Rent or Buy an Apartment in Jakarta: Which Suits You?

Rent or Buy an Apartment in Jakarta: How to Decide

Whether to rent or buy an apartment in Jakarta is a question we hear often from prospective clients, and the answer is not the same for everyone. The points below should help you decide.

How long you will stay

If you plan to live in Jakarta for less than 3 years, or your workplace may still move, renting usually makes more sense. Buying comes with transaction costs such as tax, notary fees and processing fees, which only feel worthwhile if you stay long enough.

The funds you have available

Buying needs a down payment and transaction costs upfront. With a KPA (apartment loan), the rest is paid in instalments.

Renting needs rent paid in advance and a deposit, which is generally much smaller than a purchase down payment. Also work out how much emergency money you want to keep aside.

Flexibility

A tenant can move to another area when needs change, for example if the office relocates or the family grows. An owner is tied to one location, although the unit can be rented out if the owner moves.

Buying as a long-term asset

Buying means owning an asset. A unit in a location connected to shopping centres and transport, such as Casa Grande Residence at Kota Kasablanka, tends to be popular with tenants. That can give you rental income if you do not live there at some point.

Example figures from our catalogue

At Casa Grande Residence, our rental units start from around Rp 12 million per month, while units for sale start from around Rp 2.4 billion and can be bought with a KPA. These figures are from our catalogue and prices can change, so ask us to confirm current prices.

Use the KPR (mortgage) simulation on our website to see the estimated instalment for a unit you like, then compare it with the rent of a similar unit.

Next step

If you are still unsure, start by renting in the area you have in mind. Once you know the neighbourhood, the decision to buy becomes easier.

The Best Property Jakarta team can help with both: finding a rental unit now and a unit to buy later. Contact us to discuss your plans.

Frequently Asked Questions

Is it better to rent or buy in Jakarta if I stay less than 3 years?

Renting usually makes more sense, because purchase costs such as tax, notary and processing fees only feel worthwhile if you stay long enough.

What upfront money do I need to rent?

Rent paid in advance and a deposit, which is generally much smaller than a purchase down payment.

Can I pay for an apartment in instalments?

Yes, with a KPA the remainder after the down payment is paid in instalments.

Can I rent out an apartment I buy?

Yes, the unit can be rented out if you move. Units well connected to shopping centres and transport tend to be popular with tenants.

Where can I estimate mortgage instalments?

Use the KPR simulation on our website, then compare the result with the rent of a similar unit.