Property Investment: How to Easily Buy a Shophouse with Investment Mortgage in Jakarta
Property Investment: How to Easily Buy a Shophouse with Investment Mortgage in Jakarta

Property Investment: How to Easily Buy a Shophouse with Investment Mortgage in Jakarta

Owning a shophouse in Indonesia presents a golden opportunity to build a stable and profitable business. The dual functionality of a shophouse as both a residence and a shop makes its investment value one of the most stable in the property market after housing.

From the beginning of the year to September 2023, there has been an increase in active shophouses of up to 40.91%. Over 300 businesses had soft/grand openings in Kota Gading Serpong between August and October 2023. In Jabodetabek, shophouse prices have increased by an average of 15% per year. This demonstrates that shophouses have high investment value and are resilient to economic fluctuations.

What is a Shophouse?

A shophouse is a combination of "shop" and "house," a building that serves as both a residence and a business establishment. Typically, a shophouse has two floors, with the ground floor used for commercial purposes and the upper floor as a living space.

This unique property type offers an ideal solution for individuals seeking to integrate their business and personal lives. By owning a shophouse, you can enjoy the convenience of living close to your business, eliminating the need for commuting and reducing associated costs. Additionally, you can benefit from the flexibility of overseeing your business operations directly from your home.

Key Characteristics of Shophouses

Shophouses are typically multi-story buildings, ranging from two to three floors in height. The ground floor is designed for commercial purposes, while the upper floors can be used as residential space. Notably, most shophouses offer direct access to main roads, facilitating easy access for both customers and residents.

Types of Shophouses

Shophouses can be categorized based on their location, such as those in elite areas, commercial areas, and residential estates. They can also be classified based on their building size, such as standard shophouses (20-40 square meters), large shophouses (40-100 square meters), and super large shophouses (over 100 square meters).

It is important to understand the different types of shophouses available in the market before making a selection.

Shophouses Based on Number of Floors:

  1. 1 Floor: Suitable for small businesses that do not require a lot of space, such as grocery stores, pharmacies, or salons.
  2. 2 Floors: Ideal for businesses that require more space, such as cafes, restaurants, or boutiques. The first floor can be used for the commercial area, while the second floor can be used as a residence or office.
  3. 3 Floors: Suitable for businesses that require a large amount of space, such as showrooms, clinics, or corporate offices.

Shophouses Based on Location:

  1. City Center: Offers easy access and high foot traffic, ideal for businesses that require high visibility, such as restaurants, cafes, or fashion stores.
  2. Residential Area: Has a clear target market, namely the residents of the housing complex, suitable for businesses such as grocery stores, laundries, or clinics.
  3. Industrial Area: Suitable for businesses related to industry, such as distributors, workshops, or warehouses.

Based on The Types:

  1. Standard: Has a standard design and is usually built with the same size.
  2. Shophouse: Has a modern and more aesthetic design, usually located in elite areas.
  3. Corner: Located on the corner of a street and has two frontages, resulting in higher visibility.


  1. Small: Has a building area of less than 100 square meters, suitable for small businesses.
  2. Medium: Has a building area between 100 square meters and 200 square meters, suitable for medium-sized businesses.
  3. Large: Has a building area of more than 200 square meters, suitable for large businesses.

Choosing the right type of shophouse is crucial for the success of your business. Make sure to consider factors such as the type of business, space requirements, location, budget, and target market before deciding to purchase a shophouse.

Advantages of Shophouses Compared to Other Retail Buildings

Shophouses offer several advantages compared to other retail buildings, including:

  • Multifunctionality: Shophouses can be used for a variety of businesses, such as shops, restaurants, offices, and clinics.
  • Strategic Location: Shophouses are generally located in busy and easily accessible areas, increasing the chances of business success.
  • High Investment Value: Shophouse prices tend to be stable and continue to increase in the long term.
  • Passive Income Potential: Shophouses can be rented out to others, generating passive income for the owner.

