What Does a $125,000 Property Actually Return in Medan?
A 3-bedroom house. Every real cost laid out. The year you get all your money back — and what you walk away with.
The Property
Step 1: What You Actually Pay on Day One
Indonesia has clear, fixed transaction taxes. Below is every cost a foreign buyer faces when purchasing through a PT PMA legal structure.
| Cost Item | Rate | Amount (USD) |
|---|---|---|
| Purchase price | — | $125,000 |
| BPHTB — Acquisition Duty | 5% of price | $6,250 |
| PPh — Seller Income Tax | 2.5% (typically passed to buyer) | $3,125 |
| Notary / PPAT deed fees | ~1% | $1,250 |
| Lawyer fees | Fixed | $1,500 |
| PT PMA legal structure setup | Fixed (one-time) | $2,000 |
| Agency fee | 2% | $2,500 |
| TOTAL BUYING COSTS | $16,625 | |
| TOTAL CASH INVESTED | $141,625 | |
Costs in USD at approx. IDR 15,800. The 100% VAT exemption on new residential property (extended to Dec 2027) can further reduce costs on new builds.
Step 2: What the Property Earns Each Year
A 3-bedroom house in a well-connected Medan district currently achieves $650–$750/month. We model $700/month gross.
Step 3: How Break-Even Actually Works
Break-even is the point where, if you sold the property, your profit on the sale plus all the rent you have collected along the way together equals your total cash invested of $141,625. At that point you have got all your money back and anything beyond is pure profit.
The Timeline to Break-Even
Capital grows at 5% p.a. Rent grows at 3% p.a.
Cumulative net rent: $33,450 — Combined: $67,985 (still $73,640 to go)
Cumulative net rent: $56,027 — Combined: $115,555 (still $26,070 to go)
Cumulative net rent: $64,009 — Combined: $132,763 (still $8,862 to go)
Cumulative net rent: $72,230 — Combined: $150,842
Cumulative net rent: $117,179 — Combined: $252,045 (+$110,420 above all costs)
Year-by-Year Breakdown — All Figures USD
| Year | Property Value | Capital Gain | Net Rent (yr) | Cumul. Net Rent | Gain + Rent | vs $141,625 |
|---|---|---|---|---|---|---|
| Day 1 | $125,000 | — | — | — | — | -$141,625 |
| Year 1 | $131,250 | $6,250 | $6,300 | $6,300 | $12,550 | -$129,075 |
| Year 2 | $137,813 | $12,813 | $6,489 | $12,789 | $25,602 | -$116,023 |
| Year 3 | $144,703 | $19,703 | $6,684 | $19,473 | $39,176 | -$102,449 |
| Year 5 | $159,535 | $34,535 | $7,092 | $33,450 | $67,985 | -$73,640 |
| Year 7 | $175,628 | $50,628 | $7,524 | $48,278 | $98,906 | -$42,719 |
| Year 8 | $184,510 | $59,510 | $7,749 | $56,027 | $115,537 | -$26,088 |
| Year 9 | $193,735 | $68,735 | $7,982 | $64,009 | $132,744 | -$8,881 |
| Year 10 ✓ | $203,612 | $78,612 | $8,221 | $72,230 | $150,842 | +$9,217 |
| Year 12 | $224,483 | $99,483 | $8,722 | $89,420 | $188,903 | +$47,278 |
| Year 15 | $259,866 | $134,866 | $9,531 | $117,179 | $252,045 | +$110,420 |
5% p.a. capital growth | 3% p.a. rent growth | Net rent after PPh tax, management and maintenance. "Gain + Rent" is what you walk away with if you sell at that year.
Key Assumptions
The Bottom Line
Ready to talk through a specific property or run your own numbers?
Speak to Our TeamTry the ROI Calculator