Property investment strategy.

Professional working 8 – 5, rely on salary is not wise. Because we need passive income to pursue a dream for kids future. That was why , in spare time and weekend hunting for property investmennt. My main profession is in Finance institution, no time to start business. And try property investment, earning for my family. I did this for 3 decades. Here is my property investment strategy.

1. Property investment in business distric.

Property investment close to schools

First property investment, I bought a small house, at business district in Kelapa Gading, Jakarta.. Hundres stores and shopping mall developed by a public company. Before made my mind, I find out the best developers in Jakarta, Indonesia. Soon after housed developed then rent it as additional passive income.

As the professional we are afford to pay the installment if had a plan in mind. For instance, I had a dream to send my kids study in US. To pursue the dream, I bought the 1st property, apply a loan for 3 years installment. The price Rp 25 million or US$ 12.500. As a consequences my family sacrifies much, to pay installment first. Cancel all secondary expenses like traveling, dine out etc.

In 5 years, we sold the house for Rp 38 million or $ 19.000. For 5 years gain $ 6,500 or 10,4% annually. Not too high but far above Certificate of Deposit or inflation rate. Then Investment property again,. This time, a bigger one, 240 meters, 2 floors for Rp 250 million or $ 125.000. The house located in the same area, in front of big shopping mall. Also surrounded by hundred of 2 floors stores. Sold the first house as a down payment. And the rest apply a loan again.

Fortunateky, 6 years later the Shopping mall extended became 5 malls. As a result, investment property in the area rocketed high. Without any promotion, 2 neighborgs competed to offer a very high price. We sold Rp 425 million or $ 212.500 and gain $ 87,500 or 11,67 % annually. This amount mean a lots to our family for first son send to US for study.

Property investment in business district

Before transaction, we invest property again, a new house, 400 meters, 2 floors in a road corner. Garage for 4 cars. Instead of apply a loan, we pay hard cash from sold the 2nd house. Even more got excess funds because the new one, the bigger but cheaper. Because far away from business district. Above all, this time property investment generate income. A house buy a new house hard cash, without apply a loan.

The location farher from shopping mal, 500 meter away. However, surrounding by 3 big schools. For instance International school, Taipei school and 3 floors Christian school.

2. Property investment near school.

Residents who buy house, preferred not too far from schools for children. That was why we buy a house near 3 schools above. International schools and Taipei schools indicated that residents were expatriates and business men Later, sell the house easier, we thought.

In spite of economic crisis hitted Asia 1998 however, we sold the house 6 years later for best price. We bought Rp 425 million and sold 6years later Rp. 2 billion. Got gain 61,76% annually. My dream come true, afford to send 2 more kids study in US.

Short after sold our house, we looking to second house not too far from shopping mal in the East side. We bought 400 meter land and second house in the road corner.. And then built a new house value Rp 1 billion with garden and fountain. So we had excess fund half, Rp 1 billion for saving, including visit kids in US and around the World.

3. Property investment near exit toll road.

A first property investmen, a small house

Since land price very expensive in the capital city, then hunting in suburb. As long as any toll road doesn’t matter. Beside, the price relatively cheap. Youngers who just married preferred lived and bought outside the capital city. Then we hunting to the West of capital. Soon after found 1.000 meters land for Rp 15 million or $ 7.500. To earn passive income again, we built tenement houses for rent. Fortunately, 2 decades later, the value of land and houses increase to Rp 2,5 billion or $ 178.571. But we don’t intend to sell it, for family passive income. Ultimately, recently these houses became fountain clear water to our family. Rent earning more then main pension payment.

The main reason I bought this land because not too far from an University that student rent the rooms. Fortunately, land price increase because Government constructed exit toll toward our houses. And not students rent but workers.

Beside investment in vacant land, we bought a house in new develop city outside the capital city, beside a toll road too. In time of booming property investment, I was in line to get one. Fortunately a nice location in road corner and not far from basic international school. Meanwhile the house vacant for 2 years. Because we plan to sell it right after finished. Finally in the 3rd year a teacher of international school bought the house for Rp 250 million.

Economic crisis affect investment.

God did not promises days without pain. Some days thunder and flooding. Like property investment, in time of economic crisis beyond our expectation. When economic crisis hitted Asia, I was unable to pay installment. Because an apartment price in US$ and my salary in Rupiah. Suddenly rates rocketted from.Rp 2.000 to Rp 15.000.

Finally, I hands up and asked for installment pay back. Developer understand the situation and gave my money back for $ 25.000 without any penalty. Recently apartmen convert to International hotel. Including my room in floor 10.

My son house in La Habra city, South California too affected of global economic crisis in 2008. His house confiscated by Bank. Took 10 years later, he eligible to apply for a loan for a new house.

Keep networks for property investment

What I wrote above related to good network relationship. The first house bought because my class mate in University saw me his house. Soon after, I ordered one the same type, 120 meters. Thank Gods that we were friends for 15 years.

Two properties bought one in new citty and an aparment offered by friend in a Bank who knew my account. Thanks to her to offered me the properties.

Once I was transfered to Surabaya city in East Java. My client, developer offered me to build a house in elite house compound. I love his offered, 2 floors in the road corner, I like most. Good neighborjood. Only 1 year in Surabaya and back to Jakarta again. Then the house sold just in a day. Fly in the morning to Surabaya and back late afternoon. Transaction closed.

The group of employee also categorized as friends. Then set up a cooperative business or crowd funding, in order to buy land in one area. The area might be outside the capital but easy access to transportation. Once I set up cooperative for my employee. Soon after organized, then apply loan to buy the land and distributed. Then instalment deducted from montly salaries.

Have a good friends and networks to be good in property investment.


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Thanks so much for sharing helpful!


This article really makes sense to realtors like me! thanks!