Ultracialis.com – Come on, be a business boss and receive regular benefits at Ultracialis, Investment in property shares is one of the most popular business instruments, because property is an asset whose value will continue to increase over time. Similar to precious metals, property includes real property or tangible assets that can be seen in their form.
Although illiquid in nature, due to the growth in value in the future, asset holdings will continue to grow net assets. Therefore, in the long run, this is a promising investment choice for you.
What are the advantages and types of property stock investments? How to invest correctly in this instrument? We will cover all of them in this article.
To make it easier to understand the meaning of property stocks, let’s first check what investment is and what property is.
Investment is an effort to invest funds or capital into one or more types of assets within a certain period of time with the hope of obtaining income or increasing the value of the investment.
Property is a term that refers to the ownership of exclusive rights by individuals or business entities. Therefore, the notion of this investment is an effort to invest funds or capital into assets owned by individuals or business entities, with the aim of obtaining sales profits from the subsequent increase in investment value.
Property or real estate investment is closely related to assets in the form of land and buildings. According to the concept of financial planning, if the owner sells an asset in the future, then the asset can be declared as an investment asset.
However, if the owner uses it for housing or personal needs, even though the value will still go up (keep going up), it will also become a consumable asset.
Property Stocks 2022
Property owners are starting to heave a sigh of relief after the complicated period of the pandemic is getting looser and it is reported that Indonesia’s economy can continue to grow. This has made the trend of buying property again attractive to investors.
In terms of consumers or potential property buyers, the results of a survey by Bank Indonesia (12/05) found an increase of up to 22.7% of respondents wishing to buy property in the next 12 months.
Is the property sector in line with the economic revival?
Despite the Russia-Ukraine war, Indonesia’s economic fundamentals look good. The results of Bank Indonesia’s banking survey also recorded positive growth in lending in the second quarter of 2022. This was conveyed by the Marketing Director of Perum Perumnas, Tambok Setyawati, which can be seen as the growth in the property sector has been in line with the revival of the economy.
After the 2008 crisis, property stocks rose as energy stocks recovered. So it is estimated that in 2022 property shares will take the stage after commodity stocks reportedly rose.
However, it should be noted that interest rates affect property prices. The enthusiasm of the property sector can be disrupted if interest rates rise, because high interest rates can reduce the interest of potential buyers to own property and can make the property sector sluggish.
What are the Advantages of Investing in Property Stocks?
There are many profitable reasons to invest in property stocks. Let’s discover below some of the advantages of investing in property stocks.
1. Prices Continue to Rise
As mentioned above, the prices of various properties will continue to increase in the future. But why is that?
The answer, of course, is because the rate of population growth continues to increase. Thus, the demand for housing in the future will increase, and regarding the availability of properties may not be sufficient.
According to the laws of economics. When product availability is low and demand is high, the price must be high.
2. Can Be Used As Collateral
Like real property or other financial assets, property is an asset that can be used as collateral.
When the owner needs a loan to maintain the current availability of the asset, the property can be used as collateral. Owners do not need to sell the asset to get new funds, they can pledge certificates of ownership to get the funds they need.
3. The selling price of the property is in the hands of the owner
The property has a market price, but the selling price of the property is in the hands of the owner. If the owner wants to sell it quickly, then they can sell it at a lower price than the market price.
Therefore, you can say that property stock investment is not too complicated for novice investors. Besides being able to increase the value of assets, you can also adjust the selling price yourself.
4. Beneficial for the Welfare of Children and Grandchildren
Remember the first point in this section, future population growth and property availability will not always balance.
therefore the property stock investment that you make will be very valuable in the future so that it can help the next generation.
The property investment that you make now will be very meaningful in the future because of the large potential for future increases in value.
This also applies to share values, the value of property shares has the potential to increase many times in the next 5-10 years.
Even though the value of each building was depreciated or devalued, government regulations in this area were also relaxed. The government allows immediate property tax deductions over their lifetime so investors can still benefit.
the depreciation value of the property is also quite low when compared to other types of investment. Therefore you should start putting your funds into property investment as soon as possible.
