A house is a basic human need that supports various daily activities. Due to the high cost, it is important that you research and compare options before deciding to buy to get the best price.
The price of a single-family house varies widely and is determined by various factors such as location, floor area, house design, and government subsidies. To avoid making the wrong choice, learn about the differences between subsidized and commercial houses in the following article!
Differences Between Subsidized and Commercial Houses
You may have often heard that in Indonesia, there is a program called subsidized housing. The government, through the Ministry of Public Works and Housing (PUPR), initiated this program to provide affordable housing.
Not all Indonesians are eligible to purchase subsidized housing; rather, it is targeted at low-income individuals who have never owned a house before.
Subsidized houses usually have a distinctive feature: low monthly installments or a discount of up to IDR 4 million, and in some cases, as much as IDR 32 million, at the time of purchase.
On the other hand, there are also commercial houses or residences developed by the private sector to make a profit (commercial). Since there is no subsidy, the price of commercial houses will naturally be higher than that of subsidized houses.
Furthermore, here are some differences between subsidized and commercial housing based on various factors:
1. Price
The most significant difference between subsidized and commercial housing is price. There is clearly a difference between the price of standard houses built privately and subsidized housing, which receives a price discount from the government.
In addition to the lower house prices due to government subsidies, the mortgage interest rates are also low (typically 5%). This makes subsidized housing an easily accessible option for low-income individuals.
Conversely, commercial housing is built to generate profit and receives no government subsidies, so its prices are higher. Mortgage interest rates generally depend on the policies of the chosen bank.
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2. Facility
Another difference between subsidized and commercial housing is the facilities they provide. Much like standard housing complexes, subsidized housing typically offers only basic facilities.
This is because the focus of subsidized housing is to provide affordable housing. Common facilities in subsidized housing include road access, clean water, electricity, and shared garden areas.
On the other hand, commercial housing has more complete and attractive facilities. Examples include shared playgrounds, 24-hour security, fitness centers, sports facilities, and even swimming pools.
Since the primary goal is to make a profit, commercial housing offers attractive and modern facilities.
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3. Building Quality
There is a saying that “you get what you pay for,” meaning that if you pay a high price for something, you will get better quality in return. The same applies to buying a house.
Subsidized housing offers attractive prices, but you need to consider various aspects before deciding to buy. Subsidized housing is typically built based on government-standard specifications.
Standard construction quality helps the government create housing at more affordable prices.
Meanwhile, the construction quality of commercial houses can be better and far surpass that of subsidized housing. Commercial houses usually offer better quality materials, more modern designs, and neater finishes.
The design concept of commercial houses is usually tailored specifically with a greater focus on aesthetics to attract more potential buyers.
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4. Design
Perhaps the most obvious difference between subsidized and commercial housing is the design. Almost all subsidized houses feature a simple, standardized design, including a layout with two bedrooms, a living room, a kitchen, and one bathroom.
A simple design can keep construction costs down, making the final product more affordable and accessible. In contrast, commercial houses feature a slightly more cutting-edge design concept.
Commercial houses are indeed built to feature attractive designs that keep up with changing trends. They typically prioritize comfort and exclusivity to attract buyers.
Nowadays, there are many commercial houses with unique designs, such as a mini garden, a modern living room, a spacious garage, multiple floors, and dedicated recreational areas like a swimming pool or a mini gym.
5. Location
Whether building a house or buying a ready-made one, the location is a crucial factor that requires careful consideration.
The house's location will facilitate daily activities such as dropping children off at school, shopping at supermarkets, or commuting to work.
A house's location significantly determines its comfort, ease of access, and future investment value.
Since subsidized housing is affordable, it is typically built in suburban areas where land costs remain reasonable. Consequently, the distance to the city center will be slightly longer.
Unlike commercial houses, the location of commercial-type houses is a major consideration. These houses are usually situated in strategic locations in the city center and close to public facilities such as schools, malls, hospitals, and office districts. This location makes commercial houses significantly more expensive.
That concludes the detailed explanation of the differences between subsidized and commercial houses. Have you decided which type to choose?
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