home loans

mr.dillz

hi guys,first post so please be gentle!!!!!Just wondering if anyone out there has any recent home loan experience in bali? I currently work FIFO out of perth and decided that bali is the place for me. I recently got rid of my property in TAS and have a little few saving but not enough to buy outright. Myself and my GF (Indo) have found a villa that we are very interested in at a good price. When speaking to the banks i was pretty confused with the interest rates - seems way more expensive than australia but there may be a reason? is the loaning setup the same as in australia? just a bit of general info on this topic would be muchly appreciated :) Im defiantly learning as I go!!!!!!!cheersND

SHoggard

What would your residency status in Bali be?

mat

Interest rates are more expensive, but on the up it is a good place to invest cash. I believe you will need a Kitas visa of some sort to deal with the banks in any way here. The probable only option is to get a loan in your girlfriends name. Also as you probably know you can not legally own property here in your own name, so it would be a good idea to do a search on threads about 'owning a property in Bali/Indonesia'.

hinakos

If your FIFO then your no doubt on a 3/1 or 4/1 schedule?As such your on a business visa or VOA id imagine.Forget getting a laon, the banks wont really touch you (unless you go through your missus and she has an exceptional line of credit)Yes interest rates are more expensive than Oz, thats just the way it is...inflaton here is high and so is interest.Maybe you can work out with the owner to pay a decent chunk off with the initial contract signing and then the rest in installments.FIFO means you should be able to commit to pretty hefty repayments, maybe enough to interest the seller into this kind of deal.It can all be done via a contract.Not telling you how to live your life, but if it were me i'd be pretty happy with a long term lease(eg 25 years) and keep everything in your own name rather than trying to use your missus's name in any papaerwork (or that of a nominee).Keep it simple.FIFO means your liver will fail in another 10 years and you wont be around to enjoy the final 15 anyway.

Barekarma

Mr Dillz,I would support Hinakos view. Get a 25 year lease in YOUR name if you are looking for a house or villa. As for loans, even with a KITAS, you may not find a reputable bank that will help, so think about another route to raise finance. The interest rates are amazingly high here. Loan sharks come to mind! There is a lot of people here more than willing to say everything is simple when there is money being spent, and then walk away when the problems emerge. And, finally, if it is too good to be true, then it really IS too good to be true! Having said all that, I wish you success in your venture.Barekarma

mr.dillz

thanks guys... appreciate it

Dunaden

Have you tried one of the Big 4 banks here in Aus? I'm a little way(time wise) off doing this, but I don't think its out of the picture.

potto

Have you tried one of the Big 4 banks here in Aus? I'm a little way(time wise) off doing this, but I don't think its out of the picture.[/QUOTE]Wouldnt you need a property in Australia as collateral, the Bank here wont loan against overseas properties, especially when they arent in your name.Potto

no.idea

The banks in Oz will not lend money for a property in Indonesia. The correct advice has already been given. Get a long term lease in YOUR name. Okay we all know that your girlfriend is not the same as the others however protect yourself.Why not have a chat with the expat Aussies in your area. You will get some good advice.

Thevoice

I would probably suggest that you could do a deal with developer or villa owner by paying cash phased in a year terms , this is also great to avoid high interest rate from the bank ... as everyone had suggested you cant own the land , so in this case only lease ...if you wish to use other name such as your gf name, there might also be an underlying consequences.... like "no idea " said please have a chat with an expat in your area would probably best idea.

SHoggard

I would probably suggest that you could do a deal with developer or villa owner by paying cash phased in a year terms , this is also great to avoid high interest rate from the bank ... .[/QUOTE]Now, why would you, as a villa owner, allow someone to pay over a long term when you could:lease itrent it outor sell it for 100% cash

Fred2

I was at cuputra world last night, 25 different developers were offering 30% deposit & repayments over 2 years .The banks were offering 7.5% over 10 years. Lots in Surabaya, some in Bali, but Malang 125-300mill nice weekend house.

Thevoice

Fred2... i had paid exactly 30% deposit and repayment over 1.5 years.

SHoggard

Fred2

Kitas holders. you buy the house/land package, leave the title in the developers hands/name (no tax) normal in indonesia. there lawyer sign all the paper work to say you have paid for the house. I have found over the years that Indonesian people don't like paying tax.

gilbert de jong

projects not yet build though...basically the developer (if he finishes the project) becomes the nominee, thus lawyer contracts mean nothing (not legalized documents)

Fred2

most of the project are 50% finished so they have house ready, you have a reciept of sale & will stand up in court, as i said most indonesian don't take it out of the developer name, no tax. Unless you want to use the title at the bank.

ferdie

projects not yet build though...basically the developer (if he finishes the project) becomes the nominee, thus lawyer contracts mean nothing (not legalized documents)[/QUOTE]So the developer can built them with the customers money and bank loans, and they can put the land certificate for a loan if they need them huh?There's a lot of problem with "naughty" developers in Indonesia, so my advise is: Buy building properties only when the building are finished

Fred2

yep 30% depoist when the house is lockup stage, then the rest when finished.

gilbert de jong

So the developer can built them with the customers money and bank loans, and they can put the land certificate for a loan if they need them huh?There's a lot of problem with "naughty" developers in Indonesia, so my advise is: Buy building properties only when the building are finished[/QUOTE]somewhat like that...yes, they (not all but most) take the downpayment...this downpayment goes into a short deposit account and the process of building starts (usually)..so they use the DP to start building and to make a little on the side..most developers (and contractors) have running contracts between them and suppliers of buildingmaterials, this means preordered cement/steel/wood/etcetc against set prices at time of ordering, when they have the materials delivered then they pay for that the beginning of each new month (conveniently interests on short DP's are paid out at the end of each month) @fred...wonder how a bill of sale will stand up in court when the developer filed for bankruptcy ?