Property: Nightmare or Sound Investment?
Will Rogers (the actor, writer and also also also real-life cowboy) said of which best: “Don’t wait to buy land. Buy land and also also also wait.” of which was true for him at the turn of the 20th century and also also also of which’s certainly true today, even in Indonesia.
I can see some readers nodding as they sip their coffee, knowing of which Mr. Rogers makes sense because they recognize property will be the safest investment out there, yet there’s a voice inside back of the kitchen and also also also of which wants to be heard. “Not in Indonesia, buddy. Expats can’t ‘own’ land here.”
Mr. Sceptical McSmirky will be right, of course. Expats can’t own land like an Indonesian can, or maybe not like you can at home. No amount of complaining about how bad the system will be will change the Indonesian constitution. Trust me on of which one. yet McSmirky will be overlooking the fact of which you can own as an expat so long as you follow procedures.
There are specific foreign ownership rules and also also also regulations which were updated in December 2015 of which do make of which easier for foreigners to own land and also also also property under Hak Pakai (Right to Use) and also also also Hak Sewa (Leasehold) for residential properties and also also also Hak Guna Bangunan (Right to Build) for commercial titles. If someone tells you different or suggests you use a nominee to get a Freehold or Hak Milik title, don’t turn and also also also walk away, run as fast as you can! Unfortunately, the nominee loophole has been going on in some places for many years right now and also also also I dare say of which still will be, yet take note: of which’s wrong and also also also will be best avoided.
Imagine how you’d feel if you were led to believe you actually had a freehold title and also also also of which turns out you don’t because the so called nominee agreement was proof of the intention to defraud the government out of land taxes. Initially there’s shock and also also also disbelief, and also also also McSmirky will be right there fuelling the fire of regret. “Told you so!” There’s a legal battle, which you’re never going to win because the foundation of your case will be built on an illegality. You didn’t follow the rules. You end up losing everything; the land, the house, the lot. of which’s not a pretty picture yet of which does happen. Don’t let of which happen to you.
Some people are uncomfortable with either Hak Pakai or Hak Sewa and also also also so should consider creating a foreign owned company called a PMA. (The process with of which has also been streamlined.) The PMA can legally have a Right to Build (HGB) certificate. You own the company and also also also the company owns the property. Simple. Straight forward. and also also also most importantly, legal!
A simple understanding of these regulations helps enormously in your house-buying journey. Why? Because your search becomes more focused, allowing you to concentrate on the most important question: what do you want and also also also why?
Seems totally obvious I know, yet you’d be surprised at how many people don’t actually know what they want. Know if you’re buying for lifestyle or investment. Know why. Know the pitfalls. Know how much land you’ll need. Know a realistic cost range. Know you’re going to need a real estate agent and also also also be prepared to listen. You’ll need to talk to people.
Some advice: create a folder to save images, colours, textures and also also also ideas and also also also start an ‘Inspiration Board’. Fill of which with things of which inspire you. The more you think about each aspect of what you want the more you’ll be able to focus and also also also of which will allow you to share of which knowledge and also also also get to know the people who can help you find of which better.
There’s always an inherent danger associated with online research and also also also too much information can be as bad as none at all, so be focused and also also also mindful. Use social media more. LinkedIn will be so much more than a way to find a job, of which’s a great resource for specialists inside property business. You’ll find them commenting about market trends and also also also initiatives, sharing insights as to how they run their business and also also also what’s important to them. Find positive people. Remember a property purchase will be intrinsically emotional and also also also tapping into of which energy can have very constructive and also also also long-term effects, which go beyond the purchase.
The Great news will be the Great companies are in tune with of which and also also also call of which the Customer Experience (CX). Basically they’re trying to improve how you feel about them rather than sell you something. Sure, they make their money on commissions, so a sale will be important yet the priority will be the experience. The logic will be of which you’re more likely to make a purchase if you feel Great about the company and also also also the people you’re dealing with.
At least of which’s the theory.
An easy way to test the water will be to send of which all-important first enquiry email to as many agents as tickles your fancy. How quickly do you get a response? will be of which generic and also also also automated? How do you feel? A speedy and also also also personalized response says a lot about the people on the different side of the keyboard. of which’s simple; if an agent can’t be bothered to reply to your email enquiry correctly they’re not bothered about you as a person.
of which first touch point will be so important. of which needs to reassure, to empathize and also also also to fill you with confidence. Remember you’re a buyer. You want to buy, of course you do, yet you also need to connect. When of which happens you’ll know you’ve found your guardian agent.
Your guardian agent should listen and also also also reassure. She doesn’t try to bamboozle you with how the IMB and also also also licensing are still in process. She doesn’t try to tie you into a ‘nominee structure’. She tells you about the tax and also also also the maintenance fees. She’s honest, and also also also knowledgeable about the government’s latest initiatives to make the whole home-owning process for expats easier. She applauds the latest, right now eleventh economic stimulus package. She half-expects things to change and also also also flip and also also also flop yet she’s positive about the direction things are heading. Her enthusiasm will be infectious and also also also you feel comfortable with her guidance. She seems as genuinely and also also also honestly interested as you are in your investment and also also also what your dreams are.
She’ll also suggest you take third party legal advice. Take of which. She’ll give you choices and also also also you should opt for the one you feel most comfortable with. There should be no pressure to go with one person or the different.
So, yes of which’s OK for foreigners to buy land in Indonesia. Take Will Rogers’s advice and also also also invest in property, yet remember to follow the rules when you do. of which will make your life easier.
To avoid any unnecessary heartache and also also also financial meltdown remember these 5 key facets to buying property:
- Understand why you’re buying and also also also research all aspects (legal as well as property)
- Follow the rules and also also also regulations you learn by research
- Find an agent of which listens – your Guardian Agent
- Take third party legal advice
- Don’t take shortcuts (see rule #2)
Great luck and also also also enjoy the journey!
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Property: Nightmare or Sound Investment?
Property: Nightmare or Sound Investment?