Property Investment Tips For Beginners

Property Investment's Dos and Don'ts - Ots Properties

In youth, many people compete to invest for their old age. One of the most popular investments lately is property investment. There are many kinds of property investment, it can be a vehicle or a house. The most popular property investment is in the form of housing because it is considered more profitable in the long term. The success of owning the first property is the most proud thing for novice investors. In order to achieve the intended success you need to set the right strategy to achieve the goal.

As a beginner, you should not take hasty steps because there are many things to learn before starting property investment. One of the things that must be considered before buying a property is that the property buying process is not easy. Sometimes there are many steps that must be passed. Pay attention to the payment system that you will choose, if you choose to make a payment with a mortgage, make sure all the requirements are complete before submitting. Here are 10 steps to start property investment for beginner from DDP Propertys.

Choosing the Right Location

Location is one of the things that must be determined in advance before you want to buy a house or start a property business. People usually decide to start building a house because of the strategic location. For this reason, location is the main factor that must be considered when starting property investment. The location also greatly affects the selling price of the property, the strategic location is easy to reach and close to the center of the crowd making a house have a high selling price.

Preparing Funds

In addition to determining the location, cost is also one of the factors that determine people to invest in property. You must prepare funds to cover the basic costs and other costs that become obligations. Sometimes the amount spent is not small and makes novice investors surprised. Here are some costs that must be prepared before starting to invest in property.

Sign up fee

The fee for the finished sign will be determined by the developer. However, if you buy property through the secondary market, the fee for the sign is determined by the seller of the property. The sign-up fee is a form of clarity when you buy a house or commonly known as a booking fee .

Down payment

After you pay the sign-up fee, the next obligation is to prepare a down payment. You are required to pay a down payment if you buy a house through the developer. Meanwhile, if you buy through the secondary market, the down payment is estimated at 20%-50% according to the provisions of the bank.


For beginners, property investment is usually done by way of credit or installments over the next few years by paying installments every month. The amount of the installments is determined by agreement between you and the bank, but the amount will not exceed the amount of your and your spouse’s income.

Choose a Trusted Developer

Before starting to invest in property, it is important for you to know the background of the developer of the property you want to buy. Don’t necessarily trust well-known developers. Make sure the performance is also good and can be trusted. Choose a developer who has at least 5 years of experience in the property sector. All information about the developer can usually be obtained through the related website.

Check Market Price

Don’t be in a hurry when you want to buy property. Many things should be reviewed before deciding to buy. One thing you should pay attention to is the current market price. You must know the market price of a house that you want to buy. Checking market prices can be done online or do direct research. That way you can get the best price for your property investment.

Adequate Facilities

After checking the market price, you also have to know what facilities are provided by the developer. Adequate facilities will also increase the selling price of the property. Pay attention to the availability of internal and external facilities. Internal facilities include places of worship, sports arenas, play areas and standard infrastructure such as residential gates. Meanwhile, external facilities are facilities around housing such as office centers, schools, hospitals and shopping centers. This is very important for those of you who are just starting to invest in property.

Mortgage Approval

Usually people will try to get a mortgage approval to ease the house payments. Mortgages are also things that make it easier for novice investors to invest in property. Having a mortgage approval makes a real estate agent or vendor confident about your interest in buying a home and investing in property. In addition, mortgages also prevent the failure of buying and selling houses between you and the housing agent.

Choose the Tenor That Suits Your Ability

When you apply for a mortgage, the bank will offer you various tenors. The tenors offered range from 5 to 10 years. The availability of the tenor will be calculated by the bank based on your ability. Do not force choosing a short tenor if you are not financially ready, keep in mind that property investment is a profitable long-term investment.

Land Purchase Letter

Another thing that must be considered when investing in property is to ensure that the land certificate issued by the developer is legally valid. As a novice investor, you must be observant in choosing a housing unit as an investment property. You can ask this through the notary who takes care of the land deed. These letters will determine the status of the plot of land that you own and the whole lot of housing.

Preparing Additional Funds

When making a property sale and purchase transaction, you have to prepare more funds because it is possible that there will be additional costs that must be borne in the process of buying property investment. Here are some additional costs that may appear in a property sale and purchase transaction.

Bank Fee

Buying a house using a mortgage means that you have to go through several stages of checking the completeness of the paid files. One of them is the cost of surveying property assets before buying a house. In general, checking land certificates and property selling prices are based on prevailing market prices.

Insurance fee

Insurance costs usually cover life insurance at 1% to 2% of the total loan. In addition, there will be fire insurance of 1% of the total loan.

Notary Fee

A notary is the party who will help you a lot in taking care of the deed and certificate of sale and purchase. Notary fees are your full responsibility. The amount of the notary fee is adjusted to the needs of the buyer.


Taxes are an unavoidable obligation in every property sale and purchase transaction. Tax fees will be incurred with a mortgage or cash payment. Taxes that arise in the sale and purchase of property, namely BPHTB (Bea for Acquisition of Rights on Land and Buildings)

Unit Handover Time

After you have completed all the steps to buy a house, then make sure the time for handing over the house or other property you buy. Do not let any delays that will harm you in the future. Do not let your main goal of property investment will actually be detrimental.