One of the first big questions every first-time buyer faces is whether to buy a brand-new house from a developer or a secondhand home from a previous owner. Both paths have genuine appeal, and neither is universally better. What matters is understanding what each choice actually means for your money, your timeline, and your peace of mind before you sign anything.

Defining the Two Options

A new house is a unit purchased directly from a developer, whether it is already built or still under construction (known locally as an indent purchase). A secondhand house, sometimes called a rumah second, is a property that has previously been owned or occupied by someone else.

That distinction sounds straightforward, but the downstream implications touch almost every part of the buying process, from price and financing to legal checks and renovation costs. Getting clear on the difference is the foundation for everything else.

Why Buyers Choose New Houses

New houses carry several advantages that are hard to ignore, especially for buyers who want a clean slate.

  • Everything is untouched. The structure, electrical wiring, and plumbing have never been used, which reduces the risk of hidden damage on day one.
  • Developer warranties. Most reputable developers offer a warranty period covering defects, typically ranging from a few months to around a year after handover.
  • Modern design. New units tend to have more efficient floor plans and contemporary finishes that reflect current architectural trends.
  • Smoother mortgage processing. Banks generally process home loans more straightforwardly for new properties, and some units may qualify for government-subsidized programs such as FLPP through BTN, which offer lower fixed interest rates and longer tenors.
  • Developer promotions. Particularly toward the end of a sales quarter, developers often run incentives like waived mortgage fees, price discounts, or installment schemes for the down payment.

The trade-offs are real too. Indent purchases mean waiting, sometimes one to two years, before you can move in. New housing estates are also frequently located on the outskirts of the city, farther from established amenities.

Why Buyers Choose Secondhand Houses

Secondhand homes have their own compelling advantages, particularly around location and negotiating room.

  • More established locations. Secondhand properties are distributed across areas that have already grown up around schools, hospitals, markets, and daily conveniences.
  • More room to negotiate. Dealing directly with an individual seller usually allows for more flexible price discussions than the fixed price lists of a developer.
  • Move in immediately. There is no waiting period because the house already exists.
  • You can see the real neighborhood. You get to observe the actual condition of the surroundings, the density of the area, and how established the community is before committing.

The risks are also real. A secondhand house can conceal problems in its structure, roof, aging electrical installation, or drainage. Some level of renovation before moving in is often unavoidable, and those costs need to be factored honestly into your budget.

Price and Financing

On price alone, new houses from developers tend to cost more per square meter relative to comparable secondhand properties in the same area, partly because the price reflects the developer’s margin and the cost of building out estate infrastructure. Secondhand houses may appear cheaper at first glance, but a fair comparison needs to account for estimated renovation costs on top of the purchase price.

Both options can be financed through a home loan (KPR). The required down payment is governed by Bank Indonesia’s Loan-to-Value policy and varies depending on the bank and the type of program. As a general rule, the down payment requirement for a first home is lower than for subsequent purchases. Always compare offers from multiple banks before committing, since terms, rates, and fees vary considerably.

Beyond the property price itself, buyers typically need to budget for additional costs such as the land and building acquisition duty (BPHTB), certificate transfer fees, and mortgage processing charges. For new houses sold directly by developers, value-added tax may also apply. In total, the extra costs on top of the listed price can add up to several percentage points of the transaction value, depending on local regulations and the financing structure you choose. Consulting a notary or PPAT before signing is the safest way to get an accurate figure for your specific situation.

Regardless of whether you choose a new or secondhand property, the legal paperwork deserves serious attention.

For new houses, confirm that the developer holds all the required permits, including the current building approval document known as PBG (Persetujuan Bangunan Gedung), which replaced the older IMB permit in 2021. Research the developer’s track record and check whether previous projects were delivered on time and in good condition.

For secondhand houses, start with the land certificate. A Full Ownership Certificate (SHM) grants permanent and complete ownership rights and is the most widely accepted form of collateral for bank mortgages. A Building Use Rights Certificate (SHGB) has a limited term and must be renewed periodically. Make sure the name on the certificate matches the seller’s identity, and verify that the property is free of disputes or legal encumbrances. This can be confirmed through the local ATR/BPN land office.

Also check that land and building tax (PBB) payments are up to date, and request a copy of the PBG or original IMB as proof that the building was constructed with proper authorization.

Local Context in Banjarmasin and South Kalimantan

If you are searching for property in Banjarmasin or the surrounding South Kalimantan region, there are a few local factors worth keeping in mind on top of the general considerations above.

Much of the land in and around Banjarmasin sits on swampy or peat-based soil, which affects ground stability and flood risk during heavy rains. The traditional stilt house (rumah panggung) that is so characteristic of the region exists precisely as a practical adaptation to these conditions.

For new housing estates, look carefully at whether the developer has properly prepared the land through filling and compaction, and whether the drainage system is genuinely designed to handle seasonal flooding. For secondhand homes, ask the owner and neighbors directly about the flooding history of the area, and if possible, visit the property during the rainy season.

As Banjarmasin and Banjarbaru continue to grow, new developments are opening up across the region. That growth also means you need to distinguish between infrastructure that is already in place and amenities that are merely promised in a marketing brochure.

How to Decide What Is Right for You

There is no single formula, but a handful of questions can help sharpen your thinking.

  • Do you need to move in soon? If so, a well-located secondhand house is often the faster path.
  • Do you have budget set aside for renovation? If not, a new house that is ready to occupy may carry less financial surprise.
  • Is proximity to city amenities a top priority? Secondhand homes in established areas tend to win here.
  • Do you want the reassurance of an untouched building? New construction gives you that starting point.

Visit several options in both categories before deciding. Bringing along someone with construction or property experience when you do physical inspections can save you from expensive surprises later.

Closing Thoughts

The choice between a new and a secondhand house ultimately depends on your own priorities, your financial position, and your family’s specific circumstances. Either option can be the right one when the decision is made with enough information and without undue emotional pressure. Take your time, verify every aspect from legal documents to the physical condition of the building, and do not sign anything until you are genuinely confident.

If you are exploring property options in Banjarmasin and would like to talk things through, the Vorneo Property team is happy to chat on WhatsApp at no cost to you.