Overcoming Financial Hurdles: Practical Tips for Young Aspiring Homeowners


Owning a home or apartment is not just a fundamental need but also a potential future investment. However, many young people, particularly Millennials and Gen Z, find it challenging to purchase property. According to Beautynesia, the younger generation tends to prefer renting over buying.

A survey titled "Property Perspective from Gen Z" released by Jakpat and cited by CNBC Indonesia reveals that 36% of 587 Gen Z respondents prefer renting a home because they are not yet financially ready. Dani Indra Bhatara, Director of Research & Consultancy at Savills, highlighted that high property prices combined with low income levels make it difficult for young people to buy homes.

The Financial Services Authority notes that Millennials and Gen Z often do not prioritize property, instead focusing on lifestyle expenses such as clothing, food, drinks, and vacations. Accessing mortgage loans (KPR) is also challenging due to high down payments. KPR applications can be made from the age of 21 or after marriage, with a maximum age limit of 55 or 65 years when the loan is paid off. But what is the ideal age to start a mortgage?

Banking analyst Arianto Muditomo states that there is no fixed rule for the ideal age to start a mortgage, as many factors need to be considered. Irfan Syauqi Beik, Dean of the Faculty of Economics and Management at IPB University, suggests that mortgage payments should not exceed 30% of monthly income.

Here are some financial tips for young people looking to navigate the property market:

  • Prioritize Savings: Start by setting aside a portion of your income for a down payment. A good rule of thumb is to save at least 20% of your monthly earnings.
  • Budget Wisely: Make a detailed budget that includes all your expenses and stick to it. Avoid unnecessary expenditures and focus on saving.
  • Consider Government Programs: Look into government-subsidized housing programs that offer more affordable options for first-time buyers.
  • Improve Your Credit Score: A higher credit score can help you secure a lower interest rate on your mortgage. Make sure to pay your bills on time and reduce any outstanding debts.
  • Consult Financial Advisors: Seeking advice from financial experts can help you create a solid financial plan tailored to your needs and goals.
  • Plan Long-Term: Ensure that your mortgage is paid off before retirement by creating a long-term financial plan that includes your housing costs.

For families, having a home is indeed important. While there is no ideal age to start a mortgage, being prepared with a well-thought-out financial plan is crucial. With careful planning and disciplined saving, young people can overcome the challenges and achieve their dream of home ownership.

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