real estate or land-banking?...geo-technical report [water and electricity] transfer the title deed...

1
COMMERCIAL REAL ESTATE RAW LAND INVESTING & NEW DEVELOPMENT LAND INVESTING - A HUGE OPPORTUNITY WHY CHOOSE TO BUY LAND OVER A HOUSE OR A FLAT ? FORCED APPRECIATION STRATEGY residential real estate includes everything from single-family homes to multi-unit properties that can be rented out to tenants or sold to homeowners. This type of real estate investment is undoubtedly the most common. TYPES Single-Family Duplex Multi-family Vacation-Homes Apartment GETTING STARTED Familiarise yourself with the market Identify the right type of property for your area Find the funding for your down payment PRO TIP There are a number of tax benefits associated with owning residential real estate. Be sure to study the ways tax benefits can better your investment business Commercial properties are buildings used primarily for business, be it office space, hotel accommodation or even, in some cases, residential housing. Multi-units or apartments are considered commercial after they exceed a certain number of units. The specifics vary by state or market. TYPES Office Buildings Industrial Warehouses Retail Hotels GETTING STARTED Choose the right location Analyse comparable properties Use the right metrics to evaluate a property PRO TIP In many cases, one of the biggest perks of commercial real estate is longer leases. Investors can often secure rental contracts that last multiple years. Land is considered by most experienced investors as the safest asset during a period of financial turmoil. Premium land in the right location will always appreciate so, even during a crisis, the investment is safe. TYPES Vacant Land Working Farms Ranches GETTING STARTED Identify a high-growth market area Decide whether to develop, subdivide or hold the land Acquire the right permits for your intended use Add basic infrastructure for forced appreciation PRO TIP Market research is essential for raw land investing., Carry out due diligence and look into any recent developments in the area you plan on investing Build the house of your dreams Land and capital appreciation Income stream from renting/leasing the land Enjoy the freedom to change the shape and size of your project No need to consider possession dates or construction delays History suggests demand for land is grow- ing and supply is decreasing. Ideal for appreciation Low Entry Price Long-Term Appreciation Maximum Flexibility Minimal Overheads CHINA The Belt & Road Initiative 2 SINGAPORE Jurong Innovation District 9 AUSTRALIA Barangaroo Towers 8 3 11 1 6 MALAYSIA KL River City INDONESIA New Bali Mandalika, Lombok 7 USA Hudson Yards INDIA Charanka Solar Park TURKEY Urban Renewal Project Istanbul DUBAI Dubailand 4 FORTALEZA, BRAZIL Sustainable Urban Development Project 10 SOUTH AFRICA, JOHANNESBURG Modderfontein New City 5 7 WORLD INVESTMENT DESTINATIONS DRIVING LAND BANK OPPORTUNITIES RESIDENTIAL REAL ESTATE 1. Land acquisition and ownership Land research and potential zoning assessment selected Land undergoes due diligence process Geologist, architect and engineer run a soil test and geo-technical report [water and electricity] Transfer the title deed under your name or company’s name Land can be subdivided into smaller plots 2. Added value with added infrastructure Water access Electricity access Road access Forced appreciation strategy AVG. 30% increased value on plot with basic infrastructure 3. Land bank or development Assessment of market readiness and planning of next move Investors either land-bank or proceed with construction For development consult with experts on the architectural and construction process For land banking hold the asset and gain through natural appreciation Seek for secondary market assistance to generate liquidity [Rent or lease] REAL ESTATE OR LAND-BANKING? Sources: The Tourism Ministry Central Statistics Agency | www.bps.go.id Law No. 1 of 1967 on Foreign Capital Investment (Original Law); Indonesian Law No. 40 of 2007 on Limited Liability Companies (Company Law); Law No. 25 of 2007 on Capital Investment (Investment Law). See also: www.indonesia-investments.com/business/foreign-investment/investment-law-indonesia /item8322 The Diplomat | www.thediplomat.com/2018/06/indonesias-booming-tourism-industry/ World Bank | www.projects.worldbank.org/P003738/bali-tourism-project?lang=en Indonesia Expat | www.indonesiaexpat.biz/travel/indonesia-expands-tourism-help-economy/ Straits Times | www.straitstimes.com/asia/jokowi-plans-to-replicate-balis-success-in-10-other-indonesia n-spots Jakarta Post | www.thejakartapost.com/news/2018/01/24/indonesia-invites-china-to-invest-in-10-new- bali.html www.thejakartapost.com/travel/2018/10/31/the-10-new-bali-book-launched-in-singapore .html Invest Islands | www.invest-islands.com/10-new-balis-catalysing-growth-beyond-ba li/ Top Bali | www.topbali.com/indonesia-free-visa-entry/ WowShack | www.wowshack.com/10-new-balis/; Quora | www.quora.com/Which-islands-in-Indonesia-will-be-the-next-Bali Travel and Tourism Competitiveness Report 2017 by the World Economic Forum (WEF) Bloomberg | www.bloomberg.com/news/articles/2017-10-19/creating-10-new-b alis- indonesian-tourism-plan-starts-with-china The Syndey Morning Herald | www.smh.com.au/business/a-new-bali-indonesia-pushes- for-australian-investment-in-tourism-and-infrastructure-20170810-g xtdtd.html Culture trip | www.theculturetrip.com/asia/indonesia/articles/this-up-and-comin g- island-has-been-dubbed-the-next-bali/ SAYS | www.says.com/my/lifestyle/visit-mandalika powered by www.invest-islands.com

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Page 1: REAL ESTATE OR LAND-BANKING?...geo-technical report [water and electricity] Transfer the title deed under your name or company’s name Land can be subdivided into smaller plots 2

RESIDENTIAL REAL ESTATE

COMMERCIAL REAL ESTATE

RAW LAND INVESTING & NEW DEVELOPMENT

LAND INVESTING - A HUGE OPPORTUNITY

WHY CHOOSE TO BUY LAND OVER A HOUSE OR A FLAT ?

