Investment Property in Malang

Investment Real Estate in Malang

Investment Property in Malang
Investment Property in Malang

Malang 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 Malang.

Search Map of Malang Investment Real Estate

Malang (; Javanese: ꦏꦸꦛꦩꦭꦁ, romanized: Kutha Malang) is a landlocked city in the Indonesian province of East Java. It has a history dating back to the age of Singhasari Kingdom. It is the second most populous city in the province, with a population of 820,043 at the 2010 Census and 843,810 at the 2020 Census. Its surrounding (the metropolitan area) is home to 3,663,691 inhabitants in 2010, spread across two cities and 22 districts (21 in Malang Regency and one in Pasuruan Regency). Malang is the third largest city by economy in East Java, after Surabaya and Kediri, with an estimated 2016 GDP at Rp. 44.30 trillion.

The city is well known for its mild climate. During Dutch colonization, it was a popular destination for European residents. Even now, Malang still holds its position as a popular destination for international tourists. Malang keeps various historical relics. This city keeps relics of the Kingdom of Kanjuruhan period until the Dutch period. The existence of Dutch heritage in general is in the form of ancient buildings such as the Kayutangan church and Ijen cathedral which has gothic architecture. Malang also holds various events to preserve its cultural heritage, one of them is Malang Tempo Doeloe Festival. There’s also a lot of historical heritage which has become a landmark like Tugu Malang (Alun-alun Bundar). This city is also well known because of its label as an educational city. It has one of the best universities in Indonesia such as Brawijaya University and Malang State University.

Malang has various ethnic groups and cultures from all over Indonesia and the world. The population of Malang reaches 895,387 people with a majority of Javanese, followed by the Madurese, and Chinese or Peranakan. Malang extended urban area or notable known as Malang Raya, is the second largest in East Java after Gerbangkertosusila (Surabaya Metropolitan Area). From Javanese culture point of view, the majority of Malang people belongs to Arekan Javanese culture.

Malang was spared many of the effects of the Asian financial crisis and since that time it has been marked by steady economic and population growth.

Get Our Latest List of Investment Property in Malang

The financial stability of Malang 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 Malang

 

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

 

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

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Malang and be prepared to change your initial outlook.
  • Thoroughly research the Malang location with a special emphasis on fringe areas outside the main Malang metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Malang.
  • Ensure that your target investment property in Malang 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 Malang

Flipping property in Malang

 

Flipping property is when we advise clients to buy a Malang 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 Malang market has a time to react to the renovation.

 

The Flipping Strategy in Malang

 

Investment property flipping in Malang 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 Malang real estate investments are sometimes referred to by professionals as ‘distressed’ Malang real estate.

 

What is distressed Malang property:

 

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

 

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

 

Calculate profit that you make from Malang investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Malang 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 Malang use a minimum profit value of 22% when looking at potential Malang projects. The reason for this is because there are lots that can go wrong in Malang 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 Malang 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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