Ruko (shophouse) is quite often found in Indonesia. The characteristic of a shophouse building is that it consists of 2-3 floors and usually has different functions between floors. Shophouses typically have a narrow front view and extend upwards. The first floor is often used as a commercial function, such as a rental office or a place of business. However, some essential things must be considered carefully before buying a shophouse. Here are some tips that can help you purchase a shophouse.
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Determine the Needs and Reasons for Buying a Shophouse
When planning to buy a shophouse, make sure you have determined its function. You can use it as a rental office, a residence, or a place to run a family business. By selecting the function first, you will find it easier to determine other factors.
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Choose a Strategic and Appropriate Location
You need to consider locations as a fundamental factor when buying a shophouse. Choose a strategic location, an area crowded and easily accessible by various public transportation. Locations near shopping centers, offices, or residential areas are more profitable.
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Adjust the Budget
After determining the function and location, check the budget you have prepared to buy a shophouse. Ensure you have adjusted it to your financial capabilities and projected your cash flow afterward. If your capital is not sufficient, you can consider the mortgage option.
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Consider Various Potentials
Checking public and social facilities is fundamental when buying a property. However, when purchasing a shophouse for business purposes, you need to consider the development potential of the surrounding area. If your business overgrows in 2-3 years, ensure the location allows expansion. Also, the ease of transportation and environmental safety should be considered.
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Check the History and Completeness of Property Documents
Property purchase is a significant investment. Make sure you have checked the ownership papers of the shophouse you want. Also, know the history of the shophouse, from the advantages to the disadvantages of the building, such as water cleanliness, airflow, and others.
Considering all the critical aspects above, you can decide better when buying a shophouse. Strategic location, clear legality, good building conditions, promising business potential, and careful financial planning are the primary keys to a successful investment. With proper preparation, the shophouse you buy will be a valuable asset and a stable source of income. For more financial tips, check here.