Tips On Property Investment

To consider when investing in property in the field offices include:

1. Capital Safety Assurance Everyone who invests will always expect the safety of invested capital. Good means that the value of invested capital is not reduced and even increased.
2. The Revenue Assurance revenue stream will be obtained by investors, the size of the share of income that will be taken Decree investors. The leased property is income derived from rental income
3. Easily Purchased and easy sale to the difficulty of an investment bought or sold in terms of cost, time and procedure. Terms such as details of the purchase agreement, notary services / PPAT, advertising and property taxes need to be considered.
4. Can be broken down into small units typically require capital investment that small, relatively easy to sell.

Here are some characteristics that are in the field of investment property:

1. Investment is more long-term.
2. The cost to buy and sell is relatively high.
3. The time it takes to buy and sell old.
4. Proof of ownership can sometimes make an important problem.
5. The amount of capital needed to buy land and buildings is relatively high and can not buy some of its shares.
6. Maybe there are many problems in the management in terms of ownership.
7. Land is open to influence legislation and policies and politics of the country, where this may have a negative impact on an interest in the land.
8. Ownership of land is a symbol of "social status" someone.
9. Constantly rising land values over time and is a good control of inflation.

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Investment In Property

Investment in property is still a major choice most people, because people think that it is one of the best ways to grow your money. Property investment is generally considered more secure than other types of investments. Why your own control or manage the investment, so you can control almost everything. But it is not the only advantage in property investment, because the most interesting fact of this property investment in allows you to use other people's money to start investing.

Most other investment products is much influenced by external factors. For example prices in the stock market can go up and down rapidly because even significant issues or gossip about politics, government policy, national security, economic conditions, or as bond prices fall when rates of inflation and interest rates go up. Compared property was also affected although external factors, but the changes are not too fast, for example, house prices could not change course just a day but it took years.

Benefits of Property Investment

By investing into the property, you have the opportunity to get a great investment return. If you see Donald Trump an American property entrepreneur or Ir. Ciputra from Indonesia, they became rich from business property. Bank also has a property, if we look at building high-rise headquarters of a magnificent, not to mention dozens of branch offices
There are many ways to invest into the property. You can start by buying a house, shop, build a house rental, other commercial buildings or vacant land. Of all these options, buying and selling a rental home is better for those who choose to start investing in property, then a little savings from the rent to be invested back .. If you look at a lot of people are interested in creating a rented house, because with a landlord lets you have a property that you can control yourself, then sell it later. The good news is you do not need much money to start your investment in property.

It's important to understand why the property is often the primary choice of people to develop the property, why not because the property is not risky. Like any other investment in the property also has constraints such as the tenants are late paying rent, moved without telling, damaged buildings, whatever difficulties may occur. The point is if you are willing to bother with such matters, the investment in the property is for you.

Using Other People's Money

One of the most interesting thing from an investment in property is that the system created in such a way that allows you to use other people's money to finance your investment. This is one of the most important concepts in business property that can make you richer than other investments.

On the other investment types is the large amount of investment is determined by how much you are willing and able to pay with cash. So to buy another investment balls you pay cash with the assumption that using your own money. We take the example of investment in capital markets. To buy shares then you have to pay cash entirely from all the transactions, unless you do the actual trading margin is very risky. So is investing in bonds, mutual funds, deposits and savings in the bank, even gold and collection items that have art value, it requires that all cash payments.

Investment in property is not the case, you can just pay for the house down payment of 10% to 30% of house prices in order to have the goods then the rest can be financed from the loan to the bank. Not only the banks, the developer can give relief payments for an advance payment of the purchase of goods too.

Opportunity to use other people's money materialized in the form of financing is referred to as leverage, or ability to multiply things. For example, the first day you managed to get a home loan with a down payment of Rp 30 million, the Day of the same direct your cash assets increased to $ 100 million. By using the investment home financing can be doubled in two ways. First, the more money invested the more other people's money or financing you can get, for example, with money USD 30 million, then you can only buy shares up to Rp 30 million. But with the same amount of money if you invested in property, then you can buy a house for Rp 100 million. Where you put a deposit on a house for USD 30 million, and banks to finance the remaining amount of Rp 70 million, then you become the owner of a building for Rp 100 million. Does not this amount is more than 3 time 300% or double? Unbelievable.

Why Real Estate Benefits

Using other people's money or use the financing is just one of convenience that can be used to invest into the property. But other than that there are many benefits of investment in property that makes it very attractive investment than others.
1. Cash Flows, "Cash Flow",
Cash flow is the money you receive on a regular basis for the money you invest in an investment. such as interest earned on savings and deposits are cash flow because it provides income to you. In property, the rent can be a revenue or cash flow for you. The more buildings you can rent the greater the cash flow.

