Why I Bought My First House Cash

My reasons on why buying cash my house, why you should to, and how

Transcript

1. Why I Bought My First House Cash And why you should to.. 🤫 Mex Engagement •
2. at Grab Hello I’m Alif Senior Software Engineer, Mobile linkedin.com/in/muhammad-alif-akbar Software House → E-Commerce →
3. Table of Contents Financing Option Why Cash Selecting Property How To Cash
4. Selecting Property
5. Purchasing Goal Why someone buy a house source: indiatimes.com
6. Purchasing Goal Why someone buy their first house *Not actual survey, only for artistic purpose 8 of 10 people Buy a home/living place
7. DEPEND ON THE GOALS, YOU MIGHT HAVE DIFFERENT CONSIDERATION OF SELECTING A HOUSE. “ ”
8. source: indiatimes.com Factor that homebuyers consider Also affect the home price 64% Size / Living Space 75.4% Price 57% Proximity to school / work 44.3% Amenities like gym, mall, etc 21.9% Scenic View
9. Exclusive for Indonesian 😘󰏙 Also affect the home price *Not actual survey, only for artistic purpose #1 Access to Clean Water, Electricity, and 4G Internet #2 Not in Flood Frequent Area #3 Free of Begal Area
10. Financing Option
11. How to actually buy? These are the norms in society Mortgage (Fixed Rate) Mortgage (Adjustable Rate) Cash
12. https://www.mortgagecalculator.org/calcs/fixed-vs-arm.php
16. Why Cash
17. Not Bad :) Naive Calculation How we naively think how mortgage works 5% Interest Rate Find Loan with loan Rp 300M Rp 315M 1.75M / mon 15 year
18. Not Bad :) Naive Calculation How we naively think how mortgage works 5% Interest Rate Rp 315M 1.75M / mon 15 year Find Loan with loan Rp 300M
19. First, it’s not interest on overall, but yearly 5% Interest Rate (Yearly) ? Find Loan with loan Rp 300M How It Really Calculated
20. Banks Get Their Money First Any type of mortgage makes you pay debt upfront – Flat Interest Payment Time Principal Interest
21. Banks Get Their Money First Any type of mortgage makes you pay debt upfront – Effective Interest Payment Time Principal Interest
22. Banks Get Their Money First Any type of mortgage makes you pay debt upfront – Annuity Interest Payment Time Principal Interest
23. How It Really Calculated (Simplified Annuity) Second, it’s a rate on your debt (5% / 12 month = 0.4%) Mon Debt Interest (0.4%) Payment Principal 1 300.000.000 1.200.000 1.750.000 550.000 2 299.450.000 1.197.800 1.750.000 552.200 3 298.897.800 1.195.591 1.750.000 554.409
24. How It Really Calculated (Simplified Annuity) Second, it’s a rate on your debt (5% / 12 month = 0.4%) Mon Debt Interest (0.4%) Payment Principal 288 5.107.379 20.430 1.750.000 1.729.570 289 3.377.808 13.511 1.750.000 1.736.489 290 1.641.319 6.565 1.647.885 1.641.319 24Y Rp207,397,885 Rp507,397,885 Rp300,000,000
25. First, it’s not interest on overall, but yearly 5% Interest Rate (Yearly) ? Find Loan with loan Rp 300M How It Really Calculated
26. First, it’s not interest on overall, but yearly 5% Interest Rate (Yearly) Find Loan with loan Rp 300M How It Really Calculated Rp 507M 1.75M / mon 24 year ↑69%
27. SOME MIGHT PREFER MORTGAGE, DUE TO, IT BREAK DOWN COST TO SMALLER SIZE, SO THEY COULD INVEST MONEY TO OTHER HIGHER RETURN THING “ ”
28. How To Cash
29. Save More - Higher Income, Same Spending - Same Income, Less Spending - Same Income, Less Tax*
30. Invest More - Buy higher return assets - Hedge fund to against inflation (buy gold) - Donate all money to charity*
31. https://www.bni.co.id/emerald/produk/kalkulatorinvestasi
32. Mixed Approach - Buy affordable one, While keep saving - Sold, when next target is affordable - Ask your parent to buy it as wedding gift*
33. Buying a property is like getting married. You have to stay logical (not emotional), full of considerations and well planned. Fixed rate mortgage tends to be cheaper overall but might seems more expensive at first. Paying cash can save you money and better on your mental health 😉 There is no best options. Everything is actually depends on specific individual needs Key Takeaways
34. Muhammad Alif Akbar Mar 20, 2023 | MEX Engagement • KSS Vol. 1