Buying Property in Medan
I have always been obsessed with properties.. I love looking at the layouts, the floor plans etc.. in my younger years, my mum used to bring me along each time she went for any property viewing.. so it could be that, that I have always enjoy looking at the showflats, the miniature of the development.. understanding its direction etc..
With that, over the last several years.. I have been eyeing to buy some for investment.. and I am the type of girl that do detailed research and calculations.. and yes I once paid some US$5000 for a property investment course… and after listening to what, why, and how .. as well as what to look out for.. how to manage.. knowing the difference between residential and commercial property and its benefits… I found myself knowing too much and calculate too much which ended with me not finding any right one at all..
Then during my past December break in Bangkok.. I saw one.. of good value and one that over so many years I spent searching.. it’s the one that I knew it right away that I was gonna make money.. it sorts of put all the green ticks on my checklists..
Having seen how payments are made in Thailand… my husband and me immediately felt that we probably will not be buying any property in Indonesia till some changes to the Laws are made… let me tell you why… however, please note that this is my own personal view..
the down payment.. in Singapore.. it used to be 5% and that was it.. the 95% balance is paid upon receiving the keys.. though the laws have now changed… in Thailand, a 10% down payment is required with the payments being spread over the number of months till the unit is done .. the 90% is then made upon receiving of key.. in Indonesia?.. well 10% is required almost immediately.. and the rest of the payment began just about as soon as you signed the purchase order.. and I’ve just found out that my father-in-law bought one unit in Jakarta.. has since paid it in full some 1 year back.. and today.. the building is not even ½ done…
part of acquiring property for investment is to get some rental yield… in Medan.. there is no possible way that the rental income will ever cover the cost of the mortgage!!.. the rental here in Medan is really something to laugh about… it’s so so cheap that not just me alone but all expats seem to agree with me…
many times.. good properties are owned by the rich.. so each of them has the attitude that.. unless you are offering some crazy price to buy.. only then they will sell it to you ..else it’s like.. ‘this is the price I want to sell.. if you are happy, then buy it.. if not.. then goodbye’.. its never about being reasonable … or the realistic price..
and many times.. what you see is never what you get..
having said all of the above.. one thing that you can be quite certain about property in Indonesia is that.. most of the time.. you will get capital gain.. which I have to say that it’s was the main reason why I wanted to invest in Indonesia initially…(before the $5000 course) but now with.. read too much.. calculate too much.. listen too much.. seen too much.. Indonesia is definitely not on my list for the moment…
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medankota on April 13th 2010 in Medan Bisnis, Medan Living, Medan Property
Sofjan Mustopoh responded on 19 May 2010 at 4:54 am #
Yes it is very true.
Medan Properties are definitely not a cash flow property. It is almost impossible to get any positive cash flow from rental income. The return on investment (ROI) in rental income is abyssymal.
Everybody who own property on the best part of town are hoping for Apreciation or Capital gains in about …. 20-30 years :^) i was born and raised in Medan.
But decent investment property could still be had in Medan. last years while on visit in Medan i saw several Ruko in Jln Asia for sale for a decent price . not cheap but not crazily expensive either.
and real estate on the old part of medan seems to be put for sale tru connections. thus sometimes it did not comeup to the real estate listing. but tru the traditional broker . or the Hokkien term is Pak Kang Tau ( literally Break a hole of oportunity )
I miss Medan alot. though would not seem to be interested in moving back.
I follow your blog to catch up on Medan from USA.
Kudos !!!!!!!!!!!!!!
multatuli responded on 24 Oct 2010 at 9:25 pm #
I want to know if there are many expats (both Westerners and Asians) in Medan and where do they hang out.
Also where can one rent a landed property ie house with garden as opposed to townhouses. How much is the monthly rent say for a four bedroom house with garden in a good area.