Property Prices in Indonesia

[snpark]

55m2? That's about US$80k purchase price, at a place where it has a good and logical chance to increase in price.

I think you are confused? That is the size in meter squared. The price quoted was US$300,000 +/-
Not sure where you get the $80k from unless thats what the price SHOULD be? In which case yes, that would be correct, rental yield 7-10% would mean $8,000 a year - $650 a month - the 7-8jt I was referring too

 

[rabbit_39]

S

I think you are confused? That is the size in meter squared. The price quoted was US$300,000 +/-
Not sure where you get the $80k from unless thats what the price SHOULD be? In which case yes, that would be correct, rental yield 7-10% would mean $8,000 a year - $650 a month - the 7-8jt I was referring too

Should be...

 

[Anglian]

This is just an observation, I have passed this house on my way to Cinere for the past 12 years,
Ten years ago it went up for sale, I've gradually watched it literally disintegrate, last year some refurbishment was attempted, last month the house has been pulled down, all the rubble has been removed and now it's a plot of land for sale, I imagine this may be happening around Jakarta and Tangarang, not the time to sell a house or land

 

[snpark]

Seems to be the better investment here, buying the house for the land it's on then just rebuilding it to a more modern house with up to date facilities, utilities, waterproofing etc etc
You never really know what you are getting with an existing older property, far better if you have the time and money and common sense to rip it apart and start again

In turn that would be a better investment and a better return in the future

Amazes me still how some owners wont even spend a few hundred dollars between tenants to clean and paint an apartment so at least it LOOKS clean fresh new modern etc - you will easily recoup that in the first year

 

[Jaime C]

We were offered a small apartment in south Jakarta that we rented for 9 months before moving to Bandung. And by small, I mean smallllll. 32sm. It's a friend selling who is having quite serious medical problems.

While I'd buy it at the right price, it's unlikely that it would ever be a great investment, even at that price. Lets not even talk about not being able to use a microwave without the electricity breaker popping off.

 

[Smallworld]

...
Amazes me still how some owners wont even spend a few hundred dollars between tenants to clean and paint an apartment so at least it LOOKS clean fresh new modern etc - you will easily recoup that in the first year

It could be maybe this "stalemate" :

Landlords don't want to do any maintenance on the property without having a signed contract + all rent paid in advance as they are afraid all their work will go for nothing if the tenant will change his mind.

Tenants will not move in until the property is in the liveable condition as they are afraid the landlord will never, clean/paint/fix it or start to postpone after rent was paid in advance and contract signed. Orrr...... no one wants to live in a property which is under renovation painting/fixing for the first month(s).

Well someone has to make first step. I should say you meet each other in the middle. I know personally some landlords/tenants who have this verbal pre-agreement saying" if the property is clean and fixed with no ongoing earlier discussed issues, we will sign the main contract and pay rent xxxx and then move in".

The last time I heard about tenants renovating - painting landlord's flat was in UK. After my friends had renovated the entire flat in exchange for cheaper rent they were forced to move out few months (around 3-4) later on as the landlord decided to sell it. They have done all the donkey job and the landlord is getting all the applause and credit.

 

[Euc-]

It could be maybe this "stalemate" :

Landlords don't want to do any maintenance on the property without having a signed contract + all rent paid in advance as they are afraid all their work will go for nothing if the tenant will change his mind.

Tenants will not move in until the property is in the liveable condition as they are afraid the landlord will never, clean/paint/fix it or start to postpone after rent was paid in advance and contract signed. Orrr...... no one wants to live in a property which is under renovation painting/fixing for the first month(s).

Well someone has to make first step. I should say you meet each other in the middle. I know personally some landlords/tenants who have this verbal pre-agreement saying" if the property is clean and fixed with no ongoing earlier discussed issues, we will sign the main contract and pay rent xxxx and then move in".

The last time I heard about tenants renovating - painting landlord's flat was in UK. After my friends had renovated the entire flat in exchange for cheaper rent they were forced to move out few months (around 3-4) later on as the landlord decided to sell it. They have done all the donkey job and the landlord is getting all the applause and credit.

I just renewed my rental contract, there were a few things to fix (not due to my doing), and I sent them a list of those things. I paid only 50% of the yearly rental with the understanding the rest will be paid once all issues are fixed.

 

[snpark]

Yeh but even just a deep general clean and a lick of paint to freshen the place BEFORE you show prospective tenants, I mean if its empty its hardly going to get dirty again is it, or the paint scuffed

When you sell your car, you wash it first right? You dont say well ok if you buy it I will wash it - you try and sell things and show them off to their best advantage / view etc etc

Not talking full refurb etc but at least sweep up the dead cockroaches from under the fridge before you show it!

 

[snpark]

We were offered a small apartment in south Jakarta that we rented for 9 months before moving to Bandung. And by small, I mean smallllll. 32sm. It's a friend selling who is having quite serious medical problems.
.

Let me guess - advertised as a 1 bed? I have even seen 2 beds 36m2 you cant even get a single bed in the room, theres a washing machine in the toilet and the fridge is next to the tv

Better to just make it into a large (!!!) studio all open plan, remember thats 32m2 area, now deduct all the 6inches of interior concrete wall partioning and see how much you lost
But yeh, I know what you mean about investment and pricing - ironically thats your best investment, buy 5 1beds at $80,000 each not 1 x 3bed at $300,000
You would easily get and rent a 1bed for 5jt a month if you just make it bright and airy and clean and simple, amazing when you look at some blocks and the difference between 2 identical units with a clever owner and a lazy one

 

[Daniel50]

I remember an Uber driver we had who was trying to sell his property in PIK. He wanted to buy a house in Serpong. He and his wife were already renting in Serpong. He was having a difficult time selling.

