House: Difference Between Subsidized and Commercial House

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A house is a basic need for everyone, apart from being a place of shelter, it is also the most promising investment asset. No wonder the need for housing continues to increase from year to year.

Having a dream house is certainly hope for everyone, the price that continues to rise every year is a problem in itself like 2 sides of a coin. On the one hand, this is very profitable for investors, but on the other hand, it is certainly quite burdensome for those with mediocre income.

Indonesia is one of the few countries in the world that has a special policy for the fulfillment of housing for its citizens. This is where the terms subsidized housing and commercial (non-subsidized) housing were born. So, what are the differences between these Commercial and Subsidized houses?

Here are 4 differences!

1. Types of Houses Offered

Subsidized housing generally has a uniform building type and is relatively small, with an average of 36 types. Meanwhile, more varied commercial housing types, ranging from small to large types, are also available.

We can see this in cluster housing or elite areas that sell houses up to type 72. Of course, this is very reasonable because non-subsidized housing targets people with upper middle income.

2. Offered Price

As part of the government’s program, subsidized housing clearly receives funding assistance from the government, therefore, subsidized housing loans (KPR) become cheaper.

In addition, applying for a subsidized housing loan is also easier because it uses a flat (fixed) interest rate. The reason is, that the target of subsidized housing is low-income people. Meanwhile, for commercial houses, the price is much more expensive, it can even reach billions of rupiah for each unit.

3. Locations Offered

The next difference that is quite obvious between subsidized and commercial houses is in terms of location. Generally, Commercial Housing has a strategic location, some of which are even in the city center. Therefore, Commercial Housing generally has very good accessibility to various public facilities.

It is different from subsidized houses which are usually located on the outskirts of the city and quite far from various public facilities.

4. In terms of renovation

The difference between subsidized and commercial houses can also be seen in the renovation. Commercial houses can be renovated at any time and in any way by the owner. In this way, the selling price of the house can also increase. Meanwhile, subsidized houses usually have to wait two years to be renovated. During the first two years, the Subsidized House elector may not change the physical form of the house in the slightest.