Generation Z And Millennials Can Buy A Home, Here Are Some Strategies

Housing (Photo: dock. Antara)

JAKARTA - The BPS census in 2020 noted that the Indonesian population is dominated by Generation Z and millennials. They are at a productive age and contribute to driving the wheels of the national economy.

Generation Z is those born in the 1997 -- 2012 range, reaching 27.94 percent of the total population or 74.9 million people.

Then as many as 25.8 percent of the others were the Millennial Generation which was born in 1981-1996, reaching as many as 69.3 million people.

The need for a house as a place to live feels even more difficult to own. Prices that continue to rise along with inflation make occupancy unbuy.

Financial planner from Lintar Financial Agus Helly said there are a number of strategies that need to be implemented by Millennials and Generation Z to have a home according to income.

Launching Antara, here are the strategies that are implemented in stages because they are interrelated.

1. Establishing the goals That Millennials and Z need to understand is to determine the goal of owning a house, namely whether it is a necessity or desire.

If understanding owning a home is a necessity, then the next step is to adjust to financial capacity so that conditions need to be realized realisticly.

"There are Millennials or Generation Z who have an income of Rp. 50 million / over / year, there are also those that adjust the regional minimum wage, meaning they must first know themselves, being realistic," said Agus.

2. Budgeting After having a determination of the purpose of owning a house, the second strategy is related to budgeting that needs to be prepared according to capacity.

For this point, Millennials and Generation Z need to be smart in managing income, namely setting aside some income after deducting several budget items for important or other main needs.

The income prepared within a certain period of time is expected to be the beginning to pay a down payment (DP) for the house.

The bigger the DP, the more credit installments can be reduced and the installment time can be shortened.

For example, in 2 years or adjusting your skills, a number of funds can be collected which are used to pay DP.

After the DP funds are collected, the next step is to determine the amount of installments per year.

3. Exploration option: buying a house or renting a third strategy that Millennials and Generation Z can take into account is an option to buy a house for their own place of residence or buy a house for rent.

The two options are closely related to the initial determination when setting the goal of owning a home.

If for a place to live, the house becomes a residence that provides comfort and peace to its residents and if it is for rent, then they get additional income as passive income outside of their monthly salary.

Agus Helly gave an example when he bought a house 15 years ago in the Jimbaran area, Badung Regency, Bali for IDR 300 million.

Then, he rented out the house with passive income that entered per year reaching up to Rp80 million.

The rental value could potentially increase to more than Rp. 100 million per year if you have swimming pool facilities.

4. Utilizing the support of the next Strategy Government is to take advantage of support from the Government, such as stimulus or subsidy disbursement for homeownership or home ownership credit (KPR).

As a generation close to and technology literate, this information is widely provided by the Government, including through banks, one of which is distributed through social media and other digital channels.

5. Collaboration Millennials and Generation Z need to consider collaboration options, for example with potential couples who also have income, for those planning to get married.

6. Improve skills If the income set aside and collaborative efforts to own a home are deemed insufficient and need additional income, then the productive generation can improve skills.

As a generation that is literate with technology, a number of options can bring in additional money, for example converting a hobby of producing rupiah, one of which is being a content creator on social media or other skills that can bring in halal income.

7. Exploration of alternative areas Millennial and Z Generation needs to map residential areas that have potential, one of which is that the value of the house can increase from year to year because it is related to investment.