The broker presents this as a straightforward 4.0% gross-yield purchase, and I’m hesitant because that figure leaves too much out. The property is a 2-bed Jakarta townhouse priced at IDR 23,550,000,000, with expected monthly rent of IDR 78,810,000.
I have reduced the projected income for vacant periods and management, then added routine upkeep and a separate allowance for a major repair. The structure appears sound, but property tax could still shift the result materially. Insurance, tenant changes and borrowing costs also need to be tested rather than treated as minor extras.
For anyone familiar with Jakarta rentals, which owner expense is commonly understated? I’d also be interested in the net yield you would want after realistic operating deductions but before financing. At present the cash flow looks too close to the line for an easy decision.
I have reduced the projected income for vacant periods and management, then added routine upkeep and a separate allowance for a major repair. The structure appears sound, but property tax could still shift the result materially. Insurance, tenant changes and borrowing costs also need to be tested rather than treated as minor extras.
For anyone familiar with Jakarta rentals, which owner expense is commonly understated? I’d also be interested in the net yield you would want after realistic operating deductions but before financing. At present the cash flow looks too close to the line for an easy decision.