Investment Property in Tarakan

Investment Real Estate in Tarakan

Investment Property in Tarakan
Investment Property in Tarakan

Tarakan 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 Tarakan.

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Search Map of Tarakan Investment Real Estate

Tarakan is an island and the largest city of the Indonesian province of North Kalimantan. The island city is located in northern Borneo, just across the border from Sabah, Malaysia. The city boundaries are co-extensive with the island (including a couple of small islands off the coast of Tarakan Barat District). Once a major oil-producing region during the colonial period, Tarakan had great strategic importance during the Pacific War and was among the first Japanese targets early in the war. It is the sole city within the newly established (in 2012) Indonesian province of North Kalimantan. According to Statistics Indonesia, the city had a population of 193,370 at the 2010 Census and 270,894 inhabitants at the latest official estimates in mid 2019.

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The financial stability of Tarakan 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 Tarakan

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

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

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

With our expert guidance, investing in Tarakan provides the secure knowledge that your money is working harder than it would in a local Tarakan 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 Tarakan, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Tarakan property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Tarakan

Flipping property in Tarakan

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

The Flipping Strategy in Tarakan

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

What is distressed Tarakan property:

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

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

Calculate profit that you make from Tarakan investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Tarakan

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 Tarakan, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Tarakan should be entrusted to only the highest-quality agency.

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