Apartment Investment Advantages and Disadvantages
Congestion and modern lifestyle has left the apartment sales increasing. Generally, people buy apartments in order to stay close to physical activities, such as an office or campus.
Here are the advantages and disadvantages of investment apartments quoted from the book "Getting Rich Through Property" Simanungkalit Panangian posts:
ExcessFirst, the request (demand) is high, especially in the business area, expatriate residential areas, and campus environments. Residential areas such as expats in Jakarta Kemang.
Second, the medium-term lease (2-3 years). Apartments or condominiums are usually hired to bring tenants to the location of activity, especially office locations. Thus, the lease term average of about 2-3 years.
Third, the risk of low vacancy. That is, if the location is convenient as a place to live, usually tenants will continue to occupy the apartment. On the other hand, the prospective tenant was coming looking for vacant units for rent. One factor is the low apartment vacancy risk from people unfamiliar with the culture we live in vertical housing.
Fourth, capital high rate (7-10 per cent). At the risk of low vacuum unit, then the revenue comes from rental units also automatically become fluent. This of course makes Cap Rate, higher than the rent or home stores and home offices.
ShortageFirst, the owner must be careful to choose the location of the prospective apartment or condo. Lately, a lot of developers who build apartments away from the city center or centers of activity. Regions such as these generally do not deserve to be the location of the apartment, and certainly not as a prospective investment.
Second, the owner must choose a good building management. Many of the apartments in the CBD were deserted prospective tenants because the building management is managed poorly.
Good building management always consider factors occupant comfort. They also noticed improvements of public facilities, such as swimming pool, elevator, and others.
Here are the advantages and disadvantages of investment apartments quoted from the book "Getting Rich Through Property" Simanungkalit Panangian posts:
ExcessFirst, the request (demand) is high, especially in the business area, expatriate residential areas, and campus environments. Residential areas such as expats in Jakarta Kemang.
Second, the medium-term lease (2-3 years). Apartments or condominiums are usually hired to bring tenants to the location of activity, especially office locations. Thus, the lease term average of about 2-3 years.
Third, the risk of low vacancy. That is, if the location is convenient as a place to live, usually tenants will continue to occupy the apartment. On the other hand, the prospective tenant was coming looking for vacant units for rent. One factor is the low apartment vacancy risk from people unfamiliar with the culture we live in vertical housing.
Fourth, capital high rate (7-10 per cent). At the risk of low vacuum unit, then the revenue comes from rental units also automatically become fluent. This of course makes Cap Rate, higher than the rent or home stores and home offices.
ShortageFirst, the owner must be careful to choose the location of the prospective apartment or condo. Lately, a lot of developers who build apartments away from the city center or centers of activity. Regions such as these generally do not deserve to be the location of the apartment, and certainly not as a prospective investment.
Second, the owner must choose a good building management. Many of the apartments in the CBD were deserted prospective tenants because the building management is managed poorly.
Good building management always consider factors occupant comfort. They also noticed improvements of public facilities, such as swimming pool, elevator, and others.
