Hello friends of the Grey Area podcast! We're back to discuss often gray areas regarding property. Today, our theme is interesting; it's about houses or apartments. So, in general, friends know about houses or apartments. There has been quite a debate out there; some are team house, and some are team apartment. There are many factors to consider, from investment perspectives to location, price, maintenance costs, and comfort levels. There are so many aspects to discuss. Where should we start, Bro Roy? Maybe I'll ask my question first. 

Hello, Devin! This is my partner, Fatimah. 

Okay, okay, Devin. 

Yes, as usual in previous videos, it depends on the distance. So, friends, you know what I'm looking for in a house or apartment. I just live in a house. 

Okay, so that means, Bro, you're definitely on team house. 

Alright, so when we talk about houses or apartments, there is also a lot of confusion when friends want to buy property for the first time. Usually, before separating from their parents, they need to look for a property. Now, what type of property are they looking for, a house or an apartment?

Plus, there are pros and cons. I’m sure I will explain it from the perspective of apartments first. Oh, that's fine. If we talk about accessibility, apartments essentially exist because residential homes are not always close to workplaces. This is where apartments come into play, as they tend to be located in business centers, in CBD areas, or commercial areas. Residential homes, on the other hand, are typically sought after for their privacy. However, for apartments, we always prioritize accessibility. So if our office is in a certain area, we will definitely look for an apartment nearby, usually close to the office, which is quite convenient.

Another benefit of apartments is the facilities. Okay, if we talk about prices, when we buy an apartment compared to a house, to get amenities like a gym or a swimming pool, or to have a jogging track, park, and so on, we would need to buy thousands of square meters for a house. You know how expensive property prices are in Jakarta or in major cities. So, for thousands of square meters to get all those facilities, it would definitely be too expensive. In an apartment, we still have a unit at a more affordable price, but we can have all those facilities. We have partners, we have gyms, we have swimming pools, we have jogging tracks, and so on. So that is one of the benefits of owning an apartment. Now, perhaps the most crucial point is that...

The third is that apartments, in my opinion, are much easier to rent out. So, if we buy them, it's really for investment purposes. Usually, people will look for apartments that are close to the triangle area, near office districts, and close to campuses. Why? Because it's easier to find tenants. The return on rental income, when we talk about apartments compared to land or houses, is indeed higher. The rental return is higher because, on average, if we talk about percentages, it can be around 9-11 percent per year just from your investment in apartments. The rental value is quite significant. So, if it used to be 1 million, and we receive 10%, that means we get 100 million in rental income every year. Therefore, I believe apartments are much more profitable compared to land. If I'm correct, right, bro? 

Okay, since you have explained the benefits of apartments, I represent the friends here as part of the house team, hehehe. Together with my partner, we support the idea of apartments. The house team audience has already made their choice. Okay, since I represent the house team, I’ll take note of this. 

First, the accessibility is indeed better. So, it's true that apartments have better accessibility in the city, close to campuses and other amenities.

There is a relationship between accessibility and price; the cost of land per meter will automatically be higher compared to houses that we choose in the outskirts. If the data shows that the prices are higher, that cannot be denied. The price per meter is higher because the size is smaller. As a housing team, some of our residents prefer larger spaces. If we want a larger area, we might opt for an apartment with a few bedrooms, but the price per meter cannot be ignored. The access in the city center is good, but it is expensive per meter, while houses that are more spacious have a lower price per meter, but they are located in the outskirts.

Regarding facilities, if we want to have a swimming pool, it will require a certain amount of space, but many people do not like apartments because of the maintenance fees. There is a transfer fee from the management, and there is also a sinking fund. Some may not understand the purpose of maintenance fees. For example, if I rarely use the swimming pool, why do I still have to pay?

Girls, I'm also paying, right? There are a lot of people shouting about that. If we consider the house team versus the apartment team, for example, renting in an apartment in Lecce could cost around Rp25,000 to Rp30,000, or even for high-end apartments, it could be Rp40,000 to Rp50,000 per meter. Meanwhile, renting a house ranges from Rp2,000 to Rp5,000, or up to Rp10,000 per meter. So, there is definitely a gap, which leads to the emergence of the house team versus the apartment team.

Now, regarding investments, this isn't a debate, just representing the house team. Yes, bro, when it comes to investments, I agree. Typically, the return on investment for apartments is higher, around 9-11 percent, while for houses, it's usually around three to six percent. During the pandemic, I often encountered that the return on investment or rental costs for houses were very low, between 1-3 percent. That's why young people nowadays prefer to rent houses, especially since rents are currently very cheap.

