I’ve been assessing a 2-bed duplex in Jakarta for 80 days and would appreciate a local sanity check before taking it further.
Purchase price: IDR 5,460,000,000 Expected rent: IDR 40,790,000/month Headline gross yield: about 9.0%
The building appears sound, but I’m less confident about the ongoing costs—particularly property tax and insurance. My conservative model already includes vacancy, management, routine maintenance, a larger-repair reserve and tenant turnover. I’m also testing how the cash flow holds up under different financing costs rather than relying on the gross figure.
For those familiar with Jakarta duplexes, which local expense is most commonly underestimated? If the rent is realistic, what net yield would you want after recurring costs and reserves to justify the risk at this price?
Purchase price: IDR 5,460,000,000 Expected rent: IDR 40,790,000/month Headline gross yield: about 9.0%
The building appears sound, but I’m less confident about the ongoing costs—particularly property tax and insurance. My conservative model already includes vacancy, management, routine maintenance, a larger-repair reserve and tenant turnover. I’m also testing how the cash flow holds up under different financing costs rather than relying on the gross figure.
For those familiar with Jakarta duplexes, which local expense is most commonly underestimated? If the rent is realistic, what net yield would you want after recurring costs and reserves to justify the risk at this price?