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Buying property for rental purposes in Indonesia

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  • Buying property for rental purposes in Indonesia

    Hi all, I'm considering buying an apartment/condo to rent out in Bali. The end goal is that it becomes an extra revenue stream once everything is paid off. However, I have never owned property before and am obviously quite new to the world of real estate.

    Does anyone have experience with renting out properties here in Indonesia, specifically Bali? My gf is Indonesian and she can help me with a lot of it, but I would also like to get the perspective of any foreigners who have pursued a similar goal. I know I will need a property management agency and a lawyer, but what else is there?

    I'm familiar with the different legal titles of ownership, but beyond that, as I mentioned, I am totally new. Any info would be greatly appreciated!

  • #2
    you are aware you cannot own a property in indonesia ? , bear in mind most properties will require substantial maintenance , the only decent rental income is in ubud , the rest of the Island is quite low returns .


    • #3
      Yes, I am aware that the property will be in the name of my Indonesian partner.


      • #4
        Originally posted by Bule lapar View Post
        Yes, I am aware that the property will be in the name of my Indonesian partner.

        I had a divorce and know many who did bad business with partners , so I don't recommend .

        In my view , investing in saving account/fixed rate bank deposit in many rural banks may be a better option .

        http://www.livinginindonesiaforum.or...0-Term-deposit (about rural banks) (warranty of money in banks)


        • #5
          Balli real estate market is oversold, only consider it you can get deep discounts on the deals.


          • #6
            Originally posted by centurion View Post
            Balli real estate market is oversold, only consider it you can get deep discounts on the deals.
            ya property is not selling in bali for sure , many remain empty and slowly fall apart , the kind of discounts im hearing currently is around 40 to 60 % and thats only for reasonably built properties which are few and far between, the sticker price means little .


            • #7
              Hi, Is true you get big discount to the property now in Bali, in my opinion if you want still invest in real estate in Bali now you have to focus in topo location to have back you money, i i see interesting listing in this website but look only in prime location don't invest in adventure locations.I just my opinion.


              • #8
                in my opinion.. its still better to buy with company name, or just buy with ur name ,with based on ppjb ( sales n purchase agreement) with developer (not every dev give this offering).. rather with personal agreement..

                if u work in indonesia, now you can buy ( leasehold until 80years..30+30+20yrs).. not only in bali,inc jakarta, n other area ( of course there is limitation, like min price, must be primary product,etc,etc)

                and if generally and mainly, you buy for investment,not for living.. hope for rental yield, and later capital gain, doesnt wanna a extra cost, like u must buy furniture,,or hire interior design( usually quite deep cost), and to maintain the property, ,like gardener, maid,security (if villa or house)n that fixed cost, like service charge, electricity.. its maybe small but can pile up..and coz headache..
                you can always consider condotel/villatel, or kind of , they not just offer prod, but offer services as operator to rent your property,maintenance,filling the furniture, etc. this give you less headache, coz usually your cost, is just ur initial cost to buy the property (+tax+legal fee)..not only that, coz high competition, many dev right now, give flexibel term of payment, rental guarantee, etc,etc.

                this is example for condotel/vilatel :
                i dont mean to promotion, coz this quite premium/super premium product, and the price quite high, but i believe there is a lot of this kind of product, with less pricey/budget conscious, in bali or other area,like jakarta, cikarang ,bandung,etc. u just need to being careful and prudent..

                last thing, almost forgot..Location... beside tourism area (in my view, quite depend of holiday season), you can consider business area or industrial area, in my opinion the demand quite high and stable.. cost usually the user is worker/executive/guest from nearby company in area

                just my small opinion^^


                • #9
                  Hi Bule Lapar based on Government Regulation /Peraturan Pemerintah No.103 Year 2015, non Indonesian ID Card (foreign people), can own a property.
                  Beside you can have a Hak Pakai. Using PT PMA will cost you more money. So, non sense when some one told you, you could not put your own name
                  for the property you have buy. Of course it will not easy, but it is legal.


                  • #10
                    Foreigners cannot own property .


