Indonesia has been a hotspot for many real estate investors seeking to diversify their residential property portfolio by investing overseas. It has the largest economy in Southeast Asia with impressive economic growth ever since it overcame the Asian Financial Crisis in the late 1990s. Its GDP per capita has been increasing at a steady rate, from just $823 in 2000 to $3,392 in the year of 2018. Currently, it is one of the world’s most populated countries and has succeeded in reducing the poverty rate by greater than half since 1998. With strong investment, steady inflation and a healthy job market, the country’s economic outlook remains positive and the growth is predicted to continue in the coming years.

1. Weak Performance in The Residential Property Market

The real estate market has been relatively weak in recent years, which is a testament to the country currently being one of the most affordable real estate markets in Asia. After undergoing a sharp growth in 2012, the residential market has cooled down in the past few years. According to the Federal Reserve Bank of St. Louis, the average price increase reduced from 14% to just 3% between 2013 and 2018. In the second quarter of 2019, it was approximately 2.5%, which was comparatively lower. However, there was a substantial increase in the presales market in the first half of 2018, and based on a report by DBS Bank, demand for residential properties increased in 2018, alongside an improvement in the rental yields.

2. Strong Demand Predicted in The Coming Years

Despite the prevailing weak performance in the market, several factors will positively affect the market in 2020 and the following years. Experts have predicted that the economy will grow by 5.3% with one of the main factors being a 8.5% increase in the government’s budget for 2020. In addition, multiple international investors have invested in the financial segment and other sectors, which has led to more investment and a higher consumption by the middle-class consumers. A report by the World Bank indicates that 50 million people fall under the middle-class category and have a substantial impact on the economy. Hence, younger people, with rising disposable incomes, will slowly flip the housing market around as demand for housing rises. And also, various mega infrastructure projects have been planned, which will further result in an increase in demand for residential properties far away from the central areas. The combination of these growth-inducing factors, coupled with stable Indonesian Rupiah, will improve the real estate market in Indonesia.

3. Various Real Estate Ownership Options for Foreigners

Currently, there are a few options available for foreigners to invest in real estate. Many foreigners purchase residential properties through the names of Indonesian citizens. These citizens act on the foreigners’ behalf to obtain “Right to Own” certificates for their properties. However, this is a risky practice as a citizen can overtake the property that he has acquired on behalf and there is not much a foreigner buyer can do in this case. In fact, many have lost their money via this scheme. On the other hand, there is a safer way for foreigners to own properties in Indonesia. A foreign investor can set up a foreign limited liability company in the country and be given the right to either build or use property. However, there are many requirements that a foreign investor needs to meet in relation to this right. Speaking of which, the Indonesian government has recently streamlined the country’s licensing process for foreign investment, which will further lead to an increase in demand for housing estates.

4. Increasing Number of Facility Management Options for Foreign Investors

The growing number of facility management companies in Dubai with a gradual, strong growth in the facility management market has been due to the country’s rapid development in the real estate sector and massive spending on upgrading the infrastructure of the metropolis. Hence, Indonesia will experience the same growth, and the facility management market is already at the growing stage, the rate of which is expected to increase. When it comes to facility management, foreigners will have very little problem managing their properties despite many miles away.

Given the predicted strong demand for housing estates in the country in the coming years and the current, cheap selling prices of residential properties, now may be the right time to consider getting a housing estate in the country. Being able to outsource many types of facility management processes, foreigner investors will not have to worry about managing their real estate in the future. 

As a real estate seller, you are likely (if not certain) to get many pieces of advice over the years. Many people in your industry – and even individuals who do not work in your industry – will think themselves fit to give you sage advice. Some of this advice will be honest and true and valuable, and some of it will prove to be nothing more than noise. Of course, it takes some practice and trial and error to figure out which advice is worth listening to and which advice is better left on the back burner. However, if there was one piece of advice that every real estate seller should heed, it is simple: sell your property as honestly as you possibly can.

