PROPERTY REVIEW: FROM BALI TO BANDUNG

Dec.31, 2008 in Property Review

It’s been almost ten days I haven’t written again. Yes in Christmas I and my wife take holiday in Bandung, her childhood city, at her parents’ house. By the way “I wish you all Merry Christmas 2008 and Happy New Year 2009. At the last day of 2008 I am inspired to write things I see and learn when I’m back again here in Bandung, my last campus- ITB- city.

Great things grow in this city after 14 years when I was at first year of my architecture class. What I like most of Bandung is its architecture, THE ART DECO STYLE. And it is used in almost every building and property built here. Of course some is mixed with modern and post-modern style.

Different from Bali with its Bali modern style, in Bandung the modern style is free from any regulation of building height and vernacular style. Bandung with high population society from vary economy level boosted with many property built. Say it from mega mall, restaurants, five star hotels at downtown; even unique culinary places and factory outlets are diverse in every corner of Bandung. I like this city, not only because it is called as ‘Paris van Java’ but also the growth of property development with creative style and facade. If we review the property at both city then just take as sample the City Walk at Cihampelas, well-known street of fashion market, especially jeans and T-shirt. In City Walk there are many tenants and shops, blended with the green garden and outdoor food court, café and restaurants and the stage at the center of Citywalk to accommodate events or any programs held in Citywalk. If we compare it with Istana Kuta Galleria in Kuta, Bali around Imam Bonjol street and Patih Jelantik street, at a glance almost the same. But the most comfort of City Walk is the ’limited area for car and motor bike’. It gives more comfort and human environment. Yes some area in Istana Kuta Galleria is prohibited from car and motor bike. But no play of ground contour as in City Walk, which gives more sense of feeling. At weekend The City Walk, flooded with visitor from Jakarta and any other places. Of course there are many chance of transaction, further more at food court and fashion shop. How much to rent one place with measurement 4×8 – 10 m? I have no info yet exactly. But it is around 5-10 million IDR per month. Who is the market? They are from middle to high level society. What about regular days? Still flooded with local visitor, further more right now it is only 2-3 hours from Jakarta through by pass road. Bandung city with cool weather because it is positioned at hills and mountains becomes tourism destination. That’s why many hotels built; right now it is growing with apartments and town houses, especially built at Dago, Ciumbuleuit- the coolest and higher place- where you could see the beautiful Bandung at night.

I am surprised with Bandung city growth. See at the end of this year, where many tourism places hold OLD AND NEW PARTY, visitors come from everywhere. They come most from Jakarta, Cirebon, Solo, Jogjakarta and others with their own cars. Could you imagine how rapid the traffic is? That’s why I use motor bike to walk around Bandung, Lembang, Gunung Tangkuban Perahu. You will not get stuck because motor bike is smaller and slimmer. It is just like fish, you could maneuver point to point. JJ

So what is this all about? There are still many chances to put your investment here in this city in Bandung especially THE PROPERTY INVESTMENT. Because of Bandung have rapid visitors who are ready to buy all Bandung’s products.

Property Investment Opportunity

I talked with my oldest brother in law a few days ago. He described how the opportunity to put investment in property without having to have big bucks but supported by big guy’s bucks. The description is like this:

Assume you have IDR 100 million in cash. Search for property-house type or town house type- cost IDR 50 million. Grab it and convert it to be rental rooms for students or single worker with cost IDR 200 thousand – 300 thousand per month. Assume the property has 4-5 rooms with monthly average 3 rooms worked. You get IDR 600 thousand – 900 thousand average monthly. OK, hold it. Search for another typical property with typical price. Work it as the same function. Where do you get the fund? Use another IDR 50 million. Absolutely Not. It’s for your emergency fund. Go to the bank and make your first property as bank guarantee. How to pay the bank mortgage? Your property rental payment is. In one year your property value arises to IDR 55 million. It’s growing 5 million per year. Even more depends on market trend. Then you do it intentionally, imagine you grab 50 typical properties in one year with bank mortgage support. Even if it doesn’t run well, you still get the price deviation when you sell the property. So with IDR 100 million in cash as support fund not for usage at all, you get sky rocket revenue.

The way of property investment above is still in low level of funds. You still could do it at higher level if your support parked fund added more. So it’s equal to the risk.

Metro TV News at few days ago presented news about what the prospect and safe investment in 2009 is. One of it is Property Investment for rental purpose, buy to let purpose. Again when the stock market still tries hard to arise, property investment could become as your future investment in 2009.