Investment Property in Baubau

Investment Real Estate in Baubau

Investment Property in Baubau
Investment Property in Baubau

Baubau property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Baubau.

Search Map of Baubau Investment Real Estate

Baubau is a city in Southeast Sulawesi province, Indonesia. The city is located on the southwest coast of Buton island. Baubau attained city status on 21 June 2001, based on Indonesian Law Number 13, for the year 2001. It covers an area of 294.98 km, including about 30 km2 of water area, and had a population of 136,991 at the 2010 Census and 159,248 at the 2020 Census; the official estimate as at mid 2021 was 161,354.

The port of Murhum serves the city’s sea transportation, with a ferry terminal operated by the Indonesian state-owned sealiner, Pelni.

Get Our Latest List of Investment Property in Baubau

The financial stability of Baubau has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Baubau

 

Renting out your Baubau buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Baubauare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Baubau and be prepared to change your initial outlook.
  • Thoroughly research the Baubau location with a special emphasis on fringe areas outside the main Baubau metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Baubau.
  • Ensure that your target investment property in Baubau appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Baubau

Flipping property in Baubau

 

Flipping property is when we advise clients to buy a Baubau property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Baubau market has a time to react to the renovation.

 

The Flipping Strategy in Baubau

 

Investment property flipping in Baubau is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Baubau real estate investments are sometimes referred to by professionals as ‘distressed’ Baubau real estate.

 

What is distressed Baubau property:

 

  • Baubau property in need of renovation
  • Baubau real estate with a change of puropose and use
  • Oversold Baubau property
  • Bank repossessions in Baubau

 

Put simply, long term investors in Baubau purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Baubau investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Baubau property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Baubau use a minimum profit value of 22% when looking at potential Baubau projects. The reason for this is because there are lots that can go wrong in Baubau property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Baubau and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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