Table of Contents
1. Determine the purpose of buying land
2. Set Your Budget Healthily and Realistically
3. Choose a location with the prospect of price increases
4. Choose a Trusted Developer
5. Simulate Financial Conditions Before Buying
6. Must check legality and urban planning plans
7. Maintain Liquidity
Jakarta, hitclubapk3 Indonesia
—
Land
could be an attractive investment alternative that the younger generation can look at.
Apart from potentially providing
capital gains
large, the land also does not require maintenance costs like ready-to-move-in properties.
However, this decision still requires a strategy so that you don’t make a wrong move.
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The following are land investment tips from financial planners that can be a guide for Gen-Z before entering the property market:
1. Determine the purpose of buying land
Advisors Alliance Group Indonesia Financial Planner Dandy emphasized that the main foundation before buying land is to understand the purpose.
“Is it for sale again?
capital gains,
used as business land, or for residence.”This will affect the future,” he said
hitclubapk3Indonesia.com.
2. Set Your Budget Healthily and Realistically
Dandy suggests a disciplined allocation of funds so as not to force financial conditions.The amount is no more than 30 percent of income so as not to interfere with emergency funds.
“Usually from
budgeting
Always set aside 10 percent-20 percent for savings or investment for land down payment.”Then the installments should not be greater than 30 percent of monthly income,” he explained.
He also added the importance of preparing emergency funds to anticipate conditions when income is disrupted.
3. Choose a location with the prospect of price increases
Dandy suggests having a location with promising regional growth potential.For example, public transportation facilities will be built.
“Look for a place that has future prospects, for example the land is close to a public transportation route, in the next few years it will be close to an MRT station that will be built, usually prices will rise in the next few years,” explained Dandy.
4. Choose a Trusted Developer
According to Dandy, if you buy land through a developer, you need to ensure that their track record is truly trustworthy.
“If there is land
developers
make sure
developer track record
good and responsible, this will add selling value,” he said.
5. Simulate Financial Conditions Before Buying
OneShildt Consulting Financial Planner Budi Rahardjo reminded that purchasing land, especially for residence, should not make finances unbalanced.
“Don’t force yourself to buy a house, but sacrifice your finances. Simulate your financial condition before and after buying, especially if you will add fixed installments,” he explained.
Apart from that, Budi also asked prospective buyers to find as much information as possible and determine the criteria for a residence to get optimal results.
“Simulate the financial conditions before and after buying a property, especially if after the purchase creates fixed expenses such as installments,” said Budi.
6. Must check legality and urban planning plans
Budi said, if you plan to buy land as an investment, it is very important to pay attention to growth opportunities in the surrounding area in the future.Apart from that, you also need to look at the legality.
“Check the legality of the land, make sure the land has a clear certificate and is not in dispute,” he stressed.
7. Maintain Liquidity
According to Budi, land investment requires a long-term horizon and large capital, so it should not erode daily finances.
“However, a regular figure of 10 percent-20 percent of monthly income can be a common figure if we are interested in investing in land. Capital to buy land does not have to be
full
from your own funds, but you can also take out a loan through the bank.”Make sure that the land can be used for the desired purposes,” concluded Budi.
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