Before we discuss how to start a property business from scratch, it’s good to understand why property business is attractive and profitable.
Here are some reasons that might interest you in doing property business:
- Low Risk: Compared to other businesses, property business tends to be safer and more stable. Properties are assets that are not easily damaged, lost, or depreciated. In fact, properties usually increase in value over time, especially in strategic locations. Additionally, properties can be used as collateral to obtain loans from banks or other financial institutions if you need additional capital.
- Passive Income: Property business can generate passive income, which is income you earn without working hard every day. Examples include renting out houses, apartments, boarding houses, or shops. You just need to provide habitable properties, set appropriate rental prices, and find reliable tenants. After that, you can enjoy the rental income that enters your account every month without the hassle of managing your properties.
- Inflation Resistance: Properties are less affected by inflation, the continuous increase in the general price level of goods and services. Inflation can erode the value of your money over time. For example, a million Indonesian Rupiah this year may only be able to buy goods worth 800 thousand Rupiah next year. Properties, on the other hand, usually have a higher value than inflation. For instance, a house purchased for 100 million Rupiah this year might increase to 200 million Rupiah next year. With this, you can sell your property at a higher price than the purchase price or adjust rental prices according to market price increases.
Now that you know some advantages of property business, are you still hesitant to start? If yes, perhaps you are still confused about how to start a property business from scratch, especially if you don’t have enough capital.
Don’t worry, I will provide some ways that you can try, as long as you are willing to make an effort and learn.
Starting a Property Business from Scratch for Beginners
