Property, a fundamental necessity, holds a promising future in the business world with its ever-increasing selling value. This aspect, as shared by Beny Lidia during his guest lecture at the MBA Entrepreneurship 69 class at SBM ITB (24/07), makes it a highly profitable venture. Beny, the former Director of PT Sistanda Comsitura and Marketing Manager of PT Permata Niaga Prima, outlined the real estate business’s residential, commercial, and industrial properties. He also shed light on property subdivisions, which include housing, malls, and offices.
Beny Lidia underscored the pivotal role of location in property valuation. He illustrated this with the example of the BSD area, which was relatively inexpensive in the 90s but has become a prime location due to improved access and increased population density.
The purpose of property valuation can vary, such as for insurance agents, realty companies, banks or taxes, market value, and investment. According to Lidia, important valuation principles in real estate include highest and best use, change, balance, supply and demand, contribution, substitution, progression-regression, competition, suitability, and anticipation. The main variables in financial valuation include land price, building cost, rent/price, interest rate, investment return, and time.
Beny also explained the residual method for calculating used property and the contractor method for properties with few comparables. He also highlighted a market trend of fully furnished residential properties that sell faster due to the growing preference for convenience.
Beny also addressed a common dilemma: whether to buy a house on credit or save up and pay in cash. His advice was straightforward: it depends on your short- and long-term needs.
Then, how do you measure the valuation of a property located in an area that is not crowded? Beny suggested considering government regulations such as toll road access or public transportation near the location.