                    • #11
                      well, hak pakai is not hak milik. if your terminology of of owning is a hak milik, well...

                      in hak milik (free hold), you will get land certificate from BPN (indonesia) with heading : hak milik

                      in hak pakai, you will also get land certificate, but the heading: hak pakai

                      if you sell the land to local people, the land can be convert again to hak milik. so..??..

                      the correct statement is, yes u can not own hak milik, but u can own hak pakai..


                      • #12
                        Indonesian Agrarian Law Undang Undang No. 5 Tahun 1960 Tentang: Peraturan Dasar Pokok Agraria.

                        Pasal 21:

                        (1) Hanya warga-negara Indonesia dapat mempunyai hak milik.

                        (Only Indonesian citizens can have a hak milik - free hold land title)

                        so therefore you can only lease the land and property .


                        • #13
                          Diperlukan belajar kepada orang yang sudah ahli dalam dunia property apalagi anda baru mau terjun ke dunia tersebut.

                          Nugraha Konveksi siap membantu Anda untuk memproduksi baju seragam, kaos, jaket, celana DLL dalam jumlah partai besar baik untuk perorangan, perusahaan atau Instansi pemerintah


                          • #14
                            hi, Bule Lapar before you intend to invest or buy property please know the following conditions:

                            Before Sale and Purchase Apartment, 4 Terms This You Should notice

                            Buying and selling an apartment definitely requires some requirements that you must meet. Knowledge of the terms of sale and purchase of an apartment shall be owned by both the seller and the buyer. Especially for the buyers, do not let you lay about this.

                            Terms of sale and purchase of apartments are used to protect the rights and obligations of sellers and buyers when making transactions. By knowing all the requirements, it is expected to buy and sell apartments and other affairs after the buyer occupy the apartment can be more smoothly and easily.

                            Here are some of the preparations you should pay attention to:

                            1. Sale and Purchase Agreement
                            First and foremost terms are in agreement between both parties. There should be physical evidence, black on white as a treaty. This apartment purchase agreement is called PPJB (Sale and Purchase Agreement).

                            The PPJB document contains a mutual agreement between the seller and the buyer accompanied by a signature. Conducted in front of the officials of the land deed, reinforced with stamp duty, and authorized by a notary. The PPJB is temporary before the Deed of Sale and Sale (AJB) is officially submitted when the buyer completes the entire payment of the apartment.

                            2. Document Completeness
                            Furthermore, the completeness of the document should also be considered. As a buyer, you should check and have the necessary documents as proof that the apartment to be purchased is legal and has no problem. The seller must also have documents from the buyer for administrative completeness.

                            The required documents are the principle permit, location permit, building permit (IMB) and the permit of the apartment unit. In addition, if the transaction is completed, the buyer must have PPJB, SP, Receipt of installment payment from booking fee, print out of PBB from tax office, and other basic documents. While the seller must also have a buyer's document such as ID card, KK, marriage certificate, birth certificate, PBB, electricity and water receipt, NPWP, and photo.

                            3. Certificate of Property
                            As a buyer, you need to make sure that the developer has a Certificate of Property (SHM) and Right to Build (HGB). This certificate is a legal proof that the apartment units have been divided separately according to their respective sections. Certificates include copies of land titles, land certificates, plan drawings of each apartment unit.

                            4. Deed of Sale and Purchase
                            Once the sale and purchase of the apartment is filled and the PPJB is agreed upon by both parties, you must maintain the Deed of Sale (AJB). AJB is an authentic proof made by a notary as proof of transfer of the right of the land and the apartment building. AJB is also accompanied by a reversal of the name, ie the name change in the title certificate becomes the name of the buyer so that the seller no longer owns the rights to the land and the apartment building he has sold.

                            If you already understand the terms of buying and selling apartments, then you can start making transactions. During the process of buying and selling, you should make a small note about what you have and will do. Happy trying!

                            Get various benefits by buying an apartment near the airport soekarno hatta, in Jakarta
                            Beli apartemen baru di jakarta murah


                            • #15
                              I have a different but related question: As I foreigner with dual-nationality teenage daughters, could I buy an apartment and put the SHM in the name of one of my daughters? Is there a minimum age requirement for property ownership? Alternatively (or additionally), would I have to wait my daughter has chosen Indonesian as her sole nationality (i.e. at age 18)?