Consider the following options for my IDR 200 million.
Buying a house 🔗
- A decent home in Yogyakarta costs around 700,000,000.
- Using the BTN rate, assuming an 8-year mortgage tenor, 6.75% fixed interest for 2 years, and 13% floating interest for 6 years, the monthly installments would be 5,864,026 for the first two years and 7,495,300 for the next six years.
- Taking the weighted average of the monthly installments, the result is 7,291,391.
Renting a home and investing the money 🔗
Investing 🔗
- If I invest the 200 million at a 15% yearly return, I would have 611,804,573 in eight years.
- Assuming a 6% housing inflation rate, the house price would be 1,115,693,652.
- To afford this, I would need to save 503,889,080, which translates to a monthly savings target of 3,059,030.
Reting 🔗
- Assuming a current monthly rent is 2,000,000 and a 30% monthly rate increase after four years, I would have an average monthly rent of 2,300,000 over eight years.
- Adding the monthly savings target to the rent price, my monthly expenses would be 3,059,030 + 2,300,000 = 5,359,030.
Conclusion 🔗
In conclusion, assuming a 6% housing inflation rate, 15% yearly return on investment, 6.75% fixed interest for 2 years, and 13% floating interest for 6 years, my monthly expenses would be 7,291,391 for a mortgage, 5,359,030 for renting and saving towards a future home purchase.