Online property investment is a method of investing in the property sector through digital platforms. This type of investment is becoming increasingly popular, especially among young people, as it offers ease of access, flexibility, and relatively lower capital requirements compared to conventional investments.
However, before starting, it’s important to first understand the different types and advantages of online property investment. With the right understanding, you can design a more targeted and optimal investment strategy. Learn more through the explanation below.
What is Online Property Investment?
Online property investment is a method of allocating funds into the property sector through digital platforms. In other words, you don’t need to directly purchase the property yourself. This method is also known as fractional property investment.
This system works through crowdfunding, where you co-invest in a property project together with other investors. You can invest alongside others through legal platforms supervised by the Financial Services Authority (OJK).
Compared to conventional property investment, the online version is generally more affordable. You don’t need a large amount of capital—sometimes starting from as low as IDR 1 million. For example, for a property worth IDR 5 billion, you only need to contribute a certain percentage of the total value.
Once the project is running and the property is rented out, the rental income will be distributed to investors proportionally according to their respective shares.
This investment model is gaining popularity because it is practical, requires flexible capital, and is accessible to anyone—individuals, groups, or institutions—using electronic payment systems.
Types of Online Property Investment
There are several types of online property investment instruments you can consider. Each has its own working mechanism, profit potential, and risk level. Here are some of the most common types:
1. Property Developer Stocks
One option is to invest in the stocks of property development companies. Today, stock investment is growing in popularity and is no longer limited to sectors like mining, FMCG, or digital.
You can purchase shares from property developers such as Metropolitan Land Tbk, Agung Podomoro Land, or Sinar Mas Land as part of your investment portfolio.
2. Asset-Backed Securities (EBA)
EBA is an investment instrument issued by a Collective Investment Contract (KIK) with a portfolio of financial assets, such as mortgage receivables or commercial papers.
This type of investment is regulated and can be accessed online. Through EBA, you can earn returns from loan repayments without directly owning the property.
3. Real Estate Investment Funds (DIRE)
DIRE is a pooled investment fund collected from many investors, which is then managed and invested into various property assets such as houses, apartments, or shop houses.
By regulation, at least 80% of the collected funds must be allocated to the property sector, with at least 50% of it invested directly in physical property assets.
4. Crowdfunding
Crowdfunding property investment allows you to co-own property with other investors at a more affordable entry point.
While you don’t have to manage the property directly, you should be cautious as this scheme may carry fraud risks. Always ensure the platform is licensed and supervised by OJK.
5. Property Bonds
Property bonds are a type of online property investment accessible via the Indonesia Stock Exchange (IDX) that provides periodic interest payments.
While not yet widely offered, some companies have begun issuing such bonds with attractive returns.
Additionally, there are property development financing schemes where you can choose a specific project to fund and earn returns from the repayment installments made by property owners.
Advantages of Online Property Investment
Before starting an online property investment, it’s good to know its main advantages. Here are some benefits that make it worth considering:
1. Easily Check Properties and Prices
You can monitor property details and prices directly through mobile apps. Information is updated regularly, and price notifications are sent automatically, making transactions more convenient.
2. Invest with Small Capital
This type of investment is suitable for those with limited funds. You can buy property developer stocks in the capital market without purchasing a property outright—while still considering risks and market prospects.
3. Long-Term Investment
Property is generally a long-term investment instrument with significant potential returns. Whether through developer shares or physical assets, property value tends to appreciate over time if managed and held for several years.
4. Crowdfunding System
Crowdfunding allows you to invest jointly with others using more affordable capital. However, since many platforms offer this service, you should remain selective and cautious.
Things to Consider Before Investing in Online Property
Before you start, here are some crucial points to pay attention to. These steps are essential to minimize risk and help you make wiser investment decisions:
1. Understand the Risks
Every investment carries risks, including online property investment. Therefore, it’s important to learn about its characteristics and potential risks before committing—especially if you’re serious about entering this field.
2. Choose the Right Investment Type
After understanding the risks, the next step is to choose an investment type that matches your financial capacity and goals. For beginners, it’s advisable to start with low-risk instruments to build knowledge and confidence.
3. Choose a Trusted Institution
Make sure you invest through a reputable and legally registered institution. If choosing property stocks, select developers with solid experience and a positive track record.
That was a complete explanation of online property investment—from the definition and types to its advantages. With more affordable capital and easy access via digital platforms, this can be an attractive option, especially for those looking to start building assets early.
However, like any financial decision, investment requires careful planning and financial readiness. It’s important to ensure your finances are stable before taking the plunge.
If you’re planning your financial future and need flexible funding solutions, BFI Finance is ready to assist you. With over 40 years of experience in the financing industry, BFI Finance has helped Indonesians meet a wide range of financial needs.
Not only that, BFI Finance is licensed and supervised by the Financial Services Authority (OJK), ensuring every service offered is safe, legal, and reliable.
With collateral in the form of a motorcycle BPKB, car BPKB, or house/shop/office certificate, you can obtain funding to support your first steps into investing. So, let’s start your investment journey to build a more secure future—because #SelaluAdaJalan with BFI Finance.
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