Why should you do this? Well, the answer is quite simple. There are multiple reasons for this, some of them obvious, and some of them not so obvious. At the end of the day, it is all about doing the right thing by every party involved in the real estate sale in question. When it comes to selling property investment to eager real estate buyers, it is crucial that you approach every sale honestly. Here are the three most important reasons to sell your property honestly rather than strictly for your own benefit.

Peace of mind

More than anything else, there is the reality that honest selling is just the right thing to do. For your own peace of mind, sell your property as honestly as you possibly can. There is nothing worse than a smeared conscience, and if you knowingly sell the piece of real estate with some unnoticed, unmentioned issues hiding around the corners and under the floors, then they can – and almost certainly will – come back to haunt you over the years. If for no other reason than your peace of mind, sell your real estate property honestly and guilt-free.

Covering your bases

If you ensure that your real estate property is sold as honestly as possible, you can ensure that you have covered all your bases. Essentially what this means is that if problems arise with the piece of real estate after the handover, you can rest assured that you were entirely unaware and not at fault, and thus not liable for any damages or problems that might come to the surface in the decades after the sale. Of course, it is generally challenging, if not impossible, to stick a previous owner with issues that arise after you buy and move into a property, but it is never a bad thing to be on top of this aspect of the sale.

A positive track record

When you sell your real estate property honestly, you maintain a clean and positive track record in the real estate industry. It might sound surprising, but your track record as a real estate seller almost never matters – except when you get it wrong. People expect real estate sales to be orchestrated honestly, but if you go the other way, then your reputation will surely proceed you in the worst way. If you sell your real estate property honestly, you maintain your positive track record. Have you ever heard the saying, ‘no news is good news’? In the case of real estate sales, that is genuinely true.

Real estate is one of the most rewarding investments that an individual can possibly make. There is nothing in the world quite like investing your money into an opportunity that provides just as much comfort as it does overall value. For this reason (and so many other reasons too, of course), real estate remains – and likely will always remain – one of the single best investments you can ever make in your lifetime. Sometimes doing so means considering dual occupancy home design, and in other circumstances it means completely bringing your dream home to life. Regardless of which way you go about it, however, there is no denying that real estate is an incredible investment that everyone should at the very least consider.

If you are looking to invest in real estate opportunities around the world as a real estate buyer, there is perhaps nowhere in the world better to invest in than the Australian coastline. This is especially true if you happen to be a real estate buyer from somewhere abroad (Indonesia, for instance). Why? Well, there are multiple reasons why investing in Australian real estate – especially within reasonable driving proximity or even along the Australian coastline – is such a phenomenal idea. Here are the three best reasons for buying your next real estate investment in the land down under.

The Aussie coastline feels like a home away from home

This is especially true if you are from Indonesia and looking to make an international real estate investment. Why is that, you ask? Because the Australian climate mirrors that of Indonesia – sunny, stunning beaches, incredible flora and fauna, lovely locals…this is the place that has it all. The only difference that really matters? It is not as humid as Indonesia most (if not all) the time – so really, there is no reason not to invest in real estate here.

You will never be short of renters if you want to rent out

One of the biggest reasons to buy real estate on the Australian coastline is that you will never be short of renters if the time comes that you wish to rent your property out. This means that you can keep the property in your global real estate portfolio without necessarily having to live in it or pay your mortgage out of pocket – your tenants will take care of that for you. On a national and even international level, the Australian coastline is one of the most coveted places for buyers and renters alike – so odds are, your property will never go out of style.

Close to home, you can easily travel between the two

Australia is about as close to Indonesia as it gets. This means that you can easily travel between the two whenever you want to. Whether you are at home in Bali, or living it up in your beach pad in Australia, you are going to be in close proximity to kind people, some of the best waves in the world, fresh produce, and a home that beautifully encapsulates everything you ever wanted it to. What is there not to love? What are you waiting for?