I imagine if a person knew some people, and kept watch, there could be some bargains to be had.

A family member suggested buying property in BSD City/Serpong area as the tax amnesty was going to drive up the prices even further but it seems the prices have come down some post amnesty. However, the area is still probably a good long term investment as I imagine prices will go up over time, in that area.

It seems the belief is due to the large population and younger demographic there will be enough people to fill in all the ongoing developments. It just seems to me there is a limited market for all the more expensive properties. A driver in Malang said most of the people, from Malang, can not afford most of the properties being built. His belief was it was mainly developers from Surabaya driving the prices and expansions.

 

[Smallworld]

Yesterday I watched this 30 min. short and simple explanation of how economy works especially credit. I like those scenes where house icons are shrinking and disappearing hahahahah.

 

[snpark]

If it takes 30minutes to explain something then you know it must be seriously phunked up hahahahaha

 

[snpark]

Let me do it in 30 seconds:

It is a slow day in a little Greek village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher. The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit. The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. The hotel proprietor then places the €100 note back on the counter so the rich traveler will not suspect anything. At that moment the traveler comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.


No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that, Ladies and Gentlemen, is how the bailout package works.

 

[Jaime C]

Let me guess - advertised as a 1 bed? I have even seen 2 beds 36m2 you cant even get a single bed in the room, theres a washing machine in the toilet and the fridge is next to the tv

Better to just make it into a large (!!!) studio all open plan, remember thats 32m2 area, now deduct all the 6inches of interior concrete wall partioning and see how much you lost
But yeh, I know what you mean about investment and pricing - ironically thats your best investment, buy 5 1beds at $80,000 each not 1 x 3bed at $300,000
You would easily get and rent a 1bed for 5jt a month if you just make it bright and airy and clean and simple, amazing when you look at some blocks and the difference between 2 identical units with a clever owner and a lazy one

Oh, it's a 2 bedroom, but the second bedroom has no AC, and is a kids room or maids room. We used it for storage mostly. My older US daughter visited us, and slept in the room for a few days and was not a fan in the least.

 

[Daniel50]

Thanks for the video and the brief overview. I know another compound where the property would be listed for 5 to 6 milyar and a couple of houses were renting for 80 juta per year. Nobody will be recouping there investment, with rental income, with that math and one or two owned by a general sit empty. It will be interesting to see where things go.

 

[snpark]

Thanks for the video and the brief overview. I know another compound where the property would be listed for 5 to 6 milyar and a couple of houses were renting for 80 juta per year. Nobody will be recouping there investment, with rental income, with that math and one or two owned by a general sit empty. It will be interesting to see where things go.

I guess these are the people looking or hoping to flip it in 3-5 years for a few hundred thousand USD more than they paid for it

 

[mick mentawai]

To be clear many millions of Indonesians do not make minimum wage. For example, where I am people work 7 days a week with no holidays for 0.9 million a month cooking in a restaurant from morning till night. Also labourers can be found for around 60,000 to work for a day. And that's with not working another day.

And people working on daily wages around the minimum wage still prefer to to get paid a true minimum wage given the opportunity, given that they may get health insurance, pension, etc., which most people do not have.

The informal sector is vast, and I guess most Indonesians do not make minimum wage.

Of course most do not own 1 billion rupiah properties either (although those that they do own have certainly risen, I guess around 300% over the last 15 years for land without any particular prestige).

100% true

 

[mick mentawai]

It's important to remember that property prices in Indonesia vary immensely, from area to area from absolutely crazy high to absolutely dirt cheap...even in one large city the price from one area to say a village 10km out of town will often vary hugely, obviously the building is a factor but just land value in general.

Also in many areas people don't buy and sell property all that much and most people don't even have a bank account let alone a loan from a bank, they just build what they can if they have the money or maybe borrow some from relatives.

Also even in cities but more so in villages and remote areas people don't buy and sell through a realestate agent they either put up a sign or its all done by word of mouth often with the third party that may help get a buyer receiving 5% of the purchase price (from the buyer, opposed to most countries where the seller covers a fee like this).

 

[atlantis]

whose price is still very reasonable is The Enviro Apartment. the apartment that located in Cikarang has complete facilities but with a price that is not too high. very suitable for me

shill
(shĭl) Slang
n.
1. One who poses as a satisfied customer or an enthusiastic gambler to dupe bystanders into participating in aswindle.
2. One who publicly promotes another's cause, especially in an extravagant or misleading way.
v. shilled, shill·ing, shills
v.intr.
To act as a shill.
v.tr.
1. To act as a shill for (a deceitful enterprise).
2. To lure (a person) into a swindle.


ban
tr.v. banned, ban·ning, bans
1.
a. To prohibit (an action) or forbid the use of (something), especially by official decree: banned smoking intheaters; banned pesticides in parks. See Synonyms at forbid.
b. To refuse to allow (someone) to do something, go somewhere, or be a participant; exclude: a coach who was

 

[Smallworld]

AYANA FARA SAID:
whose price is still very reasonable is ....

shill
(shĭl) Slang
n.
1. One who poses as a satisfied customer or an enthusiastic gambler to dupe bystanders into participating in aswindle.
...

This is why I never replied to her PM. BTW for her monthly rental you can get a nice, spacious house in Meadow Green next to Mall Lippo Cikarang.

Anyway, for those of you who have been thinking about investing in property or even renting out in Lippo Cikarang... beware that once Meikarta is finished it will shake the property prices (incl. rentals) in the area. Now, if only I could say this in Korean and Japanese.