Staretegy Invest in Property

Have the nature of long-term investment (long-term investment), where he intended to possess and / or later leased, such as villas, fuction houses, office buildings, shopping centers, hotels, sportclub and so forth. Here factors "pride" owners seem more dominant. But whatever the purpose, many people are looking at investing in property more attractive and more profitable than investing in other areas. This is understandable because most people assume that there is no history, especially of land and house prices fall. Every year the price will certainly increase and continue to increase in subsequent years. In the study of real estate that is also mentioned that a little advanced to be considered an investment property there are five things, namely: income, Beban, equity build-up, Appreciation and leverage, or abbreviated as IDEAL. The explanation is as follows:

1. Income is income from investment properties for rent. A simple calculation by the percentage of annual rental value of the property value, and in the years to how much capital investment will be returned. For example, property values and rental USD 100 million per year USD 10jt, so in year 10 will return their capital.

2. Beban is the allocation of the cost of a property which become elements of cost accounting. Usually this is done at many companies, which include depreciation expenses as the company's costs, while the property still has economic value.

3. Equity build-up is the value of shares held on a property by investors who borrowed and have been going amortization of the loan principal. For example, he bought a property worth Rp 1 billion bank loan and pay USD 800juta advances USD 200juta. After pay in installments over a certain period, the loan stay USD 700juta, and with the assumption that market prices have not climbed, so he gets a build-up equity amounting to USD 100 million.

4. Appreciation is the increase in the value of a property. For example, a property which was purchased last year for USD 100 million, and this year to Rp 120juta, means there has been Appreciation of USD 20juta in a year. Other more popular term is abbreviated as capital gains or gains. This is the main reason for people to invest in property.

5. Leverage is the use of loan funds to improve the profitability of property investment. To leverage a bit difficult to explain here in general, because it must be seen case by case basis and not many people get leverage because it involves the lender (bank or third party) who need to learn more details sebelum make loans.

But whatever form of investment, property investors should still consider three things, namely: counting the cost of the investment itself, how large the usual results obtained from the investments that were planted (yield or return), and these results can be enjoyed anytime.