Types of Property Investment
Investment can be the key to improving financial management for anyone to achieve the expected financial goals. There are many types of investment that you can choose from, including the property sector which is related to housing which is the primary need of society.
There are many types of properties that you can consider getting started. Here are the types of property investments for you to consider:
Boarding House Property Investment
This type of property investment attracts the most attention from capital owners. Potential profits from monthly rental fees can be obtained from tenants, which can be dozens to dozens.
With good management and governance, a boarding house business can be looked at quickly by prospective tenants, of course, prioritizing strategic locations. With boarding houses in strategic locations and good management, you can offer rooms at competitively profitable prices.
Apartment Property Investment
You have the opportunity to get multiple benefits with apartment investment. First, benefit from monthly rental fees and then the value of the apartment property is increasing every year. The value of the increase in the selling price of the apartment in the future will certainly be more expensive than when it was purchased first.
If you are a beginner in this type of property investment then land can be a profitable option. Buying land in a location that is rumored to be developed is a potential advantage for your financial future. In general, land prices increase every year due to limited land.
In the following discussion, we will introduce you to the types of attractive property investments that you can choose from. These are 3 of them:
Land investment is a type of property investment that is suitable for beginners, because there is no need to carry out complicated management after buying land.
To be able to invest in land, you only need to understand which land locations will experience rapid price increases. In this way, you won’t have to wait long to immediately benefit from your investment.
Based on our experience, here are tips on choosing land with rapidly rising prices:
The location of the land is on the side of the main road, or at least one public road can reach the land location. Just look at the development plan where the land is located, if it turns out that both the government and the private sector have formulated a very large development plan, then land prices will rise rapidly.
The location of the land is free from flooding, or a location where there is a small possibility of a disaster. This is a very important consideration, because in disaster-prone areas, price increases will be slow.
Our rapid population growth has led to a need for housing where it is most needed. This can be seen clearly from the difficulty in finding house rental prices in several areas in Indonesia.
Thus, housing investment is one of the recommended property investments. By investing in this type of property, you will immediately get 2 types of income:
The first is to benefit from renting out a house
The second reason is the advantage of rising house prices, because house prices go up every year.
if you are still unsure because you are considering the large costs, you can start buying property with crowdfunding so you can own shares in various potential properties around you.
3. Boarding properties
If you have sufficient funds or a large enough housing investment, you can choose a boarding house. Your income from investing in property stocks is definitely greater than investing in land or renting a house, because:
First of all, because there are so many boarding houses for rent, your monthly income will definitely be much higher. Second, the increase in boarding prices must be far greater than the price of ordinary houses.
In fact, you can choose from many types of property stock investments, and now by registering on a trusted online property investment platform with a crowdfunding system, you can start all of these investments with very little capital.
Property Stocks during a Pandemic
Even though it was down at the start of the pandemic, now the property industry is slowly starting to revive as the post-pandemic economic recovery is getting better in Indonesia.
Therefore, you can start investing again in this sector because various property businesses can run optimally again. As we know, property is a product whose demand is always increasing, so it has great potential
How to Invest in Property Stocks
Now, after understanding the advantages of investing in property stocks, maybe many of us are increasingly interested in starting to invest in this field. But how?
There are many ways to invest in property stocks. You can start doing the following:
Rental Property Investment
Of course, the most common way is to build or buy property privately. However, if you are limited in terms of ownership costs and various administrations, you can start with property crowdfunding provided by Ultracialis.
You can be a part of a rental business for regular passive income without spending a lot of time and effort. Especially if you have your own activities but still want to earn additional income, then this business can definitely be your choice.
Property Flip Business
Flip property business refers to the process and methods of owning a house or other property. This process involves repairing a property and reselling it in a short period of time, and making a profitable difference in price. The people involved in the real estate business are called flippers, and the selling process itself is called a flipper.
This business in Indonesia is not very popular, but that does not mean that this business model cannot provide benefits for you. Anyone can do this property investment, be it the public or real estate sellers.
The reason for selling the property at a lower price may be that the seller needs to make money fast or the condition is not good. but this could be an opportunity for you to take advantage.