Now, if we consider buying a house on the outskirts, there’s a choice between a house on the outskirts and an apartment in the city center with established facilities. A house on the outskirts may have a smaller return on investment, but it has a greater chance for capital gain, bro, because of the potential growth in value.

It hasn't been established yet; there is still development of features. In a few years, there could be a mall, a school, or a toll road. This means that the capital gain will increase significantly, much higher than that of apartments in the city center. If we look back to 2005-2006, houses in Alam Sutera were priced between 180-250 million. There were also apartments in downtown Jakarta at similar prices. But if we compare that to now, the 180-250 million that could have been used to buy a house has multiplied tenfold or even more. Houses that were once valued at 1.5 to 2 million are now worth significantly more. However, if you bought an apartment in downtown Jakarta, it might have doubled or tripled in value, but it hasn't reached ten times. 

So, regarding investment, it's a bit of a mixed bag. If we look at apartments, they might appreciate at a rate of 7-7.5 times. This is because, fundamentally, with a house, we are acquiring land. If we track back 10 to 15 years, in Indonesia, land prices have not decreased; they have consistently appreciated. There’s no situation where the price has gone down significantly over such a period.

Weakness will always rise, and then there are buildings that may get older and older, but it adds up. However, in terms of heating, we also experience heat, but we often take it easy for the certification. It is indeed true that for capital gain, houses are much more attractive, but for investment money, it is parliament. But it goes back to the issue of buyers; the first buyer of property, Royal Bali property, is better off buying an apartment or a house. It goes back to my opinion about maintenance, as Yohanes mentioned earlier. Yes, the maintenance of an apartment is certainly much higher than that of a house. Why? Because of the lift, gym facilities, swimming pool, jogging track, corridor lights, and so on, which all require maintenance. 

If we talk about houses, if the house is small, okay, but if the house is like a mansion with its own gym, its own swimming pool, and maybe even a private lake, the maintenance costs are also high. It means that for someone to clean the swimming pool, change the water, and service the gym, the costs will be higher. However, if we compare it with houses that do not have such facilities, they will definitely be much cheaper. Generally, apartments are indeed more expensive because they come with full facilities. So, if we compare it with houses...

In the past, facilities might have been much cheaper, Parman, because they were often okay. If torment is only paid for by the person under it, then yes, there are indeed dilemmas and polemics arising lately. It feels more frightening to live in an apartment during a pandemic, especially with shared elevators and lobbies. However, it is indeed better to have a house during such times, as it offers more safety and privacy. But when there isn't a pandemic, humans are social beings who feel happier living in a place where they can meet others. We can chat with people in the elevator and lobby, greet each other, and so on. So yes, during a pandemic, that aspect is negative, but in normal conditions, it is a positive thing. Therefore, I still believe that for a first purchase, it is better to choose Parman. It is better because when friends buy an apartment, they will first look for one that is close to campus or their workplace. Then, if, let’s say, they rarely stay there, finding tenants becomes much easier.

Talking about investment, going back to what I mentioned earlier, renting an apartment is definitely much easier compared to renting a house. This is because, when friends buy an apartment, the decision-making process is usually quicker than for a house. We need to consider the paperwork and the surrounding location for a house, but with an apartment, once you have enough units, it’s all set. So, it’s indeed easier to rent out if one day friends don’t live there anymore. 

However, for a house, it’s more suitable for the long term. For example, if everything is settled and you want to stay long-term, you wouldn’t want to move frequently. In that case, the choice leans more towards a house. Typically, houses are rarely rented out short-term. Once you buy a house, you might use it for about 20, 30, or even 40 years. If you move, it’s usually every five years or so. 

So, there’s a significant difference when we’re more settled; houses offer more stability. To obtain the facilities you need, it does require a larger investment. That’s true for houses. Therefore, the return on investment is that you only need to pay maintenance fees, which can be quite substantial. If we have the same facilities in a house, the initial investment is higher for the land, and maintaining amenities like a swimming pool and gym also comes with its costs.

Regarding the IP that we pay to the neighborhood association, that's true, but there's another aspect. Many of my friends, whose hobby is gardening, also have pets. This can be a limitation in apartments. What’s the solution? If we talk about pets like cats and dogs, it can be quite restricted. However, having fish is generally not a problem. There are trendy apartments that allow us to keep pets, while others do not permit it to ensure the comfort of all residents. So, we really need to check if the apartment is pet-friendly or not. In Indonesia, there aren't too many options that allow pets, especially in apartments; they tend to be more suitable for houses.

