Investment Property in Bandung

Investment Real Estate in Bandung

Bandung 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 Bandung.

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Search Map of Bandung Investment Real Estate

Bandung () is the capital of West Java province in Indonesia and fourth-largest city in Indonesia, yet Greater Bandung is the country’s second-largest metropolitan extended with over 11 million inhabitants. Located 768 metres (2,520 feet) above sea level, approximately 140 kilometres (87 miles) southeast of Jakarta, Bandung has cooler year-round temperatures than most other Indonesian cities. The city lies on a river basin surrounded by volcanic mountains that provides a natural defense system, which was the primary reason for the Dutch East Indies government’s plan to move the capital from Batavia (modern-day Jakarta) to Bandung.

The Dutch first established tea plantations around the mountains in the 18th century, and a road was constructed to connect the plantation area to the colonial capital Batavia (180 kilometres (112 miles) to the northwest). In the early 20th century the Dutch inhabitants of Bandung demanded the establishment of a municipality (gemeente), which was granted in 1906, and Bandung gradually developed into a resort city for plantation owners. Luxurious hotels, restaurants, cafés, and European boutiques were opened, leading the city to be nicknamed Parijs van Java (Dutch: “The Paris of Java”).

After Indonesia declared independence in 1945, the city has experienced ongoing development and urbanisation, transforming from an idyllic town into a dense 16,500 people/km² (per square kilometre) metropolitan area with living space for over 8 million people. New skyscrapers, high-rise buildings, bridges, and gardens have been constructed. Natural resources have been heavily exploited, particularly by conversion of the protected upland area into highland villas and real estate. Although the city has encountered many problems (ranging from waste disposal and floods, to a complicated traffic system resulting from a lack of road infrastructure), it still attracts large numbers of tourists, weekend sightseers, and migrants from other parts of Indonesia. In 2017 the city won a regional environmental sustainability award for having the cleanest air among major cities in ASEAN. The city is also known as a Smart City, leveraging technology to improve government services and social media, that alert residents to issues such as floods or traffic jams. Bandung is Indonesia’s major technology center. The city is part of the UNESCO Creative Cities Network, which it joined in 2015.

The first Asian-African Conference, the Bandung Conference, was hosted in Bandung by President Sukarno in 1955. Redevelopment of the existing Husein Sastranegara International Airport (BDO) was completed in 2016. To improve infrastructure, construction of the Jakarta-Bandung high-speed rail was started in 2016 and is projected to be completed in 2021. This is to be complemented by an indigenous type of Automated People Mover (APM) and Light Rail Transit (LRT). The new larger second airport, Bandung Kertajati International Airport (KJT) opened in June 2018, just in time for the 2018 Asian Games.

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The financial stability of Bandung 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 Bandung

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

Whatever your goals with investment property in Bandungare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Bandung and be prepared to change your initial outlook.
Thoroughly research the Bandung location with a special emphasis on fringe areas outside the main Bandung metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Bandung.
Ensure that your target investment property in Bandung 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 such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Bandung properties yourself is an easy option, but are these savings justifiable when you run into Bandung red tape? Physis Realty Bandung office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Bandung buy-to-rent sector.

With our expert guidance, investing in Bandung provides the secure knowledge that your money is working harder than it would in a local Bandung bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Bandung, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Bandung property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Bandung

Flipping property in Bandung

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

The Flipping Strategy in Bandung

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

What is distressed Bandung property:

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

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

Calculate profit that you make from Bandung investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Bandung

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Bandung, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Bandung should be entrusted to only the highest-quality agency.

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