By: ocean ulum
Excerpted from the ocean-mylove.blogspot.com

Investment in property is still a major choice most people, because people
assume that it is one of the best ways to grow your money.
Property investments is generally considered more secure than the type of investment
another. Why your own control or manage the investment, so you
can control almost everything. But it is not the only advantage
investing in property, because the most interesting fact of invesatsi
on this property allows you to use other people's money to begin
invest.

Most other investment products is much influenced by external factors. Eg
prices in the stock market can go up and down rapidly because even significant
issues or gossip about politics, government policy, national security, the conditions
economic, or like bond prices fell as inflation and interest rates
interest rate rises. Compared property was also affected although external factors,
but the changes are not too fast, for example, house prices would not be
changed once a day but only in the annual need.

Benefits of Property Investment
By investing into the property, you have the opportunity to get
results of a large investment return. If you see Donald Trump pengusuha
property of the United States or Ir. Ciputra from Indonesia, their wealth, of
business property. Bank also has a property, if we look at office building
center of a magnificent high-rise, not to mention dozens of branch offices

There are many ways to invest into the property. You can start by buying
residential houses, shophouses, built a house rental, other commercial buildings or
vacant. Of all these options, buying and selling a rental house more
well chosen for those just starting to invest in property, then
a little bit of the rent savings to be invested back .. If you
noticed a lot of people are drawn to make rental housing, because the
the landlord lets you have a property that you can control
own, then sell it later. The good news is you do not need the money
much to start your investment in property.

It's important to understand why the property is often the primary choice of
to develop the property, why not because the property is not
risk. Like any other investment in the property also has constraints such as
the tenants are late paying rent, moved without telling, building
damaged, whatever difficulties may occur. The point is if you are willing to bother
with this kind of business, investment in the property is for you.

Using Other People's Money "Other People's Money"
One of the most interesting thing from an investment in property is that
system is made so that allows you to use
other people's money to finance your investment. This is one concept
The most important membuata rproperty make you be more affluent
compared to other investments.

On the other investment types is the large amount of investment is determined
of how much you are willing and able to pay with cash. Be
to purchase other investments you pay cash balls with the assumption
use your own money. We take the example of investment in the market
capital. To buy shares then you have to pay in cash all of the
kesuluruhan transaction, unless you do the actual trading margin
very risky. So is investing in bonds, mutual funds, deposits and
savings in the bank, gold and items bahka valuable collection of art, all
require cash payments entirely.

Investment in property is not the case, you can just pay for a down payment
house by 10% to 30% of the price of homes in order to
have the goods then the rest can be financed from the loan to the bank.
Never mind the banks, even developernya sendiripun would provide relief
installment payments for an advance payment of the purchase of goods.

Opportunity to use other people's money materialized in the form of financing
This is called the leverage, or ability to multiply
something. For example, the first day you managed to get a home loan with
advance payments amounting to Rp 30 million, then the same Day of your cash assets
immediately increased to Rp 100 million. By using the funding
Investment houses can be doubled in two ways. First, more and more
money invested the more other people's money or financing
you can get, for example, with money USD 30 million, then you can only
purchase shares up to Rp 30 million. But with the same amount of money if
invested in property, then you can buy a house for USD 100
million. Where you put a deposit on a house sebasar USD 30 million, then the bank
finance the remaining Rp 70 million, then you become the owner of a
buildings for Rp 100 million. Does not this amount is more than 3 time or
300% double? Unbelievable.

Why Real Estate Benefits
Using other people's money or use the financing is one of
Just the ease of which can be used to invest into the property dakam. But
other than that there are many benefits of investment in property that makes it very
attract other investment compared.

Cash Flows, "Cash Flow",
Cash flow is the money you receive on a regular basis for the money you invest
in an investment. such as interest earned on savings and deposits are cash flow
because it provides income to you. In property, the rent can be
income or cash flow for you. The more buildings you can
rent the greater your cash flow.

