Apartments are currently a popular option for many residents in the capital. The explanation for this is that the apartment has a number of benefits.
Residential apartments are typically situated in strategic locations, have ample road and transportation connections, and are outfitted with a variety of amenities to pamper their occupants.
Apartment investment options are becoming more appealing as the public’s interest in living in apartments grows. Many people purchase apartment units with the intention of renting or reselling them in the future.
Naturally, the expectation is that income will be realized as a result of the rise in property value.
Apartment and land investment is widely regarded as a promising investment vehicle. Property investment, in comparison to bonds, deposits, and mutual funds, has a low risk.
This is due to the fact that property prices appear to increase over time, and the opportunity for a high Return on Investment is still present (ROI).
Even though it has promising prospects, there are still risks that could transform your apartment investment into a fortunate one rather than a successful one. As a result, when beginning an apartment investment, careful planning is needed.
Are you considering purchasing an apartment? Take a look at some of these apartment investment ideas!
1. Pursue Market Segmentation as a Goal
Prior to purchasing an apartment as an investment, you must carefully consider who may be interested in renting your unit. You will decide the position of the right apartment for investment by targeting the right market segmentation.
In addition, market segmentation is critical for determining the financial potential of prospective tenants / buyers. This is helpful in deciding the price of your apartment unit for sale or rental.
Allowing your apartment’s rental/sale price to be much higher than the economic potential of your target market segmentation would cause your apartment unit to fail to sell.
2. Choose Your Location Wisely
Furthermore, it is critical to begin an apartment investment by carefully selecting the location of the apartment for investment. A good apartment location can result in high capitalization rates.
An apartment in the Sunrise Area is a good investment opportunity. The term “Sunrise Area” refers to a growing and in-demand neighborhood.
The location of the sunrise area is usually marked by an area with complete public facilities surrounding it.
Furthermore, the Sunrise Area’s location can be seen in the increase in land value, which is higher than the average market value of land.
3. Investigate Apartment Developers
The third thing to consider when looking to buy an apartment for investment purposes is the performance of the apartment developer you are interested in.
You must be astute in determining the developer’s track record, as well as whether the developer is credible and accountable for the development of his projects.
4. Examine the Apartment’s Land Status
You must also consider the status of the land on which your desired apartment is built. It should be noted that there are typically two types of land status for which apartments are built, namely developer property and BOT property (Build, Operate, Transfer).
Apartments with good investment potential are those that stand on land with developer property status.
Apartments on BOT status land are a high-risk investment. The reason for this is that BOT land is government-owned land that has been given to private developers for the purpose of building apartments.
In this case, the government grants the developer a set amount of time to use the land.
When the use period is over, the land and buildings must be returned to the government. As a result, you must relinquish ownership of your unit to the government, and you may receive compensation that is significantly less than the true value of your property.
5. Examine the apartment’s amenities and surroundings.
When selecting an apartment for investment, consider the amenities provided by the apartment to support the lives of its residents. The completeness of facilities has a significant impact on the interest of prospective tenants / buyers of apartment units.
Sports facilities (swimming pool, gym, and jogging track), internet connection, shopping center, and electricity and water connections are all things that prospective tenants and buyers look for.
Furthermore, good road access and transportation have a significant impact on the investment value of your apartment.
6. Be aware of the rise in apartment prices.
When purchasing an apartment unit for investment purposes, you must be aware of the increase in apartment prices from the time the apartment was first advertised until the time you purchase an apartment unit.
You can calculate the ROI range for your apartment unit by knowing the price increase.
7. Be aware of the Maintenance Fee
Knowing the maintenance costs charged to apartment residents is something that is frequently overlooked, but it is critical to be aware of when purchasing an apartment unit for investment purposes.
You must understand how much the apartment manager charges for maintenance, what is included in the maintenance costs, and the trend of rising maintenance costs.
Knowing about maintenance costs is necessary to avoid the manager’s arbitrary increases in maintenance costs.
Of course, this incident must be avoided because it can reduce the investment value of your apartment unit due to negative reviews from previous residents.
8. Collaboration with Real Estate Agents
Apart from careful planning, marketing activities are critical in apartment investment. To make unit marketing easier, you can collaborate with real estate agents so that your unit is advertised to property agents and potential tenants / buyers.
These are the eight tips you can use to get ready for your apartment investment activities. Of course, with careful planning, your apartment investment activities will go more smoothly and yield the desired results.
Are you prepared to enter the world of apartment investing? If so, it’s time to put your apartment on the market.