Residential ownership is one of the main purposes of millennials families in Indonesia. The complete data about residential ownership can be accessed extensively in mass media. However, unfortunately, there still a lot of complaints from the young family about the difficulty of purchasing their first residential house which is caused by some factors. What actually hinders house ownership and how is the solution?
First is the price increase for inflation that will continue every year. The rising of house prices is very influenced by various factors like Tax Object Selling Value (NJOP), facilities and the available location, and the details of the house’s specs. The house prices keep increasing, while needs also higher, making millennial generation having difficulty being able to have a residence in the next 10-20 years.
Next is the demands of life that lead to consumerism. The need for showing existence becomes the choice of lifestyle which erodes the salary. So, the priority of salary allocation is more directed to purchase that is experiential rather than buys a permanent asset.
Lastly, millennials are living in the era of the rising sharing economy. Since 2011, Time Magazine listing “the sharing phenomenon” as one of the ideas that changing the human way of living. Currently, how many choices for ride-sharing like Grab or GoCar, vacation home-sharing like Airbnb, then the choice of renting children's toys, renting clothes, and of course renting a residence for a residence. This ease made the millennials change their mindset and began to abandon the concept of buying a home.
Whereas, property ownership is pretty important in household financial planning because it gives flexibility for the owner to inhabit and make it an investment asset. Property is also one of the assets that can be passed on to the next generation.
There are several considerations before buying a residential house.
The first thing that must be decided is to want to buy a residence in the form of a house or apartment. The different shapes and locations should follow lifestyle patterns in households. If the family likes practicality, the apartment options in the middle of the city are quite interesting.
The bank can help to provide an indicative valuation of the value of a property based on appraisal analysis. This is very important to determine the purchase price of the house and the legality of the property. Understand that there are prices according to NJOP (Tax Object Selling Value), and market prices. If the property has a certificate of ownership rights, the value will be higher than which is only expressive.
How about the financial ability for buying a house? The KPR option is often the people's choice given the price of houses that are not cheap. If you have to wait until you have enough funds to buy a house, it feels like it will take a long time to raise funds because the value of the house will continue to rise. To take a mortgage (KPR), you should pay attention to the following two things.
What price can you afford to buy? The indicator is you have funds of at least 20-30% of the purchase price of the house to be used as a down payment (DP). How much is the mortgage installment (KPR) that you can pay? The indicator is you have a cash flow of at least 25% of routine monthly income for at least the next 5 years that is not used for routine consumption needs.
I personally really recommend you to take home loans, when funds are not enough to buy cash. Discipline to set aside income to collect Down Payment will be very useful as an "exercise" we pay mortgage installments (KPR). One thing to note, avoid collecting DP with the help of unsecured loans. Because later your installments will double.
Compare the plus and minus mortgages with a fixed interest of all time with fixed rates of XX last year floating. While window shopping, prepare the legality of the required documents such as Salary Slip, Land Certificate (SHM / SHGB / Sarusun), IMB Certificate (Permit for Building Establishment), UN SPPT, Power of Attorney, Sell Certificate, Inheritance Letter, and others. The bank will give a decision about the eligibility of the property for the loan agreement process if all the necessary documents have been completed.
Live a Beautiful Life!
By: Prita Ghozie from ZAP Finance
01 OCT 2019 | FUTURE ASPIRATION
Set up the Future Financial Plan
19 AUG 2019 | CONVENTIONAL NEWS
Let’s Capture the Beauty of Indonesia through The Lens
Privacy Policy
As privacy is an important aspect for the visitors of PermataBank website, PermataBank is determined to protect the visitors’ privacy. You may browse most part of PermataBank’s website without submitting any personal information. However, you may be asked to disclose certain information for PermataBank to be able to provide the service you request for. The privacy statement in this website is prepared to help visitors understand the types of information provided in PermataBank’s website, and how PermataBank handles the information.
PermataBank is the sole owner of the entire information in this website. PermataBank will not sell, share, or rent the information in this website to other parties in the manner contradictary to the aspect presented in this statement.
During your access to PermataBank website, you may find some information in the form of ”cookie” in your computer, so that PermataBank can recognize you the next time you revisit the website. Cookies refer to small size text archive transferred by the website to a visitor’s hard disk when the visitor is browsing the website. PermataBank does not use cookies to collect personal information such as names or email addresses; therefore, all information collected by cookies will be arranged anynomously. PermataBank only uses cookies to measure the effectiveness of PermataBank online, such as by identifying the repeat visits to PermataBank’s website and observing the channel chosen by visitors when browsing PermataBank’s website, so that PermataBank will be able to adjust the website to your desire. If you do not wish to receive cookies or wish to be informed when cookies are placed, you can arrange your web browser for such purposes, provided that your web browser supports it.
PermataBank will make continuous efforts to maintain the security of your personal information and protect it from manipulation, forgery, and irresponsible access and disclosure. PermataBank will also endeavor to maintain information accuracy.
This website may accommodate links to other sites. Please be aware that PermataBank is not responsible for the privacy practices of other sites. PermataBank strongly recommends website visitors to read the privacy statement of all sites that collect personal information. The privacy statement in this website applies only to the information presented in this website.
PermataBank reserves the rights to change the statement in this website at anytime. PermataBank suggests the visitors of this website to recheck the privacy statement from time to time and learn a number of new privacy practices or modification of PermataBank policies.
Terms of Use
The use and content of this website are provided for your convenience. The information presented in this website is provided for you, without any kind of guarantee, either written or implied, included but not limited to the guarantee on tradeworthy goods and/or services, the compatibility for any purpose, promotion for a product without violating any rule.
This website may contain technical guidance that is inaccurate and typographical errors. PermataBank reserves the right to correct and/or modify the information in this website at any time and by any methods, without prior notice.
PermataBank is not responsible or liable for any material and non-material loss, which may be suffered by anyone or any party, as directly or indirectly resulted from the use of the information contained in this website, either in part or in entirety.
For your convenience, PermataBank can also provide some links to other sites in the Internet, which are owned and/or operated by any party. Please note that those sites are not under PermataBank control, and therefore, PermataBank is not responsible for the content of such websites.