Investment includes basically two things, namely "issued today to expect to benefit in the future" and "issue with certainty to an uncertain profit." Investment property or real estate, as according to the above definition, it simply means issuing or investing in assets in the form of land and / or buildings on it. Forms of investment other than the property is: stocks, bonds, options, deposits, gold, dollars and more.
Here, most people invest because motivated by hope of gain is so high. There are at least six benefits in investing property, namely:
Appreciation of the value-added (due to its limited and does not move / immobility).
The added value of development (such as commercial buildings or areas made the farm.
The existence of income from operating activities (rent).
Is a good collateral.
Protection of purchasing power to inflation.
It is a pride for the owner or wearer.
In addition to the above benefits, investments in this area could potentially also in terms of losses. There are at least six disadvantages, such as:
Destroyed when an earthquake or disaster.
Illiquid and the presence of time constraints.
Load management and care.
Depreciation / depreciation of buildings.
Government control, such as rules of taxation and others.
Legal and regulatory complexities.
In terms of property investing, most people have two different purposes. The first objective, the investment does only short term (short-term investment), in which he invests aiming for resale, such as the purchase of land, houses, house shops (shop) and others then resold to another party.
The second objective, the investment has a long-term nature (long-term investment), where he aims to be owned and / or then leased, such as villas, houses fuction, office buildings, shopping centers, hotels, sportclub and so on. Here factor "pride" owners seem more dominant.
But whatever the goal, many people are looking at investing in property more attractive and more profitable than investment in other areas. This is understandable because almost everyone thinks that there is no history, especially of land and house price falls. Every year it is certain the price will increase and continue to increase in subsequent years.
In science a little sophisticated real estate mentioned also that to be considered in property investment there are five things, namely: income, depreciation, equity build-up, appreciation and leverage, or abbreviated IDEAL. The explanation is as follows:
Income is income from investment property leased. A simple calculation of the percentage of rental value per annum on the value of the property, and in the year to how much capital investment will return. For example, the property value of Rp 100 million and Rp 10jt rented per year, so in year 10 will return capital.
Depreciation is the allocation of the cost of an asset is property that the elements of cost accounting. Usually this is done in many companies, which include depreciation expenses as company expenses, while the assets remain the property has economic value.
Equity build-up is the value of shares held by investors on a property that has been borrowed and amortization of loan principal. For example, he bought a property worth $ 1 billion in bank loans and pay 800juta Rp Rp 200juta advance. After repay over a specified period, the loan stay of Rp 700 million, and assuming the market price had not risen, then he got the build-up equity worth USD 100 million.
Appreciation is the increase in the value of a property. For example, a property purchased last year for USD 100 million, and this year to Rp 120juta, there is appreciation of Rp 20juta in a year. Other more popular term capital gain is the gain or abbreviated. This is the main reason for people to invest in property.
Leverage is the use of borrowed funds to increase the benefits of property investment. To leverage a little difficult to explain here in general, because they have seen a case by case and not many people get leverage because it involves the lender (bank or third party) that need to learn more details before granting a loan.
But any form of investment, property investors should still take into account three things, namely: calculate the cost of the investment itself, how much the usual results obtained from the investment are planted (yield or return), and when those results can be enjoyed.
Here, most people invest because motivated by hope of gain is so high. There are at least six benefits in investing property, namely:
Appreciation of the value-added (due to its limited and does not move / immobility).
The added value of development (such as commercial buildings or areas made the farm.
The existence of income from operating activities (rent).
Is a good collateral.
Protection of purchasing power to inflation.
It is a pride for the owner or wearer.
In addition to the above benefits, investments in this area could potentially also in terms of losses. There are at least six disadvantages, such as:
Destroyed when an earthquake or disaster.
Illiquid and the presence of time constraints.
Load management and care.
Depreciation / depreciation of buildings.
Government control, such as rules of taxation and others.
Legal and regulatory complexities.
In terms of property investing, most people have two different purposes. The first objective, the investment does only short term (short-term investment), in which he invests aiming for resale, such as the purchase of land, houses, house shops (shop) and others then resold to another party.
The second objective, the investment has a long-term nature (long-term investment), where he aims to be owned and / or then leased, such as villas, houses fuction, office buildings, shopping centers, hotels, sportclub and so on. Here factor "pride" owners seem more dominant.
But whatever the goal, many people are looking at investing in property more attractive and more profitable than investment in other areas. This is understandable because almost everyone thinks that there is no history, especially of land and house price falls. Every year it is certain the price will increase and continue to increase in subsequent years.
In science a little sophisticated real estate mentioned also that to be considered in property investment there are five things, namely: income, depreciation, equity build-up, appreciation and leverage, or abbreviated IDEAL. The explanation is as follows:
Income is income from investment property leased. A simple calculation of the percentage of rental value per annum on the value of the property, and in the year to how much capital investment will return. For example, the property value of Rp 100 million and Rp 10jt rented per year, so in year 10 will return capital.
Depreciation is the allocation of the cost of an asset is property that the elements of cost accounting. Usually this is done in many companies, which include depreciation expenses as company expenses, while the assets remain the property has economic value.
Equity build-up is the value of shares held by investors on a property that has been borrowed and amortization of loan principal. For example, he bought a property worth $ 1 billion in bank loans and pay 800juta Rp Rp 200juta advance. After repay over a specified period, the loan stay of Rp 700 million, and assuming the market price had not risen, then he got the build-up equity worth USD 100 million.
Appreciation is the increase in the value of a property. For example, a property purchased last year for USD 100 million, and this year to Rp 120juta, there is appreciation of Rp 20juta in a year. Other more popular term capital gain is the gain or abbreviated. This is the main reason for people to invest in property.
Leverage is the use of borrowed funds to increase the benefits of property investment. To leverage a little difficult to explain here in general, because they have seen a case by case and not many people get leverage because it involves the lender (bank or third party) that need to learn more details before granting a loan.
But any form of investment, property investors should still take into account three things, namely: calculate the cost of the investment itself, how much the usual results obtained from the investment are planted (yield or return), and when those results can be enjoyed.
