Owning a house is often seen as a dream that may come true, or is it something many people find difficult to achieve? Especially for Gen Z, who have many considerations and alternatives, such as house contracts, apartment rentals, boarding houses, and so on.
So, is it still worth it for Gen Z to buy a house? Moreover, for people earning minimum wage?
In fact, the unequal distribution of house ownership has become a concern for the government. As a commitment to improving the welfare of the Indonesian people, President Prabowo launched the 3 Million Houses Program to ensure every family has a decent place to live.
With this program, is Gen Z's dream of owning a house no longer just a dream? Let's discuss this further below!
With a Minimum Wage, Is It Possible to Buy a House?
Property prices, including houses, continue to rise each year, and the cost of living is also increasing, leading many to wonder: Is it really possible to buy a house on a minimum wage?
This question is understandable, especially in major cities such as Jakarta, Surabaya, and Bandung, where house prices can reach hundreds of millions to billions of rupiah. On the other hand, the average minimum wage in these cities is still between 2 and 5 million rupiah per month. At first glance, that amount seems insufficient to cover a house mortgage, especially when you still need to fulfill daily necessities.
However, this does not mean that it is impossible. Many workers earning minimum wage have successfully purchased a house after careful financial planning and utilizing government assistance programs, such as the 3 Million Houses Program.
Additionally, lifestyle plays a significant role in determining the ability to afford a house. By reducing discretionary spending, regularly setting aside savings for a down payment (DP), and choosing more affordable locations on the city outskirts, homeownership remains attainable.
So, even though owning a house on a minimum wage is challenging, it is not impossible. The key lies in financial discipline, utilizing the right financing programs, and patience in planning future steps.
With the right strategy, the dream of owning a house is no longer just a fantasy but can become a reality.
Get to Know the 3 Million Houses Program
The 3 Million Houses Program is part of President Prabowo Subianto's Asta Cita mission for social infrastructure development and equitable welfare. The primary objective of this program is to foster sharp national economic growth of up to 8%.
Additionally, this program also promotes equitable development and accelerated poverty alleviation. As an update, the current housing backlog in Indonesia remains quite high, with approximately 9 million households that do not own their own house and around 26 million households having uninhabitable houses.
To maintain quality while aligning with the financial capacity of low-income communities, the government has divided this housing program into several schemes. Some houses, such as flats and special-purpose houses, are built directly using funds from the state and regional budgets.
Meanwhile, there are also houses developed by private parties (developers), but they still receive government support in the form of various facilities, such as Housing Financing Liquidity Facility (FLPP) subsidies, Land and Building Rights Acquisition Duty (BPHTB) exemptions, and 0% VAT (PPN) facilities for subsidized houses.
It should be understood that low-income communities (MBR) are the main target of this program throughout Indonesia. Therefore, the standards for housing construction and renovation are adjusted to their income levels and needs, without neglecting the aspects of livability and comfort as the main priorities.
Financial Tips for Gen Z to Buy a House on Installment
For many of Gen Z, owning a private house often feels like a distant dream, especially amid property prices that continue to rise every year. However, if you start planning your finances now, the opportunity to buy a house on an installment plan at a young age is very likely.
One of the main advantages of Gen Z is their young age. This means that you have more time to build financial stability and take advantage of longer installment tenors.
For example, the younger you are when you apply for a mortgage, the more likely it is to be approved and the lower your monthly payments will be, as the repayment period can be extended to 15–20 years. This is an advantage that those who start in their 30s and above rarely have.
However, all of this still needs a careful financial strategy. The key lies in how you manage your finances and set priorities. It is also important to understand various housing financing programs, such as subsidized mortgages, low-interest rates, and homeownership programs for millennials and Gen Z.
For those who want to understand more about the 3 Million Houses Program and tips on owning a house for Gen Z, you can listen to the Ruang Ratih podcast by Semen Merah Putih.
Through discussions with experts and practitioners, this podcast offers a range of insights into residential properties, construction, and how the current generation interprets the meaning of “home” in line with their lifestyles and needs.
In each episode, Ratih serves as the host, guiding casual yet meaningful conversations with trusted sources from various fields.
Be sure to subscribe to the Semen Merah Putih YouTube channel and enable the notifications so you don’t miss the latest episodes.
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