Investment Property in Padang

Investment Real Estate in Padang

Investment Property in Padang
Investment Property in Padang

Padang 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 Padang.

Search Map of Padang Investment Real Estate

Padang (Indonesian pronunciation: [ˈpadaŋ]) is the capital and largest city of the Indonesian province of West Sumatra. With a Census population of 1,015,000 as of 2022, it is the 16th most populous city in Indonesia and the most populous city on the west coast of Sumatra. The Padang metropolitan area is the third most populous metropolitan area in Sumatra with a population of over 1.4 million. Padang is widely known for its Minangkabau culture, cuisine, and sunset beaches.

The city had historically been a trading center since the pre-colonial era, trading in pepper and gold. The Dutch made contact with the city in the mid 17th century, eventually constructing a fortress and taking over control of the city from the Pagaruyung Kingdom. Save for several interruptions of British rule, Padang remained part of the Dutch East Indies as one of its major cities until Indonesian independence. In 1906, Padang along with Palembang became the first populated places in Sumatra to achieve city status (gemeente).

Get Our Latest List of Investment Property in Padang

The financial stability of Padang 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 Padang

 

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

 

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

 

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

Flipping property in Padang

 

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

 

The Flipping Strategy in Padang

 

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

 

What is distressed Padang property:

 

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

 

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

 

Calculate profit that you make from Padang investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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