FORCED APPRECIATION STRATEGY

residential real estate includes everything from single-family homes to multi-unit properties that can be rented out to tenants or sold to homeowners. This type of real estate investment is undoubtedly the most common.

TYPESSingle-FamilyDuplexMulti-familyVacation-HomesApartment

GETTING STARTEDFamiliarise yourself with the marketIdentify the right type of property for your areaFind the funding for your down payment

PRO TIPThere are a number of tax

bene�ts associated with owning residential real estate. Be sure to study the ways tax bene�ts can better your investment business

Commercial properties are buildings used primarily for business, be it office space, hotel accommodation or even, in some cases, residential housing. Multi-units or apartments are considered commercial after they exceed a certain number of

units. The specifics vary by state or market.

TYPES O�ce BuildingsIndustrialWarehousesRetailHotels

GETTING STARTEDChoose the right locationAnalyse comparable propertiesUse the right metrics to evaluate a property

PRO TIPIn many cases, one of the

biggest perks of commercial real estate is longer leases. Investors can often secure rental contracts

that last multiple years.

Land is considered by most experienced investors as the safest asset during a period of financial turmoil. Premium land in the right location will always appreciate so, even during a crisis, the investment is safe.

TYPES Vacant LandWorking FarmsRanches

GETTING STARTEDIdentify a high-growth market areaDecide whether to develop, subdivide or hold the landAcquire the right permits for your intended useAdd basic infrastructure for forced appreciation

PRO TIPMarket research is essential for raw land investing., Carry out

due diligence and look into any recent developments in the area

you plan on investing

Build the house of your dreams

Land and capital appreciation

Income stream from renting/leasing the land

Enjoy the freedom to change the shape and size of your project

No need to consider possession dates or construction delays

History suggests demand for land is grow-ing and supply is decreasing. Ideal for

appreciation

Low Entry Price

Long-Term Appreciation

Maximum Flexibility

Minimal Overheads

CHINAThe Belt & Road Initiative 2

SINGAPOREJurong Innovation District9

AUSTRALIA Barangaroo Towers 8

3

11

16MALAYSIA

KL River City

INDONESIANew Bali Mandalika, Lombok

7USAHudson Yards

INDIACharanka Solar Park

TURKEYUrban Renewal Project Istanbul

DUBAIDubailand 4

FORTALEZA, BRAZILSustainable Urban Development Project 10

SOUTH AFRICA, JOHANNESBURGModderfontein New City

5

7

WORLD INVESTMENT DESTINATIONS DRIVING LAND BANK OPPORTUNITIES

RESIDENTIAL REAL ESTATE

1. Land acquisition and ownership

Land research and potential zoning assessmentselected Land undergoes due diligence processGeologist, architect and engineer run a soil test and geo-technical report [water and electricity]Transfer the title deed under your name or company’s nameLand can be subdivided into smaller plots

2. Added value with added infrastructure

Water access

Electricity access

Road access

Forced appreciation strategy

AVG. 30% increased value on plot with basic

infrastructure

3. Land bank or development

Assessment of market readiness and planning of next move

Investors either land-bank or proceed with construction

For development consult with experts on the architectural and construction

process

For land banking hold the asset and gain through natural appreciation

Seek for secondary market assistance to generate liquidity [Rent or lease]

REAL ESTATE ORLAND-BANKING?

Sources:

• The Tourism Ministry

• Central Statistics Agency | www.bps.go.id

• Law No. 1 of 1967 on Foreign Capital Investment (Original Law); Indonesian Law No. 40

of 2007 on Limited

Liability Companies (Company Law); Law No. 25 of 2007 on Capital Investment

(Investment Law). See also:

www.indonesia-investments.com/business/foreign-investment/investment-law-indonesia

/item8322

• The Diplomat | www.thediplomat.com/2018/06/indonesias-booming-tourism-industry/

• World Bank | www.projects.worldbank.org/P003738/bali-tourism-project?lang=en

• Indonesia Expat |

www.indonesiaexpat.biz/travel/indonesia-expands-tourism-help-economy/

• Straits Times |

www.straitstimes.com/asia/jokowi-plans-to-replicate-balis-success-in-10-other-indonesia

n-spots

• Jakarta Post |

www.thejakartapost.com/news/2018/01/24/indonesia-invites-china-to-invest-in-10-new-

bali.html

www.thejakartapost.com/travel/2018/10/31/the-10-new-bali-book-launched-in-singapore

.html

• Invest Islands |

www.invest-islands.com/10-new-balis-catalysing-growth-beyond-ba

li/

• Top Bali | www.topbali.com/indonesia-free-visa-entry/

• WowShack | www.wowshack.com/10-new-balis/;

• Quora |

www.quora.com/Which-islands-in-Indonesia-will-be-the-next-Bali

• Travel and Tourism Competitiveness Report 2017 by the World

Economic Forum (WEF)

• Bloomberg |

www.bloomberg.com/news/articles/2017-10-19/creating-10-new-b

alis-

indonesian-tourism-plan-starts-with-china

• The Syndey Morning Herald |

www.smh.com.au/business/a-new-bali-indonesia-pushes-

for-australian-investment-in-tourism-and-infrastructure-20170810-g

xtdtd.html

• Culture trip |

www.theculturetrip.com/asia/indonesia/articles/this-up-and-comin

g-

island-has-been-dubbed-the-next-bali/

• SAYS | www.says.com/my/lifestyle/visit-mandalika

powered by

www.invest-islands.com