All Guidelines For The Young Generation To Realize The Dream To Buy A Home

Housing under construction in Thoyibah Islamic Village (Detha Arya Tifada / VOI)

Jakarta is a light that never goes out. Civilization awakens around it. We have discussed it in "About Living Away From Jakarta and Spending Life on the Street". This is one of the root causes of why housing prices are getting so expensive that it is increasingly impossible for young people to own them. The final article in VOI's signature Series. From the various problems that have been discussed, we are now looking for strategies to answer the question: "When is the Board Established?"

Clothing, food, shelter. These three are the main needs in human life. Especially the last one has become an expensive item that is difficult to reach. In fact, for the younger generation, the dream of owning a house has become increasingly impossible. KPR is one of the right solutions to pursue the dream of owning a house that costs hundreds to billions.

Without a KPR, this wish could just be a dream in broad daylight. However, unfortunately not everyone can pass KPR. It needs a good financial record and an income that meets the standard house prices proposed through the KPR scheme, of course. The 2018 Indonesian Millennial Generation Profile data could perhaps be the initial reason for building a logical reality about this condition.

In the data released by the Central Statistics Agency (BPS), the average income of the millennial generation for one month is around Rp. 2.15 million. Talking about Jakarta, for example. The logical reality of the difficulty of owning a house is increasingly exposed. The Provincial Government (Pemprov) of DKI Jakarta, through data on the Investment Potential of the Property Sector, noted that land prices have continued to increase since 2010.

This is one of the reasons why house prices continue to rise. It's tough, if you look at the potential increase in youth income. Referring to other data that is also owned by the Provincial Government (Pemprov) of DKI Jakarta, it is noted that the increase in real wages in the Capital City only touches 10 percent per year. "This imbalance makes house construction expensive in DKI Jakarta," the report said.

It's not just a matter of salary. The consumption pattern of young people is ironic. An independent survey conducted by VOI to one hundred respondents showed that 61 respondents admitted that they did not prepare savings funds to buy a house. Even so, the majority of respondents also expressed their intention to buy boards. The intention is there. However, planning and installing steps to get there is another matter.

The government has actually accommodated the dream of young people about board through the One Million Houses Program. In addition, there are also housing loans (KPR) managed by the Social Security Administration for Employment, housing savings for State Civil Servants (ASN) managed by the Public Housing Savings Management Agency (BP Tapera) to the Housing Financing Liquidity Facility (FLPP). by the Ministry of Public Works and Public Housing (PUPR).

However, these various programs are actually not sufficient to answer the long problem of housing ownership for the younger generation. To ensure the provision of cheap housing, the government must ensure the stability of land prices. Without cheap land, cheap houses will not be a patent solution. As written in the sales data of the real estate consulting firm, Cushman & Wakefield in 2016, which reveals the increase in land prices as one of the causes of high house prices in the capital.

Solution

Financial planner, Aidil Akbar Madjid agrees with the difficulty of owning a house in Jakarta. According to Aidil Akbar, an alternative that is still possible to reach is an apartment. As an illustration, the cheapest apartment prices currently range in the figure of IDR 350-400 million. If we still choose a house, we inevitably have to shift to buffer cities such as Tangerang, Bogor, Depok, or Bekasi.

"If the apartment is like that, (the price) of the house is definitely above that ... So you can still get it in Tangerang or Bekasi. But the location is almost an hour's train ride," he told VOI.

We are trying to simulate a plan to buy a house for Rp. 500 million in the Jakarta area. The way is, of course, by utilizing the KPR program. According to Aidil Akbar, to participate in the KPR program, we must at least set aside 20 to 30 percent of total income.

So, if we are going to buy a house for Rp. 500 million, it means that at least we have to prepare a down payment of Rp. 100 to Rp. 150 million. With that down payment, it means that we still have a debt of IDR 350 to IDR 400 million, which must be paid in installments per month with a nominal value of at least IDR 4 million. "If the installments are like that, it means that you have to have a minimum income of IDR 10-12 million," said Aidil.

Even so, income is not the main factor. Aidil said that millennial consumption patterns, which tend to spend money on buying experiences rather than assets, are also one of the key factors that make it difficult for millennials to have a home. This mindset seems to be important to be aligned with the dream of having a home. "Most of them use up their money for traveling, for coffee, they accumulate experience rather than assets," said Aidil.

In addition, KPR is another logical way. Not only conventional. Today, many financial institutions accommodate Islamic mortgage services. There are advantages that can be taken from the sharia scheme. In practice, it is as if an Islamic bank buys the house the consumer wants and sells it to the consumer in installments. In addition, another feature of the sharia scheme is the elimination of interest in transactions.

Simulation: Pak Amir submits a plan to purchase a house for Rp. 500 million to Bank Baik. Later, Bank Baik will buy the house, provided that Bank Baik has the right to take a profit - the amount depends on the margin - of Rp. 100 million. This means that Pak Amir must pay home payments to Bank Baik with a total tenor of Rp. 600 million. An important note in the Islamic KPR scheme, the agreement between the bank and the home buyer is done in advance.

Marketing office of Thoyibah Islamic Village in Bekasi (Detha Arya Tifada / VOI)

Beware

There are some notes that must be kept in mind when buying a house. We interviewed Junaidi Abdillah, Chairman of the Association of Indonesian Housing and Settlement Developers (APERSI). According to Junaidi, there are easy ways that can be done to identify which developers are fake and genuine.

First, by ensuring that developers can demonstrate legality, at least in the form of a Decree (SK) of the Ministry of Law and Human Rights (Kemenkum HAM) and a Trading Business License (SIUP). This method can be used as an initial step for identification.

Then, to ensure the progress of the project or not, Junaidi suggested that every buyer check the Building Construction Permit (IMB) and several other technical permits. "If the developer is fake, not all done, so nothing," said Junaidi.

"So, they are not developers, but they are con artists," said Junaidi, adding that the original developers would of course be registered with the Ministry of Public Works and Public Housing (PUPR).

To check whether a developer is genuine or not, said Junaidi, it can be done by checking the Cooperation Agreement with Banks (PKS). "So, every time you want to buy a house, what you ask is about the legality. Then, which bank is the PKS with. Because if you have entered the PKS there must be detailed data, so that's what you ask," he said.

Finally, Junaidi also reminded people not to be easily tempted by cheap prices that are far below standard. Extremely low prices are a major indication of fraud. "For example, the price of a house is Rp. 300 million, he sells Rp. 150 million. Yes, it seems impossible," said Junaidi.

"Or a subsidized house, which costs Rp160 million now, is sold for Rp.100 million. That's not possible. All developers have calculations, both in terms of land purchases. I think if it's so cheap it could be a question, why can it be that cheap."

Follow the entire Writing Series of this issue: "When Will the Board Establish?"