature of the property: that
the prices will always go up, especially if it is held for more than 10 years.
Many investors have created success stories when they prove that within 10
years property prices could double to 500-1000%.
Source: Property-in Magazine 2015
Editorial: Marketing Communications
of +Premium House