Can You Apply for a Mortgage for a Shophouse?

Yes, you can apply for a mortgage to buy a shophouse. Buy To Let is a type of mortgage specifically designed for the purchase of investment properties, including shophouses.

Investment Mortgage is an abbreviation for Kredit Pemilikan Rumah Investasi (Indonesian for "Investment Home Ownership Credit"). It is a credit product from banks that allows you to buy property for investment purposes, not for your own occupation.

How Does an Investment Mortgage Work?

Basically, an investment mortgage works similarly to a regular mortgage. You apply for a loan from a bank to buy a property, and then repay the loan plus interest periodically.

Requirements for Applying for a Shophouse Mortgage

1. Age and Income

  • Minimum age of 21 years and maximum age of 55 years when the credit is paid off.
  • Have a fixed income that is sufficient to pay the mortgage instalments.

2. Personal Documents

  • Copy of ID card and family card
  • Copy of NPWP
  • Pay slip or income statement
  • Bank statement or proof of savings

3. Shophouse Documents

  • Photocopy of shophouse certificate
  • IMB (Building Permit)
  • Notice of Tax Payable Land and Building Tax (SPPT PBB)

4. Down Payment: Pay a down payment of at least 10% of the shophouse price.

5. Insurance: Life insurance and fire insurance for the shophouse.

Tips for Applying for a Shophouse Mortgage:

  • Compare mortgage interest rates at several banks.
  • Calculate your financial ability before applying for a mortgage.
  • Prepare complete and neat documents.
  • Use the services of a trusted property agent to help with the shophouse purchase process.

Benefits of Buying a Shophouse with a Mortgage

  • You can own a shophouse without having to spend all the money upfront.
  • Mortgage instalments can be a deduction from taxable income.
  • Owning a shophouse can increase the value of your assets.

How to Apply for an Investment Mortgage to Buy a Shophouse?

Let's see 5 ways to buy a shophouse that you should understand!

  1. Choose a bank that offers investment mortgages.
  2. Meet the investment mortgage requirements.
  3. Apply for an investment mortgage with the bank of your choice.
  4. Wait for the approval process from the bank.
  5. If the mortgage is approved, you can sign the credit agreement and disburse the mortgage funds.

FAQs About Investment Property Mortgage (KPR Investasi)

How long is the tenor for KPR Investasi?

The tenor for KPR Investasi generally ranges from 10 to 20 years.

What is the interest rate for KPR Investasi?

The interest rate for KPR Investasi varies depending on the bank and its policies.

What are the costs associated with KPR Investasi?

Fees associated with an investment mortgage include commission fees, administrative fees, appraisal fees, and notary fees.

Looking for a strategically located shop house in Gading Serpong? Check out the article of Paramount Land: The Hudson Shopping Arcade here.

Applying to Buy a Shop House with an Investment Mortgage with Lets Move Group

Lets Move Group is a trusted property consulting company that can help you with the process of applying for an investment mortgage. We have a team of experienced professionals who are ready to help you find the right shop house and apply for an investment mortgage easily and quickly.

Contact Lets Move Group and get your Free Consultation now!

Get Your Free Consultation

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Primary Property

Interest Rate

Floating Rate

Primary Mortage

Rate information

Interest rate is 4.7% fixed for the first 3 years, after that, the rate will move to a floating rate (currently 11%)


  • Permanent employee/self-employed for at least 1 year in the same company/total 2 years of work
  • Professional/Businessman working for at least 2 years in the same field
  • At least 18 years old or married

General Personal Requirements

  • Photocopy of husband’s / wife’s ID card (if married)
  • Photocopy of Family Card
  • Copy of Marriage Certificate (if married)
  • Photocopy of Tax ID Number of Applicant
  • Salary Slip / Certificate of Income for the last 1 month original
  • Photocopy of 3 months bank statements
  • Developer’s House Booking Letter / Broker’s Cover Letter