Indonesia Expat had an insightful chat with Alia Wahid, Business Development Consultant of Benham & Reeves Indonesia.
She shared her journey in real estate, her current role, and how Benham & Reeves aims to provide straightforward and accessible UK property investment services for Indonesia-based investors.
Hi Alia! Let’s get started by introducing yourself a bit. What can you tell us about yourself?
I grew up in Jakarta, with strong influences from my Batak and Minangkabau backgrounds. I studied at the London School of Public Relations, where I expanded my passion for journalism and media marketing.
You are currently serving as a Business Development Consultant at Benham & Reeves. Can you share with us the journey leading up to your current role?
I started as a journalist and news anchor at Jak-TV, later transitioning into the healthcare industry where I worked with Singaporean doctors to build their media presence in Indonesia. In 2013, I embarked on a new path in real estate, joining JLL with the residential team and as Head of Marketing Communications. I contributed to the success of Anandamaya Residences, a project in Sudirman, Jakarta. At JLL, I was involved in international property sales in cities such as London, New York, and Los Angeles. This is a career I continue to pursue at Benham & Reeves.
For our readers who might not necessarily be aware of this agency, can you tell us what Benham & Reeves is about, its history, as well as the services that it currently provides?
Benham & Reeves is a UK property agent with 66+ years of experience with 21 prominently located branches across London. We provide an end-to-end professional service including buying; selling; rental and property management; investment advice; and furnishing packages. We now have expanded to 15 international offices in China, Hong Kong SAR, Israel, Malaysia, the Middle East, Pakistan, Qatar, Singapore, South Africa, Thailand, Turkey, and Indonesia.
From your point of view, what makes London properties an investment asset worthy of consideration?
The UK property market is an open market for anyone in the world. London has an economy exceeding GBP 500 billion and an anticipated economic growth of 6.8% by the end of the year. By 2030, the city is expected to create 800,000 new jobs, and it already hosts more than 150,000 international students. Britain faces a critical housing shortage. Bloomberg reports an annual shortfall of 60,000 homes over the past decade, despite population increases of up to 100,000 per year. This imbalance creates a stable property market and a strong rental sector. Also, currency arbitrage with the GBP has declined since 2016 and is forecasted to strengthen, offering two potential profits: capital gains and currency exchange benefits.
How would you describe the current state of the real estate market in London — especially when it comes to its investment-related potential?
As mentioned, the housing market remains stable. Following the Bank of England’s decision to lower the Bank Rate to 5% in August, we’ve seen a 23% surge in new property instructions. The rental market – in 2023, London renters spent a record-breaking GBP 32.1 billion on housing, and rental prices have hit a new high, averaging GBP 2,661; 4% higher than last year. At Benham & Reeves, we receive an average of 20 rental inquiries within 24 hours of listing a property, showcasing the high demand for rental units. The yield in regeneration areas of London can reach up to 6%. This is also the reason why big institutions like overseas developers and private equity funds have been buying residential London assets which have grown the private rental significantly in the last few years.
Tell us about the current landscape of London off-plan properties that are accessible to investors right now.
London is the ultimate fusion of modernity and rich history. Some off-plan properties in the market are a blend of contemporary design and heritage elements. Developments like Nine Elms and the iconic Battersea Power Station are transforming into new city landmarks, merging residential, commercial, and cultural spaces in a way that redefines urban living. Similar to Canary Wharf, it has transformed into vibrant hubs that offer a ‘live, work, play’ environment. These developments often come with state-of-the-art amenities such as gyms, parks, rooftop terraces, and concierge services. Also, major regeneration projects are reshaping entire neighbourhoods, in areas like Slough, London Dock, White City, Ealing, and Twickenham. These revitalised zones are establishing thriving new communities. Since the Elizabeth Line officially opened in May 2022, it made connectivity across London unmatched. Elizabeth Line runs from Reading and Heathrow Airport in the west and to Shenfield and Abbey Wood in the east. It reduces travel times significantly which give a positive impact on property prices, business growth, and increased demand for residential and commercial spaces across London.
How can a prospective investor, Indonesian or expat, educate themselves before purchasing real estate?
It is crucial for buyers to partner with a trusted property agent to educate them on legal and regulatory differences, currency exchange risks, mortgages, taxes, property management, language barriers, and market knowledge. At Benham & Reeves, we have a Bahasa Indonesia and English-speaking agent based in Jakarta, a UK mortgage advisor, a tax advisor, and a solicitor to guide them every step of the way.
Can you explain the steps of buying a property in the UK?
Once you have selected your ideal property, the next step is to reserve it at a fee ranging from GBP 2,500 to 10,000. At this stage, you’ll also need to provide ID, proof of funds, and appoint a UK solicitor to handle the legal aspects. Your solicitor will conduct all necessary checks, ensuring that contracts are signed within 28 days. For hard cash payment, typically, it involves a 10% down payment and 90% due at completion. Stamp duty tax is payable at handover, with rates varying from 0% to 15%, depending on the property’s price bracket and whether it is an investment property.
What is the most common misconception about international property investment, specifically in the UK?
The most common misconception is that buyers must pay all cash upfront. What many Indonesia-based investors may not realise is that they have access to mortgage financing in the UK. For off-plan properties, the typical structure involves an initial down payment of 25%, with the remaining 75% financed upon completion. This strategy allows you to optimise your investment while leveraging an international financing option, a key advantage for savvy investors looking to maximise their returns.
Now that Benham & Reeves has an office in Indonesia, can you tell us any future plans you have that you can tease at the moment that might intrigue our readers?
Absolutely. I am thrilled to announce the opening of our new Jakarta office, located in Equity Tower, SCBD. As for future plans, we are soon going to launch exclusive sales of new residential projects in Dubai and Abu Dhabi through the Golden Visa programme. Benham & Reeves is an international residential expert, so we can also assist buyers who are looking for Singapore, Japan, and even Switzerland. Free consultations are available!
BENHAM & REEVES
- Phone: +628111021680
- Instagram: @letsgointernational.property
- Website: www.benhams.com