Investment Property in Pontianak

Investment Real Estate in Pontianak

Investment Property in Pontianak
Investment Property in Pontianak

Pontianak 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 Pontianak.

Search Map of Pontianak Investment Real Estate

Pontianak or Khuntien is the capital of the Indonesian province of West Kalimantan, founded first as a trading port on the island of Borneo, occupying an area of 118.31 km in the delta of the Kapuas River at a point where it is joined by its major tributary, the Landak River. The city is on the equator, hence it is widely known as Kota Khatulistiwa (Equatorial City). The city center is less than 3 kilometres (2 mi) south of the equator. Pontianak is the 26th most populous city in Indonesia, and the fifth most populous city on the island of Borneo (Kalimantan) after Samarinda, Balikpapan, Kuching and Banjarmasin. It had a population of 658,685 at the 2020 Census within the city limits, with significant suburbs outside those limits.

The city was founded as a small Malay fishing village at the mouth of the Kapuas River. It then became the seat of the Pontianak Sultanate for several centuries. Pontianak was then incorporated into the Dutch East Indies after an agreement between the Pontianak Sultanate and the Dutch Government. During the colonial era, Pontianak was the seat of the Residentie Westerafdeeling van Borneo, one of the residencies of the Dutch East Indies.

When the Japanese occupied the Dutch East Indies, Pontianak became the site of the Pontianak massacre, in which many Malay aristocrats and sultans as well as people from other ethnic groups were massacred by the Imperial Japanese Navy, especially in the Massacre of Mandor (Holocaust of Mandor).

After the Japanese surrendered, Pontianak became part of the Republic of Indonesia and was designated as the capital city of the province of West Kalimantan.

Pontianak is a multicultural city, as different ethnic groups such as the Dayak, Malay, Bugis people, and Chinese live in the city, with some immigrants such as Javanese, Madura people, Bataks, Ambon people, Papuans, and Manado people. This has created a culture that cannot be found in other parts of Indonesia. Various languages are spoken in Pontianak, such as Pontianak Malay, Dayak language and different dialects of Chinese and some varieties of Malays, Dayaks, Javanese, Bataks, and Bugis.

Pontianak is connected by air to other cities of Indonesia as well as some cities in Malaysia such as Kuala Lumpur and Kuching. Connected with the Supadio International Airport. Well paved roads of the Trans Kalimantan Road connect Pontianak to all Cities in the Kalimantan, such as Palangkaraya, Banjarmasin, Balikpapan, Samarinda, and Tanjung Selor. other towns also Connected in the Province of West Kalimantan, such as Ketapang, Singkawang, Sintang, etc., as well as other provinces. As Pontianak lies on the Trans Kalimantan Highway, it is possible to travel to East Malaysia and Brunei by land using the Trans Kalimantan Highway. Several bus routes operate from Pontianak to Kuching in Malaysia and Bandar Seri Begawan in Brunei.

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The financial stability of Pontianak 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 Pontianak

 

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

 

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

 

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

Flipping property in Pontianak

 

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

 

The Flipping Strategy in Pontianak

 

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

 

What is distressed Pontianak property:

 

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

 

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

 

Calculate profit that you make from Pontianak investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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