Owning a House Is Getting More Difficult, Renting Is an Option?

Rental Flats or Rusunawa

Indonesian people are predicted to find it increasingly difficult to have their own homes. This is due to an increase in the benchmark interest rate which affects housing interest rates. Renting is an option now?

Previously, Minister of Finance Sri Mulyani Indrawati had said that owning a house would be even more difficult.

This is due to the high price of land, and raw materials to the threat of high-interest rates which will affect the reference rate and lending rates in banks.

“To buy a house for 15 years, repayments are hard at the start, interest rates first, and the principal is behind. That’s because, with the price of the house and the current interest rate, you have to watch out for it. After all, it tends to rise with high inflation,” explained Sri Mulyani at the 2022 Securitization Summit, in Jakarta, Wednesday (6/7/2022).

“So it will be increasingly difficult for people to buy a house,” Sri Mulyani continued.

Therefore, renting is an option. Based on a report from the Central Statistics Agency (BPS), there were 9.96% of Indonesian households living in rented or leased buildings in March 2022.

According to BPS records, DKI Jakarta occupies the first position with the highest proportion of rented occupants, reaching 30.94% of the total Capital City households. Meanwhile, households that have their own house in Jakarta are only 50.67%, the lowest on the national scale.

Meanwhile, the proportion of rented occupants was the least in Central Java, namely 2.26%. Households that have their own home in this province are indeed quite high, reaching 90.25%.

The high proportion of people who rent in Jakarta, apart from the difficulty in owning a house, is also due to several factors.

Based on data obtained from Jakarta in Figures published by BPS DKI Jakarta, the total workforce in DKI Jakarta is 5.15 million people with the age group that has the most working population being the age group 30-34 years of 729,843 people.

In this case, many people outside Jakarta who come to Jakarta to try their luck, migrate to find a temporary livelihood, it could be that some of them have houses outside Jakarta, and renting/boarding is the best choice while living in Jakarta.

Regarding the difficulty of buying a house, the government will help low-income people to be able to get a house.

For example, there is an incentive to buy a house for the Government Borne Value Added Tax (PPN DTP) and the imposition of a final 1% VAT for simple and very simple houses.