One obstacle that is quite worrying for young adults in owning a house in urban areas is the high price of land. One example is Jakarta. The estimated price of land in Jakarta itself has now reached the range of Rp. 2.5 million per meter, which is the lowest figure. While the highest can reach more than Rp 55 million per meter. The price of land in Jakarta varies according to location and connectivity between regions.
This figure illustrates that the price of land in Jakarta is not cheap. However, with the high price of land in Jakarta, it doesn’t mean you can’t have a house in urban areas. Owning a house is a primary need that needs to be met for everyone. Moreover, by owning a house at a young age, it can illustrate that you are an independent person and quite concerned with a safe and comfortable future, for yourself and your family later.
Strategies to deal with high land prices in Jakarta
Even though land prices in Jakarta are expensive, you don’t need to worry. The reason is that currently, there are enough strategies and offers in other forms for millennials to have a dream home. Here is a strategy to deal with land prices in Jakarta that you can follow as a solution to have the best housing.
1. Start calculating the maximum budget
In starting to determine the future, planning is a crucial thing that you need to pay attention to. Likewise with realizing a dream home. Knowing the price of land in Jakarta is quite high, you need to do research first about the prices of land or houses according to your target location.
If land prices in Jakarta based on your location are too high, look for references or other options. Do not be hasty in doing research in determining other options. You need to know how long it will take from your home in the future to your essential life-support destinations, such as offices and shopping centers or markets. The distance that is too far will burden your financial condition, because you need to pay more.
Therefore, prepare a maximum budget to choose the location of your dream house or land area that is your target. This budget adjustment is needed so that you don’t have to worry about outsmarting the high land prices in Jakarta.
2. Find information about KPR
Mortgage or Home Ownership Loan is one of the facilities available to assist you in overcoming the expensive land prices in Jakarta and realizing your dream dwelling. As an option that offers convenience in owning a home, you need to know about mortgages first.
One of the advantages that you can get from a mortgage is a definite ownership status. When your mortgage is approved by the bank, within a short period of time, the land or house is purchased, you can immediately carry out the process of changing the name on the certificate of ownership. In addition, by only paying an agreed down payment or down payment (DP), you will immediately be able to occupy your dream residence.
Buying a house in a credit scheme does require you to pay bills regularly. However, KPR also offers the advantage of offering a fixed amount of bills and you can adjust it according to the amount of income you receive each month. The presence of mortgages in modern times like today really helps those of you who are still of a productive age to be able to overcome the problem of land prices in Jakarta which are getting higher day by day.
3. Provide money as a down payment on a house
After you know more about the details and do the calculations regarding the mortgage that you are going to apply for, you can immediately prepare the required down payment. Basically, usually the amount of down payment for this mortgage is determined on the basis of 15% of the price of the house or land you want.
It is very natural to happen if you need a long time, for example 1 year to collect a down payment on your dream home mortgage. Therefore, you need to be disciplined in saving and setting aside money for the needs of a more beautiful future.
Again, accuracy is needed at this stage. If you take a wrong step, it will burden your financial condition later and not be a solution in dealing with land prices in Jakarta as you want.
4. Live a minimalist lifestyle
Sometimes, saving just isn’t enough to speed up the collection of the funds you need for a mortgage down payment. In overcoming the expensive price of land in Jakarta to have a dream house, you also need to make adjustments to the lifestyle you are currently living.
The rate of prices that continue to increase all the time, including the price of land in Jakarta, you can deal with by living a minimalist lifestyle. Basically, this minimalist lifestyle is defined as a lifestyle that aims to meet needs. The minimalist lifestyle is considered suitable as one of the additional ammunition in bringing dream homes into reality and overcoming the problem of increasing land prices in Jakarta. The reason is, by focusing on meeting your needs, your mindset can also be influenced to start getting used to setting aside more funds each month as an additional savings for your mortgage down payment. In fact, this method will be able to help you have your dream home faster than the planned time.
Types of mortgages that are often offered
Choosing a mortgage based on your financial condition and the most profitable offer for you is an important thing to consider. However, you also need a deeper understanding of mortgages to be able to have a better impact, especially when you are trying to overcome the problem of land prices in Jakarta which can prevent your dreams from coming true.
As additional knowledge, this mortgage or home ownership loan turns out to have two types that you can consider, namely conventional mortgages and sharia mortgages. Both certainly have their advantages and disadvantages, but they still have the same goal, which is to help you in having your dream home.
1. Conventional mortgage
In general, conventional mortgages are a home ownership loan product that is organized by the bank without any assistance or intervention from the government. The rules, conditions, and terms of this type of mortgage are the result of an agreement between the bank and the prospective creditor regarding the period and percentage of payments and interest rates.
In conventional mortgages, the interest rates offered to borrowers or creditors are divided into two. The first is the flat interest or fixed rate. This type of interest offers an interest rate that does not change, so it does not affect the amount of your monthly installments, even if bank interest rates are increasing or decreasing. Mortgages with flat interest rates can be a smart choice that reduces your anxiety to keep owning a house even though land prices in Jakarta are skyrocketing.
The second interest rate is the floating rate. What is meant by floating rate is that the interest in your mortgage application will always follow the interest rate on the market. If it goes up, of course your bill will go up. Meanwhile, if interest rates are falling, you can pay bills more efficiently than the previous month.
2. Sharia mortgages
In general, sharia mortgages are a type of financing used to purchase houses on credit. Its nature is identical to conventional mortgages. However, the difference is that sharia mortgages do not use an interest scheme but use margin calculations, profit sharing, or ujrah. The calculation system depends on the contract that you agree with the bank.
For sharia mortgages, there are three types of contracts that you need to know. The first is a murabahah contract which is a sale-purchase agreement, in which the bank will buy a house or other residential property to resell to you. The calculation of costs will be subject to the agreement of both parties.
The second contract is the musyarakah mutanaqisah contract. This contract has the meaning of rental cooperation. In this type of contract, you and the bank will share the calculation in purchasing the property. There is also a percentage distribution in the financing according to the agreement of both parties. For example, you pay 20 percent of the house price and later the bank will pay off the difference. Furthermore, periodically you are obliged to pay the difference so that the full ownership of the house is in your hands
Then there is the istishna contract. This sharia mortgage scheme, you as a customer make an agreement with the bank to build the house you want and after that you can buy the house with the calculation of construction costs and house construction services. The last is the ijarah vomitiyyah bit tamlik contract which is a lease-purchase agreement between the bank and you as a customer. For this type, you can rent a house that has been financed by the bank for a certain period of time. As the contract expires, you will have the option to sell your house to you or give it away.