The value of your ownership of the house increases.
Value your ownership or rights to property investment financed from
the concept of using other people's money was going to increase, far exceeding the debt
or your obligations. Rights of ownership in an investment person is known
with the term equity. For example if you purchase property for investment
USD 100 million, financed by the bank's USD 70 million, the remainder of USD 30 million using
your own money. So your ownership rights to the investment value of Rp 100
million this is Rp 30 million or 30% of them. Ownership will increase
value because of debt repayments reduce liabilities.
In addition your property rights are also increasing because of rising property values.
Your property value will increase due to inflation, which makes the price of goods and
increased services, including property. As a result of this inflation is not just the value
property is up but you also have the opportunity to increase the flow
cash or your regular income by way of rent increase in line
with inflation earlier. The increase in the value of this property can even increase the power
You borrow. Banks usually be happy to provide additional loans
based on the price increase agunannya or property. You can use the money
is to pay off old debt balance, and the rest of the money from the loan
get in your pocket. Then for a new loan installment adjust
with the rent income.

The opportunity to build a bigger building again, after you successfully
pay off debts, you will have more money to be allocated,
for example, to make the existing property to be even greater. Many
property investment starts from a small building, but because there
income from rent can mencover monthly loan repayment, then make
property into larger building became very possible.

Is it hard to Get Loans For Investment Property?
The most difficult part of any business is to get the money to finance
business. People are still very difficult even to borrow business loan
from the bank to start a business. Banks usually only want to give loans only
the business has been running 2 years. This does not apply when you want
to the bank to borrow money to buy a house. No matter whether you just bought
home for the first time or for the umpteenth time, home loans could
given by the bank for the purchase of any home. Addition of
side of the home loan banks are also considered a type of credit risk is the most
low.

For home loan mortgage amount adjusted to your income, with
demkian banks have assumed that the debtor has a steady income
which can be used to pay the monthly installments. Then in terms of
jaminanya the building itself, which we know continues to increase
price, so do not be surprised if the guarantee is generally able to cover their debts.

Step - Step Started Investing In Property
Although there is a chance to use loans to finance property investments
You, that does not mean you become complacent. Investment in fixed property requires
commitment to the use of money and time. So do the research and establish a plan
before investing in property is very important. Since the earliest steps
The most important and so you decide to invest into the property is
learn everything about the property as much as you can.

Continue to learn, there are many sources of information can you be to learn
about property investment for example from the book - books, courses, seminars, also
Internet and others. To learn more about your property business can also take
working part time as a property broker. The advantage, besides you can
practice what you learned from the various sources of information, you
can also get sales commissions from selling your property. Not to mention
opportunity to build a network or networks which are useful
useful to help your property business later. Prior research
first will make you "aware" of the risks or problems that
may arise regarding the ownership of such property may occur
problems with the tenants, the costs of building maintenance.

Work with the home seller's agent or property broker, after you
equip yourself with sufficient information about the property business
then look for a home seller's agent or property broker
willing to help you understand more about the property business. Find agents
sellers who had experienced at least 2 years, they usually have far
more control of business property. You should look for a house dealer
working fulltime than partime, dikhatirkan because they can not meet

Research on interest rates, rising property prices, rents, if you want
using financing from the bank interest rates compare bank credit
each other and find the most competitive. Then also the
assumption of an increase in property prices so that you can determine approximately how
selling price someday. Do not forget if you want to get
pemdapatan from ruamh rent, so before determining rents seek information
the price reasonable rent for the area adjusted
with the condition of the building.

Your Action Plan
Once you have determined to invest in property, then the next
You can just set a goal of your property investments specifically and
measured. Suppose you want to earn money USD 100 million that you plant
e property investment or property purchase could be USD 1 M in 10
year. Once you set a goal then you can determine the type of
what is the appropriate property to achieve those goals, whether housing,
commercial buildings .. Calculate how much amount of money needed to
nvestasi is, property market conditions, then the amount of rent that
you can expect, as well as how many buildings you can buy. With
doing research as suggested above, then you can estimate how
much money should you provide and how much investment could result
expected to continue to grow. You can even predict how long
property must hold before you sell it. By making goal
finances will give you a kind of guide to start your new business,
take actions necessary, to anticipate risks, and
make the investment.

Happy investing!