Bandung is one of the most popular destinations in Indonesia due to its cooler climate, plantations, fashion stores and the striking natural wonders, such as the Tangkuban Prahu volcano. Combined, this creates a prime tourism destination for both local and international tourists. But that also means there are plenty of real estate investment opportunities in the region.
How can I invest in Bandung
The Jakarta Post states that one of the best places to invest in real estate in Bandung is near the plantations of the city. The reason behind this is quite simple: they possess a lush natural beauty that is simply astounding to look at. This makes buying a home and turning it into a potential bed and breakfast an ideal investment since people could stay at your place then eventually look around the various plantations afterwards. This ensures that you can take full advantage of the lush natural wonders of the area as a way of drawing people in to your business.
Other avenues of approach
Another avenue of approach that you can take into consideration is by approaching each house in the area as a potential real estate investment. For instance, you can buy a house now and sell the house in Bandung through online listings like Rumah at a later date when the prices go up. The reason this is an effective method is that due to the nature of the area as a tourist destination, the price of the land or homes is likely to go up exponentially, thereby resulting in a great investment opportunity by buying now and selling later.
Another way in which you can take advantage of the tourism industry in Bandung is to buy homes cheaply, refurbish them to look nice then rent them out to foreign visitors or tourists later on. This method is actually becoming quite popular with many local residents due to the number of old homes in the area that are ideal for being refurbished. Due to their age, they are actually quite cheap and can be readily found in various areas of the city.
Tearing Down Old Homes for New Ones
Another new trend that has been developing in Bandung has been old homes being demolished and being replaced with new properties. The basis behind this trend is actually quite simple, Researchandmarkets.com stated that old homes that are nearly decrepit are examined and the lot is appraised for its viability. If proven to be valuable, the property is bought but the old home is demolished. Several old homes are simply not as space efficient as a low rise multi-story building that can hold more people. Small time real estate investors simply buy old homes and their lots and put up brand new multi-room apartments in their place. This maximizes the use of the area and allows the investors to recoup their loses more easily. While this may seem to be a considerable level of investment that is out of the reach of ordinary individuals, it is actually quite plausible when taking into consideration the fact that you can develop a cooperative agreement with other potential investors and all of you can develop the land together.
Things to Take into Consideration
The inherent problem with any real estate development plan that aims to expand into the local Bandung area is that it has to deal with the environmental needs of the local council which is one of the primary reasons behind problems with real estate development within the area. While it may be true that governments have the responsibility in ensuring the continued safety and health of their populace, the fact remains that in case of the ever increasing property demands in the area, it is apparent that the needs of the many outweigh the needs of the few and in this case the apparent effect of growth and development within the local area takes precedence over preserving some areas. However, this is not the case wherein the local council has actually implemented stringent controls on the type of properties that can be developed in certain areas. As such, before you buy any form of property in Bandung, Quora.com states that you need to perform sufficient research in order to determine whether the property can be developed in the way that you choose. Otherwise, you may wind up purchasing a property that you cannot develop adequately and winds up as nothing more than a waste of resources that you cannot get back.
Before proceeding with a real estate investment, it is necessary to first think about how you would go about doing so in an area that has consideration levels of protection against over development. You need to plan carefully and use appropriate common sense in how you approach your investment.