Be Careful when Buying a House

A house is an essential need. At the end of the day, people hope to be anchored to their homes. Unfortunately, not everyone has this luxury.

KOMPAS/TOTOK WIJAYANTO (TOK)

Residential landscape developed by Sinar Mas Land in BSD City, Tangerang, Banten, Thursday (26/1/2023). Sinar Mas Land launched a 'smart move' program to attract consumers' interest.

There are still too many people who do not own a home in this country. In 2021, there were 12.7 million households that did not own a home. Every year, there are 680,000 more families who can only hope to own a home.

Where do they live then? Some still live in their parents’ house. In Indonesia, it has become increasingly common for two to three generations to live under one roof, which is also the case in some developed countries due to the global economic slowdown.

If you have to go abroad, there is no other option but to rent a house or apartment. Every month or year, people set aside their earnings to rent properties they will never own. Many families find it difficult to save up for a down payment to purchase a house.

Also read:

> Waiting for the Effectiveness of Regulations for the Next Five Years

> Middle-class Consumers Vulnerable

With that in mind, it was heartbreaking to read Kompas’ report from Tuesday to Thursday (24-26/1/2023) on stalled housing projects. People’s dreams and struggles to live in their own homes are at a standstill.

Moreover, consumers who have bought properties ranging from Rp 200 million (US$13,365) to Rp 1 billion are the ones facing these stalled housing projects. Meaning, those affected are generally consumers and not investors. The houses that were bought were mostly these people’s first homes.

KOMPAS/AGUS SUSANTO

Motorcyclists cross a stalled residence in Satria Jaya Village, Tambun Selatan District, Bekasi Regency, West Java, Thursday (5/11/2020).

This has not just happened to a handful of people either. The National Consumer Protection Agency stated that most consumer complaints were related to housing issues. From 2017 to early January 2023, there were 3,034 cases of housing complaints. The number of housing consumers who have suffered from this misfortune have doubled according to reports to the institution.

In terms of regulations, there are several in place that intend to protect consumers. Last year, the government also issued Government Regulation (PP) No. 12/2021 concerning the implementation of housing and residential areas.

Also read:

> Tempted by the Sweet Promises of an Apartment

> Millennial Generation’s Housing Strategy

But besides the fact that there are more comprehensive regulations in place for consumer protection, note that there are also 1,001 loopholes that can harm consumers. A brilliant lawyer once explained to Kompas the practice of legal acrobatics, and how it can become increasingly difficult for investors to get the apartment units they had paid for. If even a lawyer needed to point this out, what about the people who are not well-versed in the law?

In this example, consumers have to be extremely attentive. They must be cautious when buying a house. Avoid purchasing an unbuilt house as much as possible, or at least do so with caution.

Buying a property that is already constructed, or within a constructed environment, can be 20-30 percent times more expensive. Checking its legality is also not easy. However, overspending is still far better than losing all of your money to stalled projects.

This article was translated by Kesya Adhalia.