successful property investment

YOUR INFO AND TIPS: Many people think property is one of the best investment choice. In fact, when the economic tide, property remains a profitable investment.

Trouble is, investors sometimes get stuck in an investment property. They can be wrong due to still use the emotion when selecting and determining the property as an investment.

"About 85 percent of people buying property because of emotion," he said at the Smart Investment Seminar in Financial Crisis in Marketing Gallery Rasuna Kuningan Jakarta Epicentrum.

So, how to choose the investment properties that provide maximum results?

According to him, there are five important elements for potential investors to select and define property investment.

First, prospective investors should be keen to see a good time to buy property. The principle is to buy when prices are low and sell when prices are high.

Now, according to Panangian, is the Buyer's time or the buyer is above. In such circumstances, the price will be depressed in absolute terms even though in nominal terms does not go down. "If the price of Rp 1 billion last year and this year the same, meaning in real terms the price down. It's time to buy," he said.

He estimates the property will re-boom cycle in three-four years into the future or about 2012.

Second, prospective investors should choose a prime location. The term property by location, location and location according to very precise use. The location downtown is a prospective area with guaranteed increases continuously or location with prices likely will continue to rise with the development.

Strategic locations and are usually located in the triangle prospective business offices, business and economic growth. In Jakarta, the exact location for an investment property, including the area Central Business District (CBD), Kemang, Pondok Indah, and Brass.

Third, prospective investors should consider the source of financing. Here, investors have to be creative whether to choose cash, credit or cash gradually to finance investment. "It depends on the ability of investors and the state," he said.

Fourth, prospective investors must be careful about what kind of a prospective investment. Type property in the form of offices, condos and retail are still prospective as a land investment.

The return of the capitalization of the three types of property are guaranteed a faster rate. Return rate apartments and condominiums topped with returns ranging from 8-12 percent. Office rental rate of return 70-10 percent and retailers such as kiosks and shops at 5-9 percent.

Fifth and no less important to choose a developer who has a reputation in the business. For potential investors it is important to see the developers to be invested could produce. Timeliness, quality and accuracy according to the contract must be a primary consideration.

In conditions where the buyer is king, Panangian suggest the developer to get closer to consumers. The trick with investors include overseeing the construction and quality with a precise delivery time.