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Buying a property/land here and REALLY need help!

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  • Buying a property/land here and REALLY need help!

    Hi, this is my first post, I may have put this in the wrong place!

    so, I really need help! I am looking at buying some land or a property here but everywhere I look has really crazy prices.

    Jakarta is where I am looking, the legal side of it is fine but for example, in Kelapa Gading for just 600sqm it’s around 8-10 billion rupiah! Who is buying this land at that price?!

    My budget is around 5 billion rupiah and I want a minimum of 500sqm. If I need to build a house, that needs to be taken into consideration on the 5 billion budget. Where is the best place to look? Is my budget too low for the size of the land?

    I would really appreciate any help & again, I apologize if I have posted this in the wrong place, I am new here.

  • #2
    It is illegal for a foreigner to buy property in Indonesia .

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    • #3
      There are a number of real estate sites where you can start to get ideas about what's on offer, as well as a rough idea of pricing, although properties listed on line are likely to be at the top of the range: https://www.rumah123.com/, www.iklanbaris.co.id/kategori/properti,http://www.century21.co.id/. There are quite a few more.

      I presume you have an Indonesian spouse in who's name the property will be titled. If not, then your best strategy is to find a neighborhood that meets your criteria, what ever those are, and rent a place for a few years while you educate yourself regarding the risks of buying real property in Indonesia as a non-citizen.

      Perhaps these comments are way off base, but your initial post is so lacking in detail about your particular circumstance its a shot in the dark as to what might be helpful.

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      • #4
        Assuming you are a foreigner , as Tel522 said , the Indonesian Land Law (UU no.5 Tahun 1960) states that only Indonesian can have full ownership of Indonesian land .

        The same Law allow foreigners to "buy" land under "Right to Use" and "Right to Rent for Building" certificates . From these 2 options , I know nothing about the second one , but I found this information that seems about it (not sure if correct) : [Hak Sewa (Right to Rent) grants the holder the right to build or to use buildings on someone else’s land for a fixed period of time. The period of lease must be specified, but there is no limit on the duration of the rent. In accordance with general principals of rent law, the right cannot normally be sold or otherwise transferred without the consent of the lessor. Hak Sewa cannot be encumbered by an Indonesian mortgage nor can it be registered with the National Land Agency. Indonesian Individuals, Indonesian legal entities, and foreign individuals and legal entities resident in Indonesia may acquire Hak Sewa. Leases of office space, factory buildings and residential premises are all examples of Hak Sewa titles.]

        Regarding the "Right of Use"/Hak Pakai certificate , conditions are stated in : Regulation "PP no.103 Tahun 2015 (foreigner must hold KITAS or KITAP , rent initially for 30 years , additional extensions for 20 years then 30 years , ...) , Regulation PerMen no.13 Tahun 2016 (value limits depending on the place : Bali/Yogyakarta , Rp3 Billion ; Jakarta , Rp10 Billion ; West Java , Rp5 Billion ; ...) . The general rule for this option is stated in Regulation PP no.40 Tahun 1996 .

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        • #5
          Ah sorry. I should have mentioned, I am married in Jakarta with 1 daughter. The property will be placed in my wife’s name.

          My problem is, the prices I am being quoted and seeing on the internet are skeptically high. Are these usual prices?

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          • #6
            As long as you have a pre nup or now post nup < which is still to be ratified >, purchase no problem , be aware prices here have no relation to reality here, in some areas of jakarta and bali ,"buyer beware " in this volatile area .

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            • #7
              I guess it’s a difficult question to ask! I have asked various different people and struggled to get a straight answer. With it being a substantial amount to invest without any real knowledge of the Indonesian property/land market, I’m nervous haha!

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              • #8
                Pick a neighborhood that meets your needs, your criteria, --close to an international school, near family, near a toll entrance, good shopping options close by, places to eat and be entertained, safe, sidewalks, and so on, what ever you feel is important. Once you settle on a general part of town and perhaps two or three neighborhoods, I would suggest you search by walking or driving around the neighborhood. (Not you, but your spouse with or without other Indonesian family in tow. Sellers finding out a bule is involved often results in an asking price on steroids, as I am sure you probably already know.) Often the best deals are to be found by noting crude "rumah dijual" signs owners hang on their gates. Best to have your Indonesian advance unit simply take a huge number of pictures of any property that appears promising. An inquiry is the start of a long tortured bargaining process, assuming you are sufficiently enamored to make an opening offer. Might want to line up a notaris in advance to handle the paperwork and protect yours and your wife's interests.

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                • #9
                  Bear in mind also ,build quality here is generally rubbish ,be prepared for large ongoing maintenance bills , scary !

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                  • #10
                    Thank you very much for your help! I will take your advice and do just that.

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                    • #11
                      Originally posted by tel522 View Post
                      It is illegal for a foreigner to buy property in Indonesia .
                      Yes, of course, but there are lesser forms of ownership rights below Hak Milik (Fee Simple in the USA) that are basically long-term renewable leases (Hak Paki is one form), and strata ownership where you "own" what amounts to a condo, an apartment, but not the land the complex sits on. There are also ways to end run the foreign ownership prohibition, that, for example, involve using a surrogate title holder, with whom you, the bule, have an agreement, where, in essence you become the mortgage holder, as well as the occupier of the property. All of these arrangement are of questionable legality and extremely risking. (Even more risky than trusting your spouse.)

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                      • #12
                        Listed prices are crazy, but you can negotiate discounts up to 40-50%.
                        Paperwork, however, would be a different story. In short, either it will be on your spouse or on your company. Other options are improvisations or are hardly achievable.
                        Last edited by centurion; 4 hours ago. Reason: additiona info

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