Jakarta –
The 11% VAT incentive policy borne by the government (VAT DTP) for house purchases under IDR 2 billion will officially be implemented from November 2023 to December 2024 (14 months).
This was greeted enthusiastically by developers who were blessed when a similar policy was implemented in 2021. Various property exhibitions were also held to attract first home buyers by taking advantage of the 11 percent free VAT policy.
According to the Director of Sales and Marketing at Harvest City, Hyronimus Yohanes, this government step is very appropriate considering the threat of an economic recession next year caused by the Israeli-Palestinian and Russian-Ukrainian wars.
“The free VAT policy was taken because the government predicts that next year the economy will feel tough. Triggers include war, plans to increase fuel and bank interest rates, elections, and an increase in the US dollar exchange rate against the Rupiah,” said Hyronimus on the sidelines of the Green Living event. Expo at Metropolitan Mall Bekasi, as stated in the official statement, Saturday (11/11/2023).
Hyronimus said that the decision to “make VAT free” in the property sector is believed to spur economic growth, because two years ago the government took the same step and succeeded in boosting property transactions and stimulating the industry and its derivative services.
“Why is property subsidized? Because property is an economic locomotive which if it moves, around 150 industries and their derivative services will also move. On the other hand, if the property sector is less enthusiastic, then related industries will also stop,” explained Hyronimus.
Developer Subsidies
Just like other developers, Hyronimus stated that his party will also take advantage of this free VAT by offering maximum promotions that benefit consumers. The reason is, during the VAT free 2 years ago (2021) Harvest City sales grew by 20 percent, and currently it is also having a significant positive impact on property sales in Harvest City, hoping to grow by around 25 percent compared to last year (2022).
“We are grateful that we have ready stock houses and have good momentum with the free VAT policy. For those with indents, we can also participate in the free VAT DTP program, because construction can be done quickly,” he concluded.
Currently, Harvest City is taking part in two property exhibitions, namely: Green Living Expo, Metropolitan Mall Bekasi taking place from 7 to 19 November 2023 and the Property Expo Party, Margo City Mall Depok, 3 -12 November 2023.
To meet the sales growth target of 25%, Harvest City launched a “powerful trick” to attract consumer interest and offered it at the two exhibition events. One of them is for ready stock houses type 30/72 (LB/LT) in the Sakura Indica Cluster, promo IDR 5 million all in, morning agreement for afternoon occupancy.
“So just pay a booking fee of IDR 5 million, we will free SHM, BPHTB and KPR fees. If the documents are complete and approved by the bank, you can immediately enter into a credit agreement and move in, there are 40 units available. Consumers don’t need to pay KPR processing fees and so on. “Otherwise, we subsidize everything. Apart from still getting 100 percent free VAT DTP,” said Hyronimus.
It doesn’t stop there, Harvest City will also subsidize one year’s interest installments of IDR 2 million. He also gave an example, for example if the installments were Rp. 2.5 million, then in the first to fifth years the interest installments would be large, while the principal debt installments would be small.
“Well, in the first year (a year) we pay the interest installments, a month it’s around IDR 2 million. So for a year we add an additional subsidy of IDR 24 million. So during that year, consumers only pay (in installments) the principal debt of IDR 500 thousand, the interest is paid by the developer “So they can sleep soundly for a year,” he added.
Apart from houses in the Sakura Indica Cluster, currently Harvest City also offers houses in Sweet Hortensia, Sweet Alba, and Ridge Crystal, as well as Hana Business Square. Prices vary from IDR 500 million to IDR 1 billion.
Watch the video “Allure Mansion, Strategic Residence on the Edge of the City”
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2023-11-11 09:07:30
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