2. The value of your ownership of the house increases.
Value your ownership or rights to property investment financed from the concept of using other people's money was going to increase, far exceeds your debt or obligation. Rights of ownership in an investment person is known as equity. For example if you purchase your property investment of Rp 100 million, financed by the bank's USD 70 million, the remainder of USD 30 million using your own money. So your ownership rights to the investment value of Rp 100 million this is Rp 30 million or 30% of them. Ownership will increase in value because of debt repayments reduce liabilities. In addition your property rights are also increasing because of rising property values. Your property value will increase due to inflation, which makes the price of goods and services, including property increased. As a result of this inflation is not just the rising property values, but you also have the opportunity to increase cash flow or your regular income to increase his rent was in line with inflation. The increase in the value of this property can even increase your borrowing power. Banks usually provide additional loans based on rising prices of surety or property conveniently. You can use this money to pay off old debt balance, and the rest of the money from these loans can enter your bag. Then for a new loan installment adjust the rent income.

3. Opportunity to build a bigger building again, after you successfully pay off their debts, you'll have more money to be allocated, for example, to make existing properties become even greater. Many property investment starts from a small building, but because there was income from the rent that could cover monthly loan repayment, then make the property into a larger building became very possible.

Is it hard to Get Loans For Investment Property?

The most difficult part of any business is to get the money to finance the business. People are still very difficult even to borrow from the bank's business loans to start a business. Banks usually only want to give loans only to businesses that have been running 2 years. This does not apply when you want to borrow money to the bank to buy a house. No matter whether you just bought a house for the first time or for the umpteenth time, home loans may be given by the bank for the purchase of any home. Apart from the mortgage bank is also considered a type of credit risk is lowest.

For home loan mortgage amount adjusted to your income, so that the bank assumes that debtors have had a stable income that can be used to pay the monthly installments. Then in terms of its guarantee of the building itself, which we know continue to experience price increases, so do not be surprised if the guarantee is generally able to cover its debt.

Steps To Start Investing In Property

Although there is a chance to use the loan to finance your property investment, does not mean you become complacent. Investment in fixed property requires a commitment of money and time. So do the research and establish a plan before investing in property is very important. Because the initial step and most important once you decide to invest into the property was to learn everything about the property as much as you can.

• Continue to learn, there are many sources of information can you can to learn about such property investment from the book - books, courses, seminars, as well as the Internet and others. To learn more about your property business can also take a part-time job as a property broker. The advantage, besides you can practice what you learned from the various sources of information, you can also get sales commissions from selling your property. Not to mention the opportunity to build a network or networks that would be very useful to help your property business later. Doing research in advance will make you "aware" of the risks or problems that may arise regarding the ownership of such property can be a problem with the tenants, the costs of building maintenance.

• Work with the home seller's agent or property broker, once you equip yourself with adequate information about the property business then look for a home seller's agent or property broker who will help you understand more about the property business. Find a dealer who had experienced at least 2 years, they usually have far more control of business property.

• Research on interest rates, rising property prices, rents, if you want to use financing from the bank interest rates compare bank loans with one another and seek the most competitive. Then also on the assumption that property prices so that you can determine approximately how much the selling price someday. Do not forget if you want to get some money from renting house, before determining rents search for information about the prices reasonable rent for the area adjusted to the condition of the building.

Your Action Plan

Once you have determined to invest in property, then you just set the next goal of your property investments are specific and measurable. Suppose you want to get the money USD 100 million that you invest in property investment or purchase of property E can be USD 1 M in 10 years. Once you set a goal then you can determine what type of property suitable for achieving these goals, whether residential, commercial buildings .. Calculate how much money is needed to invest, property market conditions, then the amount of rent you can expect, as well as how many buildings you can buy. By doing research as suggested above, then you can estimate how much money should you provide and how much investment return could be expected to continue to grow. You can even predict how long the property should you stand before you sell it. By making financial goals will give you the kind of guidelines to start your new business, take actions necessary, to anticipate risks, then make the investment.


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World Gold Prices, Short-Term Prediction and Long Term

World gold prices last week showed declining trend indicated by the U.S. $ Index.
We know the world gold price in U.S. $ is inversely proportional to the power of U.S. $, so when the U.S. $ is stronger - the world gold price in U.S. $ decreased. Can be roughly predicted that if the U.S. $ index reached 83, world gold prices will be below U.S. $ 900/oz. This course if all things being equal - ceteris paribus.

Although the world gold price in U.S. $ in the short run down, does not mean prices in Rupiah (Indonesian currency) will also fall. If the U.S. $ strengthened, Rupiah otherwise would tend to weaken - because the scales / comparison up. So depending on where the greater the decrease in gold prices compared to the weakening Rupiah. When the Rupiah could survive such conditions are present (fixed), then the gold price decline is a new world will be followed by decline of gold prices in Rupiah.

What does it mean when a nation's debt continued to rise far beyond the production growth?, She will experience symptoms bankruptcy. Physically, they may still look strong, but they are technically bankrupt. When a country has a lot of debt and headed for bankruptcy, the money becomes worthless.

Upshot: the price of gold in the short term is likely to be at a low price range in one, two or maximum three months. After that the world gold price in U.S. $ can move along with the decline of wild value of U.S. $, high inflation or even hyperinflation.


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Know Your Gold Investment

Investing in gold could use some variety of media such as gold bars (bullion), gold coins, gold certificates, gold savings, mutual funds with underlying gold mining companies, as well as commodity futures contracts in gold.

