05 November 2012

Buying Investment Property

Now it's time to Buy Investment Property? This year, the property sector is expected to continue this positive trend. With low interest rates, investment property will be very profitable. The property sector in the past year showed positive growth. Based on the trend of ongoing, positive growth is expected to continue.

Is the driving factor of economic growth, rising purchasing power, and low interest rates. On the other hand, factors that poor urban infrastructure and congestion is getting worse also makes vertical housing in the city-which is close to where the move-increasingly in demand. These factors are going to be a contributing factor at this year's growth.

Indeed, there are fears the economy will slow pace of the economic crisis in Europe. But this time it is not a barrier to have a significant impact, only a rumor only. In contrast to the economic conditions in Singapore and Hong Kong are directly related to Europe, it will be affected big.

Europe and the U.S. The company is currently looking for an alternative location for investment when economic growth in Europe slowed. The reason is none other than to cover the losses of the slow growth in the region. The goal was none other than Asia, including Indonesia. Because, as the worst crisis occurred in 2008, the U.S. economy is not too affected. With the current economic conditions are not as bad as 2008, hopefully no crisis here anymore.



The problem of inflation, on the other hand, need to be taken into account. The government's plan to remove fuel subsidy and premium restrictions, can affect economic growth. But this is merely the potential alone.

Offices Still Be Primadona
The office sector has shown excellent growth in the last year. CBD office occupancy rate in the United States last year reached 90%. It is estimated this year will increase to 95%. This would make the market attractive for office owner, due to high occupancy, rents can be raised easily.

For the office, a total of 430,000 m2 of office space absorbed in the CBD in 2011. If this year could be more than a year ago, would be great. So we do not expect absorption of years ago, probably around 30,000 m2. Price of grade A office space rents rose 35% in 2011, he continued, while the year is expected to rise by 25%.

Office prospects remain good for up to two years. The reason, the current supply of office space is slight, while demand continues to grow. Office market will slow down in 2014, because at that time new supplies began to appear, so the market would cool down.

In the residential sector, growth still looks positive. Sales of condominiums in 2011 is not too high, despite considerable growth. Condominium sales in 2011 increased 50% compared to 2010, while this year's growth is expected to rise 10% -20%.

Greater purchasing power and consumption levels began to rise, making the retail sector grow. Just look everywhere now crowded mall. If there are sales, modern shopping center definitely full. It was a sign that the purchasing power better.

Prospective location for property still exists in the city, such as the CBD. Fears of an impending crisis, on the other hand, benefit consumers. Because the developer will feel anxious and can not raise prices arbitrarily. If economic conditions there is no threat of a crisis, they can play the price arbitrarily. So for the consumer's favorable conditions.

So look at these conditions, now is a good time to buy property. People who have money, in conditions of low interest rates will be looking for an alternative investment. The most profitable investment property. The advantage could be better than playing the stock or wait for interest on deposits. In 2013 property prices are expected to rise again, but if you bought the property next year, the level of its capital gain would not be as big as when buying property this year.

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