Land purchase/lease in Bali - issues to consider
I worked my way through this thread which alerts people to the many complexities of purchasing properties In Indonesia. At the moment I am contemplating "buying" a 16 year lease on a house "owned" by a foreign national living abroad.
I recognize the need to sight the land certificate relating to the property; obtaining a notaris oversight of any agreement; consulting the local Banjar before proceeding and the need to take heed of the old maxim "caveat emptor."
After some due diligence it would seem the simplest process to take over any such leasehold is by having a tenancy agreement made in the name of my Indonesian wife. As we would not be "owning" the property then I presume a prenuptial agreement would not be relevant although there is some dispute in the above thread about the need for that anyway.
I note the various taxes involved in property transfers but am not sure what if any taxes apply in taking over a leasehold.
I presume that at the end of that lease the property would simply revert to the original landowner preceding the present foreign "owner of the lease". As the place has furnishings I am not sure what the ownership of those items would be at the expiry of the 16 year lease.
I am yet to hear back from the present "owner" of the 16 year lease about availability of the place but any information relating to my questions would be useful for future reference even if this particular property were unavailable.
Looking at the asked for price, the lease would work out reasonably in terms of rental.... (assuming I don't kark it next week or sometime in the not too distant future. )
But then what of any maintenance issues? I guess these would then become my responsibility but to whom am I responsible regarding the actual owner of the property?
And while on this general topic how does taking a long term lease differ in terms of a leasing agreement for a one or several years tenancy?
Thanks in anticipation of helpful comments.
I worked my way through this thread which alerts people to the many complexities of purchasing properties In Indonesia. At the moment I am contemplating "buying" a 16 year lease on a house "owned" by a foreign national living abroad.
I recognize the need to sight the land certificate relating to the property; obtaining a notaris oversight of any agreement; consulting the local Banjar before proceeding and the need to take heed of the old maxim "caveat emptor."
After some due diligence it would seem the simplest process to take over any such leasehold is by having a tenancy agreement made in the name of my Indonesian wife. As we would not be "owning" the property then I presume a prenuptial agreement would not be relevant although there is some dispute in the above thread about the need for that anyway.
I note the various taxes involved in property transfers but am not sure what if any taxes apply in taking over a leasehold.
I presume that at the end of that lease the property would simply revert to the original landowner preceding the present foreign "owner of the lease". As the place has furnishings I am not sure what the ownership of those items would be at the expiry of the 16 year lease.
I am yet to hear back from the present "owner" of the 16 year lease about availability of the place but any information relating to my questions would be useful for future reference even if this particular property were unavailable.
Looking at the asked for price, the lease would work out reasonably in terms of rental.... (assuming I don't kark it next week or sometime in the not too distant future. )
But then what of any maintenance issues? I guess these would then become my responsibility but to whom am I responsible regarding the actual owner of the property?
And while on this general topic how does taking a long term lease differ in terms of a leasing agreement for a one or several years tenancy?
Thanks in anticipation of helpful comments.