Pros & Cons Gold

Gold values tend to be stable and inflation has no effect (zero inflation effect). It is very rare that gold prices fell. Gold can also be used for the collection and jewelry.

Gold is also good to diversify. Suppose you have invested in stocks, bonds, mutual funds, property, or others; buy gold could be a good alternative. Moreover, in some countries reportedly declining gold production. Because of increasing scarcity of gold, surely the price will always rise.

Another advantage, the price of gold was set in USD. If an increase in the value of USD, you get two benefits at once, ie the increase in the dollar and rising gold price itself. However, if the opposite happened, it could be a double-edged sword.

When compared with investing directly in USD currency, gold is more profitable. In Indonesia, money changer currency appreciate cheap long output or folded currency. Not to mention there is a risk of false serial number. As a result, save the CAD currency must always be updated. Unlike the gold that can be bought and taken any action for a while.

The downside, especially in terms of storage and handling. Save a "hard assets" like gold is relatively risky and expensive. In addition, if the storage is less good, though covered with protective cover, allowing the oxidation and discoloration. Special-shaped gold coins, if you fall, dented, or chipped, it is difficult to be repaired again and can reduce the price. If I say, gold is less suitable for those who are careless or reckless.

Other deficiencies, the return is relatively stable and less exciting than stocks or property. Also, it is not advisable to invest in gold only in the short term (1 year or less). So, based on the strengths and weaknesses, in my opinion tend to be more appropriate gold for "hedging" than "investments."

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Investment

Investment is a term associated with the finance and economics. The term is associated with a form of asset accumulation with a hope of future profits. Sometimes referred to as the investment of capital investment. Talking about investments, which generally arise in our minds is invested in the form of money in order to produce excess profits. For example we have the money to buy stocks, buy property, joint venture in an enterprise, and the like.

Investment products
Some investment products known as securities or securities. Where the definition of securities is an instrument of ownership which can be transferable in the form of securities, stocks or bonds, evidence of debt (Promissory Notes), interest or participation in a collective agreement (mutual fund), right to buy a stock (Rights), Warrant to buy shares in the future or instruments that can be traded.

Investment forms
• Investment is expected to increase soil populations and the use of land; land prices will rise in the future.
• Investment education with increased knowledge and skills, job search and the expected higher income.
• Investments in shares are expected to benefit from the company's work or research.

Investment Risk
Investment as well as additional income a person can also carry the financial risk if the investment failed. Investment failure is caused by many things, among them the safety factor (either from natural disasters or due to human factors), the rule of law, and others.

Some Types of Investment
Some people talk about investing. There is an investment company, investing their own there is also investing with friends. What will we talk about here is investing in general.

In financial planning, investment vehicle is an important one. A financial planning can not be achieved without investment strategy.

Several types of investments that are often used or bought the community :
1. PROPERTY
2. GOLD
3. BANK PRODUCTS, savings, deposits and others.
4. FOREIGN CURRENCIES
5. PAPER ASSET ie stocks, mutual funds, bonds and others.
6. INSURANCE

Property
20 or 30 years ago, when development in the cities was intense, there were many people who got rich because of the land suddenly becomes expensive price. So that parents are often advised his son to buy land for investment. Of course, investing in property is good, but today with different times of yore. Sometimes there is a house that eventually will not sell, because right in front of the house was built the overpass. But it can be concluded if a good location drove property prices equal to a particular location.

One relative told me, that when he built his house in 1995, buying land and building cost of 375 million. Current market price of 3.5 M. Rising nearly 10 times as much, but when taken an average increase of 15 times. Unfortunately it has offered 2 years but still there’s no one who wants to buy.

Gold
What we are talking about is pure gold, not gold jewelry. From the past until now the gold price rise is proportional to the inflation

Savings, Deposit.
Usually given a lower interest rate than inflation. Use the savings and deposits to save money as an emergency fund

Foreign Currency
When we use this foreign currency as a long-term investment tool, then the increase is in accordance with inflation, especially the dollar. But when used to benefit a moment, can provide a big advantage when prices are volatile, and may also provide a loss.

Paper Assets
This is one investment instrument that is very attractive to be adhered. Various kinds of paper assets, such as Mutual Funds, Stocks, Bonds. The results depend on the investment with the economic conditions of micro and macro. For long-term investment objectives Mutual Funds can be an option, so that investment returns can be optimized. Investing in paper assets of many factors to consider:

1. Period of time (time frame)
2. Knowledge of investment
3. Risk profile of investors
4. Market conditions
5. Financial Condition
6. Age

The first thing to do is find as much information as possible through seminars, books, browsing, or ask the people who know better than to jump into one of the investment instruments you are interested. The main key when the time is still long and limited capacity, find an investment instrument that gives results greater than inflation. If inflation is less than the amount of funds should be set aside to be very large.

Insurance
There are some people who likes to invest through insurance, usually people like this do not want to bother to separate the insurance with investments. Usually people who are busy and do not have the time to learn about investing.


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