Property online sites & investing opportunity in Tangerang

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Tangerang_property

As the sixth largest city in Indonesia, Tangerang holds a lot of potential for real estate investment for people looking to create an effective source of passive income. Since the city has yet to reach over saturation, there are still areas that are relatively close to the urban centers that have reasonable prices, and it is these areas in Tangerang, Banten Province, that you should aim for when it comes to investing in real estate. Before proceeding in any form of real estate investment, you need to examine what sort of property would be ideal for you.

Apartments

An article on Rksi.org explained that while Tangerang’s business district is not as extensive as Jakarta’s, its proximity to the capital has resulted in many multinational companies establishing themselves within the business district. This has created a growing market for properties within the area which makes buying an apartment a potentially lucrative proposition for a buyer.

The target demographic that most people who own apartments have when it comes to potential renters are either foreigners or individuals that are part of the middle or upper management of a company. Apartments that specially cater to this type of consumer normally cost IDR3.5 to 6.5 million depending on their location with small studio apartments being considerably cheaper at Rp1.2 million within the financial district. Cost versus space is the main issue when purchasing an apartment in Tangerang since for the price of a small apartment in the financial district you could buy a 2 story home with 4 bedrooms.

Shared Housing Rental

One new trend that the Institut Teknologi Sepuluh Nopember observed in housing rental in Tangerang comes in the form of shared housing rentals. The concept centers around a group of 5 or 6 people sharing a single home that has 3 or 4 bedrooms. These individuals occupy either a room each or two share a single room with some shared housing units having bunk beds installed.

This method of renting out a house allows real estate investors to purchase cheap houses in Tangerang through listing sites like Rumah and make a considerable profit in the next few years. The popularity of this method of housing is connected to the proximity of these houses to the local financial district as well as the lower amounts of rent that each individual person that stays at the house pays. This makes them an affordable choice for low income workers who work in the city.

Other potential avenues of rental income can come in the form of renting out individual rooms in your home on a daily basis through sites like Airbnb or Roomarama. These websites cater specifically to people that are looking for cheap and affordable places to stay while visiting Indonesia which makes a well placed home a potentially lucrative source for alternative income. All that would be needed is for you to select a house that has a relatively good proximity to areas frequently by the general public and determine whether it is in the range of your budget.

Dormitories

Another form of real estate investment that Indonesiaurbanstudies.blogspot.com noted has been gaining traction in Tangerang has been the purchase of various apartment units located near universities and converting them into dorm rooms. College students in Indonesia that still have considerable family ties results in many of them preferring to stay at home then commute to college.

However, there has been a growing number of students who prefer staying closer to their colleges, either due to their parent’s homes being located too far away in another province or simply due to the distances and costs involved in commuting. With the increase in the number of college students preferring to live in dorm rooms comes an increase in the amount of people that have started investing in several rooms in buildings near colleges and advertising them specifically to college students.

Average prices for dorm room sizes units located in colleges in Tangerang are around IDR2.2 to 3.3 million and can hold roughly 2 students for the smaller units or 4 in the larger units. Some unit owners even install bunk beds in order to increase the amount of people that can be placed in a single room. From an investment standpoint, a dorm room is an ideal investment platform since demand for rooms is unlikely to disappear so long as the college nearby exists. This ensures a steady stream of occupants resulting in an assured source of income over the lifespan of the unit.

In Conclusion

Overall, selecting the ideal type of property need not be an overly complicated process. You just need to figure out what sort of rental property would be ideal for you, the amount that you would be willing to pay for it and how much profit you want to make off the unit. Just remember, if a deal seems too good to be true, it usually is. [Image source]

 

 

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