But again, in my opinion, both apartments and houses are important to own. For first-time buyers, apartments can be a more affordable option, allowing everyone to have an asset. If I were to choose, I would go for an apartment first while we work on building our businesses. Once we are more stable financially, we can start searching for a house.

Okay, because for the long term, it's better to have what we already bought at the first purchase. It can serve as an investment. When we move to this first apartment, it can be rented out; it can become an investment instrument. We can have two assets: the house and the apartment. If we buy a house first, it's rare that we will look for an apartment again. So, we buy the apartment first. When things are more relaxed and we have a family, we will start searching for a house that fits our budget. The apartment we live in can be turned into an investment. In my opinion, that seems more suitable. 

According to the team, the apartment can be rented out while we look for a house. Yes, there are indeed issues with apartments, such as whether they are pet-friendly or suitable for pets, and it’s rare to find them. That’s why, on Instagram, we can create content about apartments that aren’t aesthetically pleasing but have great architecture. We can promote it on streaming.id. 

Now, to the last question: Earlier, Bro Ronald mentioned that the first property should be an apartment tower, then move to a house. But there are also those who want their first property to be a house in the suburbs. That’s fine, as long as it’s affordable. Their thinking is that they will buy a house, and if they have the means later, they can upgrade.

Total renovation or major renovation of the house is being made into a second floor and a third floor. The back security is either closed off or turned into a pool, or if there is a large garden, it will be elevated. In short, if it’s an apartment, it might not be possible; it could be risky. Perhaps it could be allowed by the developer, but the design should remain royal. If the construction is not solid, it could collapse. In essence, a major renovation in an apartment is difficult. 

When we buy an apartment, we usually choose a layout that suits our desires, and we check the construction beforehand. For example, if we want to break through to an adjacent unit, we need to consult the contractor to see if it is feasible without compromising the structure. Sometimes it can be done, like creating a doorway, but certain modifications are definitely not possible. 

The ideal situation when discussing major renovations is that apartments are generally designed to be compact. People usually buy them for transit purposes; they work and return home to rest, engage in small work, or gather with family.

Resting, the next day we work again. But if it's a house, maybe it can be more flexible, meaning it can indeed be renovated. We can raise it to two or three stories. This is just a note for friends: when you search for a house or buy one, you also need to check the building coverage ratio (KDB) and the floor area ratio (KLB). It’s essential to know the base of the building and the total building area. Perhaps in the next season, we will discuss this in detail, but the point is that KDB and KLB are to determine whether this house can actually be expanded or not. There are some areas where if a house is already one story, it cannot be raised to two stories. 

So, everything goes back to the regulations of each region. In my opinion, the conclusion is that whatever you want to buy, whether it's a house or an apartment, it’s a good investment. It’s called an asset because it is a fixed asset that we can use and live in. This means that if on paper the price goes up, but if you want to sell and there are no buyers, you can still enjoy that asset. We can live in that apartment or that house until the price increases. So, we are sleeping in an asset whose price is always rising. Okay, when will we meet with the opponent? When will we meet?

So, the new buyers are called investors. Do you want to buy an apartment first, or do you want to buy a house first? It's okay, as long as you don't end up buying nothing at all. Hehehe. Yes, right? Okay, okay, I agree with you. It turns out it's not that easy. If we want to do a major renovation at home, we also need to check everything. Even the foundation, right? Suddenly, we want to build something that will accommodate the family, and in the end, our renovation leads us to buy another apartment or house. That's why it's really important to be thorough. So, it seems like we have covered quite a bit today. I hope our friends at home have benefited from listening to us, me and Ronald. For those who are still confused about whether to buy an apartment or a house, well, we've already discussed it. The answer depends on you, in accordance with your budget and your comfort with the location. We hope that through our sharing, you can understand the pros and cons of apartments versus houses. If you find our series helpful, please like to support our channel, don’t forget to subscribe, and feel free to comment below about what we should discuss next. That's all, right? Yes, bro, that’s it!

Thank you, bro. Now, Levine, let's move on to discuss something even more exciting: Aurelia, the creator. Okay, so that's done.

PENYELESAIAN DEBAT RUMAH VS APARTEMEN | GREY AREA PODCAST EP04

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