FAQs ABOUT BALI PROPERTY INVESTMENT
(1) Many people believe that it is not possible to buy land or property freehold in Bali because an Indonesian citizen must be a partner. What is the actual situation?
a. By Nominee: Enter into a legal contract with an Indonesian Partner whereby they hold the freehold titile to the the property and sign over practical control to the foreign purchaser through a power of attorney (nominee).
b. By Leasehold: On expiry of the lease, which can be 20-30 years with renewals for another 30 years, the property reverts back to the Indonesian owner with all existing structures.
c. Through a Foreign Investment Company: This is one of the safest ways to purchase property in Indonesia. Foreigners can fully control the company and sell the title to parts (apartments, villas) of the property for 30 years, with optional 20 and 30 year extensions. This is the method applying to the Lovina Beach Resort. It is always prudent to seek independent advice on your property status from an accredited legal professional specialising in Indonesian Property.
(2) How do Bali land and property prices compare to those in other countries? What is the future outlook for prices?
Bali property prices, particulary those in North Bali, are currently among the best value in the world. Prices vary depending on the location, with properties to the south at Seminyak, Nusa Dua and Kuta, costing many times those in the North. Prices at North Bali are currently up to one third those in the south and represent great value, while they last. The increasing development and tourist interest in Bali's North likely mean prices will steadily increase.
(3) How much do I have to put down as a deposit if I decide to purchase? How long do I have to pay the full purchase price?
Usually 30% deposit and then progress payments, depending on the time frame for construction. The payment terms will be clearly stated in your contract. Please contact Louise + 65 9742 1164 if you need to further discuss payment arrangements.
(4) What makes North Bali a particularly worthwhile place to invest at the moment?
There is increasing tourist interest in North Bali because people remain keen to discover the unique peaceful atmosphere, history, culture and environment of 'Old Bali' that some say has been somewhat lost due to the over-commercialisation of the southern parts of the island. The Indonesian Government also recently announced plans to build a second airport for Bali, in the North, by 2012, which would open up the area to more visitors.
(5) What is the standard and quality of Bali constuction and is there an authorised building code?
All new construction in Indonesia requires a building licence, known as an IMB. This building licence will stipulate all the construction specifications. It is very important to deal with a reputable builder who will follow the specifications of the IMB. We strongly recommend that you do your own due diligence and view the builder's previous constructions if possible. The builder involved with the Lovina Beach Resort has lengthy experience working in Bali, having constructed numerous villas across Bali and is known for the high quality of his work.
(6) If I live overseas, how can I arrange the management of my Bali property?
There are a range of reputable companies that arrange property management. Depending on whether you have purchased an apartment or a house. Apartments and Hotel Resorts, like the Lovina Beach Resort, have highly professional international property management companies to take care of your investment.
(7) What financing is available for me to use to purchase Bali property?
Generally there is no financing available within Indonesia. You may wish to check with your particular bank in your country.
(8) What examples can you give of people who currently own property in Bali?
There are number of testimonials from Bali property buyers on the page accessible through the 'Testimonials' tab.
If you have any further questions please contact:
Lovina Beach Resort Marketing Director Louise Verden – +65 9742 1164
info@lovinabeachresort.com – www.lovinabeachresort.com