Guide to Buy Your Very Own Apartment as a First Jobber in Jakarta

The price of property increases every year, however it is not followed with an equal rise on Provincial Minimum Wage (UMR).

The exterior of the Gateway Apartment building is unique and forms a pattern
Minute Read

4 mins

Published

03.02.2021

The price of property increases every year. However, it is not followed by an equal rise in Provincial Minimum Wage (UMR). This condition caused numerous median income workers, especially in the metro area, unable to afford new homes. Ali Tranghanda, Executive Director of Indonesia Property Watch claims that there has been no housing market that targets the worker group segment.

“Ironically, there is no policy that targets this group, which is in the middle, not lower, segment,” he said, quoted from Bisnis.com, Tuesday (1/12/2020).

He admitted that the workers’ group is a “barely sufficient segment” in terms of ability and purchasing power. They would not buy affordable housing at a price of Rp 300 million for various reasons, but they also cannot afford housing that costs above Rp 800 million.

In the last decades, the middle-income household has been buying new homes in the Greater Jakarta area, such as Depok, Bekasi, Tangerang, and Bogor. However, with the increasing demand, the price of houses in strategic locations has also increased. This situation has forced middle-income workers and first jobbers to buy a new apartment as their first property.

View of old apartment tower at Bandung, Indonesia

Tips on buying apartments

1. Research

Doing research is essential before setting your eye on an apartment. Don’t buy an apartment solely based on their affordability, but you need to first consider whether or not it will be convenient for you. From the location, accessibility, environment, maintenance fee, to project timeline if you’re purchasing an apartment that’s still under development there are numerous aspects that need to be researched.

The five aspects mentioned above could help you narrow your choices by determining the desired area, overall cost, and convenience. After weighing the pros and cons of each building, do a comparison of prices for each apartment type. Whether it’s a studio apartment, 1 bedroom or 2 bedrooms, it is important to choose an apartment that is equivalent to middle-income housing.

2. Surf the internet

Promotions and discounts are middle-income worker’s best friends, especially when it comes to property hunting. There are numerous promotions that you could find on the internet, whether it’s from developers, real estate agents, or banks. Not only beneficial for buyers, but this strategy is also proven to be effective for developers.

Therefore, to get the best price for the apartment unit you want make sure to constantly monitor the relevant sites and social media where developers often announce upcoming promotions. While you’re saving to pay for the down payment, you might get an offer that is well within your purchase power.

Modern living room and kitchen in small apartment

3. Get a pre-Launch offer

Developers sometimes give additional discounts during their pre-launch. The goal is to get people to be interested in buying their apartment unit by showcasing the development of their project, and the features and facilities that will be given. Booking an apartment unit during their pre-launch phase could give you attractive promos, for example, discounts, low-interest rates, and other benefits from the developer.

However, buying property before it’s launched also has its drawbacks and risks. It is obvious that you cannot immediately occupy it, you will have to wait for the construction to complete. Moreover, the development process can always face the risk of delays, either because it is a deliberate action by a naughty developer or because it is obstructed by legality issues and so on.

4. Do not be easily tempted by the price

The low price will always be a temptation, especially if the housing costs are below the market price. As tempting as it sounds, these types of offers are one you need to be careful of. In general, developers usually put a price that is 8-15% higher than the area’s semi-gross. If the price of the unit is cheaper than that, there might be an ulterior motive such as smaller unit size, unsavory view, or any other disturbance that makes living there inconvenient.

More importantly, don’t forget to check the quality of the developer. Do a background check on the developer’s track record to see whether they are reliable or not.

Rainbow Springs CondoVillas luxury apartment complex in Summarecon Serpong, Tangerang, Indonesia. It has high values of property investment and development.

5. Preparing funds to buy an apartment

As mentioned above, preparing your funds is as important as finding the best apartment unit. Recalculate whether your salary could get you an apartment located in the area you desire. You need strict financial planning to get your dream apartment with your own savings.

The amount of the average percentage of income allocated to buy a residence depends on the amount of funds required. You also need to consider the number of your down payment in order to reduce the cost of the installment fee. Assuming the annual increase in residential costs is 15-20%, ideally, you must allocate 20 to 30 percent of your salary.

Do not forget to save extra funds to pay the monthly maintenance fee and any other unforeseen additional costs.