Tips for buying properties with fire or suicide histories
JAKARTA – Properties with specific histories, such as former fires, criminal acts, or suicide incidents, are often perceived as having different market values in the property market. Buyers are advised to exercise caution before purchasing such assets due to psychological market factors and long-term liquidity concerns.
Bambang Ekajaya, Deputy Chairman of the Indonesian Real Estate Association (DPP REI), explained that properties with specific conditions or histories typically have significantly lower prices than normal market value. “Problematic homes, such as those with fire damage, murder, or suicide histories, are considered haunted or stigmatised, so buyers must get them at least 30 to 50 per cent below market value,” Bambang told Kompas.com on Friday, 29 May 2026.
Beyond price considerations, Bambang said buyers should also consider other strategies before investing in such properties. “It should be for end-users or long-term investors, as these properties are relatively hard to sell quickly and take a long time for the market to forget the incidents,” he added.
Bambang stressed that psychological market factors significantly impact the resale value of properties with specific incident histories. Therefore, buyers should consider the ownership duration before proceeding with a transaction.
- Check land title legality
According to Bambang, buyers must verify the status of the house and land certificates before completing the transaction. “The most crucial step when buying a second-hand house is checking the certificate at the National Land Agency (BPN). If it’s a Right to Build (HGB), verify its validity period and the cost to upgrade to a Freehold Title (SHM),” he said. He also reminded buyers to ensure Property Tax (PBB) is paid up to the Deed of Sale (AJB) process. Additionally, building legality must be confirmed by checking the Building Permit (IMB) or Building Construction Approval (PBG) against the current structure.
- Check land history and potential disputes