Investment Property in Pekanbaru

Investment Real Estate in Pekanbaru

Investment Property in Pekanbaru
Investment Property in Pekanbaru

Pekanbaru 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 Pekanbaru.

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Search Map of Pekanbaru Investment Real Estate

Pekanbaru is the capital of Indonesian province of Riau, and a major economic center on the eastern part of Sumatra Island. Its name is derived from the Malay words for ‘new market’ (‘pekan’ is market and ‘baru’ is new).
It has an area of 632.26 km2 (244.12 sq mi) with a population of 897,767 at the 2010 Census, and 1,121,562 according to the latest official estimate for mid 2019. Located on the banks of the Siak River, which flows into the Strait of Malacca, Pekanbaru has direct access to the busy strait and long known as a trading port. Pekanbaru was originally built as a market by Minangkabau merchants during the 18th century.

A settlement has existed on the site since the 17th century. In the late 19th century, the city was developed to serve the coffee and coal industries, and the Dutch built roads to help ship goods to Singapore and Malacca. This city has an airport called Sultan Syarif Kasim II International Airport, and a port called Sungai Duku that is located by the Siak River.

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The financial stability of Pekanbaru 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 Pekanbaru

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

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

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

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

Flipping Investment Property in Pekanbaru

Flipping property in Pekanbaru

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

The Flipping Strategy in Pekanbaru

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

What is distressed Pekanbaru property:

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

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

Calculate profit that you make from Pekanbaru investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Pekanbaru

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

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