Foreigners can now lease 5 billion rupiah apartments

spicyayam

davita

I would love to know how many foreigners end up buying "flats" through these new regulations- 30 year lease- minimum value of [COLOR=#333333][FONT=Arial]Rp 5 billion- only applies to high rise apartments- cannot be ground floor[/FONT][/COLOR]http://www.thejakartapost.com/news/2015/06/25/jokowi-oks-plan-foreigners-own-flats.html[/QUOTE]IMO the only foreigners who might do this are from other Asian countries. Rp 5 billion would buy a very nice apartment and many Singaporeans, Koreans, Chinese or Hong Kong money might come into the market as equivelant property in those countries is expensive. The money also may not be very clean and buying a Jakarta hi-rise and flipping later produces clean money. There are many speculators who might think the market may boom as Indonesia is seen as the fastest growing economy....given the current politics I'm not so sure.In any event i wish the RI gov't well and hope it does boost the price of flats ....I have one in Jakarta for sale.

SusanSydney

I think you're right about the money laundering Davita.My place in the outer suburbs of Sydney has doubled in the last 5 years or so and the main reason is probably Chinese money coming in and they can pay a lot more than many locals because our property seems cheap to them and because the benefit of parking the money in a nice safe stable place like OZ outweighs the cost of overpaying for the property.I must say though that I would have thought Sydney is a lot safer and more welcoming to Chinese than Jakarta is?I'm happy that they've pushed our prices up though - more chance of affording the retirement plan!

spicyayam

Markit

I'm just wondering how the number of foreign people that "own" property in Indonesia now illegally will compare with the future number of foreign people that "own" property in Indonesia when it becomes legal(ish). I trust the bureaucrats and notaries to be equally as inventive as they have been till now in making up some framework that will make full ownership possible of damned near anything - not just apartments. Money motivates.

SusanSydney

Thanks for the link Spicy - I hadn't seen the Reuters thing although I was aware of their reaction in malaysia as it was covered in the Fairfax news.Fairfax journos quote the Malaysian authorities as saying that they had an audit done but it wasn't as detailed as the Fairfax discoveries!Fairfax has a number of Chinese speaking journos.They have a senior reporter at Fairfax, John Garnaut, who seems to have all the connections to get the juicy details. He spent a couple of childhood years in Beijing because his father was our ambassador there and then spent a few years as Beijing Correspondent in adulthood for Fairfax.

davita

I think you're right about the money laundering Davita.I must say though that I would have thought Sydney is a lot safer and more welcoming to Chinese than Jakarta is?[/QUOTE]I'd suggest that the source of dirty money would be more scrutenized in Australia than it would be here in Indonesia. The RI gov't is already drafting a bill to allow corruptors to return their money to Indonesia as part of an amnesty...:icon_rolleyes:I would find the money in Singapore banks, confiscate it, then ask the 'owner' to prove it was originally legitimate...:icon_evil:IMO...most of the Asian money that boosted your apartment price was probably legitimate, just like in Vancouver where I come from. It's just that Canada and Australia have been liberal in allowing these investments, but lots of Asians returned to Asia to work after getting Canadian citizenship, and left the apartments empty... and now that policy has come to bite local people in the arse.The British Columbia government is now thinking of applying a non-resident property tax to stimulate selling....or residing and paying taxes like other residents.

Markit

Foreign property ownership is here (ish) : [url]https://www.facebook.com/Angelpilot4u/videos/971858129512952/[/url]Note they mention "apartments AND HOUSES" - I'm not ordering the Champers just yet but I am ... semi-erect.

davita

Markit

Sorry the link is in Farcebook and you will have to have that for it to connect.

matsaleh

I'm on Facebook, but the link is returning this at the moment.[COLOR=#141823][FONT=helvetica][h=2]Sorry, this content isn't available right now[/h][/FONT][/COLOR][COLOR=#141823][FONT=helvetica]The link you followed may have expired, or the page may only be visible to an audience you're not in.[COLOR=#9197A3][URL="https://www.facebook.com/Angelpilot4u/videos/971858129512952/#"]Go back to the previous page[/URL] . [URL="https://www.facebook.com/"]Go to News Feed[/URL] . [URL="https://www.facebook.com/help/?ref=404"]Visit our Help Centre.[/URL][/COLOR][/FONT][/COLOR]

matsaleh

Maybe this is the link you provided, Mark. This is direct from YouTube.[video=youtube;2Mvbr4ZowZ4]https://www.youtube.com/watch?v=2Mvbr4ZowZ4[/video]

davita

Thanks matsaleh...I watched the utube commentary you provided from a TV newscast and, typically, it actually said nothing other than what someone would[B] like[/B] to happen. I'd be more interested in reading the laws where this government [B]makes[/B] it happen...otherwise who can be trusted? Is it any wonder capital is flowing out of the Jakarta stock and foreign exchange markets.

Markit

Yeah that's the link and thanks Matty.

matsaleh

This article on Bareksa.com (using Google Translate) states that Jokowi has technically approved the changes to the law, but the changes are still under review.[url=http://translate.google.co.id/translate?hl=en&sl=id&u=http://www.bareksa.com/id/text/2015/06/25/jokowi-bolehkan-asing-miliki-properti-di-indonesia-harga-bakal-meroket/10813/news&prev=search]Google Translate[/url]

davita

Thanks again matsaleh....google translate is a hoot...The last para is interesting and agrees with my point in an earlier post here about Canada's tax policy....as the UK seems to have implemented something similar....[I]Reported Bareksa correspondent in London, England; This country started to strengthen the rules on property ownership by foreigners. Foreigners are free to buy property, but for a house that is not used as a main residence are subject to high taxes, the smallest 28 percent. This policy will begin diberlaku per April 2015, backed many complaints about the craze London property prices in the city. The goal, to dampen property speculation.[/I]

Markit

Thanks so much Matty! I don't know where you find all this stuff - I tried finding the original vid on YTube without success and now you have a corroborating article that [I]seems[/I] to agree with the TV report. I think the devil may be in detail (when is he not?) but I'm beginning to feel the stirrings of a semi-erection about this. I would feel a whole lot more priapic if I knew exactly what they meant by "ownership is limited to luxury apartments or [B][I]landed residential" [/I][/B]. And does anyone know what [B]melonjakkan[/B] means? Unless it's about stealing fruit...Off to go slam it in the door.

davita

Before you start flashing and maybe damaging the beast markit.... you might want to read the verbatim Jakpost report of the Public Works and Housing Director General statement....[I]"The loosening of foreign ownership property assets would apply only to high-rise apartments, [COLOR="#FF0000"]not landed houses[/COLOR], and there might be different regulations for Indonesian and foreign property owners."[/I]Like I said in an earlier post...it's possible a foreigner can pay the same for a 30 year lease that his next door neighbor, a WNI, owns ad finitum....and gets a mortgage.

matsaleh

"Melonjak" means "to soar" and adding "kan" at the end means it causes it to happen.

spicyayam

I think the Jakarta Post discovered some time ago that articles saying foreigners can buy property in Indonesia gets them lots of links and traffic.