House loan for mixed marriage couple

  • Welcome to the newly upgraded forum. If you spot any problems or issues please post them here

TheRudeTourist

New Member
Oct 24, 2022
7
0
1
Hey guys,
Just wanted to see what mine and my wife’s options (if any) would be regarding possibly obtaining a mortgage/loan for buying or building a property.
We have a very healthy deposit amount, I’m working FIFO from Australia, my wife is currently not working and hasn’t since we had our newborn. She spoke briefly to BRI and they mentioned she would probably have to show a business certificate but also mentioned we could possibly go with a developer.
Just seeing if anyone has any experience or know what the best option for people in similar situation to us would be regarding getting a mortgage/loan, if it’s possible or any other ways to do it , let me know please.
Thanks
 

gtrken

Active Member
Nov 4, 2007
300
97
28
65
Perth W Australia
Hey guys,
Just wanted to see what mine and my wife’s options (if any) would be regarding possibly obtaining a mortgage/loan for buying or building a property.
We have a very healthy deposit amount, I’m working FIFO from Australia, my wife is currently not working and hasn’t since we had our newborn. She spoke briefly to BRI and they mentioned she would probably have to show a business certificate but also mentioned we could possibly go with a developer.
Just seeing if anyone has any experience or know what the best option for people in similar situation to us would be regarding getting a mortgage/loan, if it’s possible or any other ways to do it , let me know please.
Thanks
Think you might find the interest rates a bit scary.
What sort of money you look at borrowing? Maybe better to get a personal loan in Australia .

Cheers
Ken
 
  • Like
Reactions: TheRudeTourist

TheRudeTourist

New Member
Oct 24, 2022
7
0
1
Think you might find the interest rates a bit scary.
What sort of money you look at borrowing? Maybe better to get a personal loan in Australia .

Cheers
Ken
A personal loan in Aus is pretty similar interest rates in indo for mortgage from what I’ve seen and I don’t think I’d get anywhere near the same amount as a house loan lent to me. It would be a manageable amount we would borrow (compared to Aus mortgage standards), would be pretty confident we could knock it out pretty comfortably. Let’s say we brought a 2 or 3 bedroom villa for example, I suppose we could rent it out monthly also.
But maybe if it’s not possible I suppose we could buy a few are land and just build slowly as we get the cash?
 

AuroraB

Active Member
Dec 17, 2021
113
77
28
Let’s say we brought a 2 or 3 bedroom villa for example, I suppose we could rent it out monthly also.
But maybe if it’s not possible I suppose we could buy a few are land and just build slowly as we get the cash?
Your business plan seems to be in the early stages. I would suggest to calculate monthly/annual cash flow in detail for some options first before ever considering an Indonesian bank -- now with interest rates climbing!

I do long term rent of newer villas as I found that suits my risk profile as if I buy villa it might be hard or impossible to sell in the event I want to quickly move on. The long term rental price is low compared to asking price for buying a villa these days. The villa owner is also stuck with taxes and major upkeep costs, and eventually having to do a renovation every 5 years or so.

You can search the forum for "villa"
 
  • Like
Reactions: TheRudeTourist

TheRudeTourist

New Member
Oct 24, 2022
7
0
1
Your business plan seems to be in the early stages. I would suggest to calculate monthly/annual cash flow in detail for some options first before ever considering an Indonesian bank -- now with interest rates climbing!

I do long term rent of newer villas as I found that suits my risk profile as if I buy villa it might be hard or impossible to sell in the event I want to quickly move on. The long term rental price is low compared to asking price for buying a villa these days. The villa owner is also stuck with taxes and major upkeep costs, and eventually having to do a renovation every 5 years or so.

You can search the forum for "villa"
You mean you’re leasing a villa long term to live in or sub-let? Maybe I’m looking the wrong places but long term villa rentals I’ve seen lately are pretty highly priced compared to a couple we’ve looked at to buy.
Lets say we took out a 10 year loan, after the 10 years that would be our asset, where as a 10 year villa rental we wouldn’t have anything to show. Correct me if I’m wrong, Let me know your thoughts anyways
Thanks
 

Fred2

Well-Known Member
Oct 13, 2010
1,163
76
48
Surabaya/Australia
You will not get a loan from Australia and if your wife is not working you will not get a loan from Indonesia as your wages are not used. Vendor finance is the best, we have purchased two houses and land this way. Just pay monthly, set price, get your wife to look around.
 
  • Like
Reactions: TheRudeTourist

TheRudeTourist

New Member
Oct 24, 2022
7
0
1
You will not get a loan from Australia and if your wife is not working you will not get a loan from Indonesia as your wages are not used. Vendor finance is the best, we have purchased two houses and land this way. Just pay monthly, set price, get your wife to look around.
I can get a personal loan from Australia but wouldn’t be enough to purchase a property that we’re after, but could go towards a larger deposit.
I thought so regarding loan in Indonesia and I’m guessing there’s no other way around it? It makes me wonder who they’re actually approving these home loans to considering the repayments are very high.
Will definitely look in to vendor finance, can you give me a place to start or any more details. Is it just an agreement between notaris and buyer/seller or a bit different ?
Thanks for the info
 

AuroraB

Active Member
Dec 17, 2021
113
77
28
You mean you’re leasing a villa long term to live in or sub-let? Maybe I’m looking the wrong places but long term villa rentals I’ve seen lately are pretty highly priced compared to a couple we’ve looked at to buy.
Lets say we took out a 10 year loan, after the 10 years that would be our asset, where as a 10 year villa rental we wouldn’t have anything to show. Correct me if I’m wrong, Let me know your thoughts anyways
Thanks
I'm doing long term rental -- not lease. Right now I'm paying 6m up front and renew if I'm happy. It is brand new western standard villa and I probably pay annual rent 5% of a selling price as Hak Milik Land (local owner) here in South Denpasar. Standard rental duration is 1 year paid up front. Sometimes owner ask for 2 or 3 years. I'm only responsible for minor repairs and upkeep, like AC service. Owner has responsibility for the rest (equipment breakdown, leaking roof, painting etc).

Buy vs rental can be compared by looking at the cashflow.
- Rental is quite simple; lets say 1 year rent paid up front and maybe security deposit.
- For the buy case there are a fee things to consider (purchase fee, initial and annual taxes, capital costs, initial renovation, furniture/fittings, regular maintenance, 5 yr renovations, unforeseen costs etc) -- all sunk costs. After 10-15 years the value will be close to value of the land at that time unless you have spent a fortune on upkeep.

What I'm doing is looking at what I can do with the money instead of buying a villa/house.
I have found that investment in liquid assets provide enough funds to pay for all living costs and other costs. In addition the investment accumulate savings: The part to "show for after 10 years".

The big advantage for me is what I mentioned regarding risk profile: If I need to leave in a hurry or there are other issues with the villa location (bar open nearby, garbage disposal open nearby etc etc) I will have limited loss, while a villa may be hard to sell for asking price!

Further; A villa owner need to spend money on renovation regularly in tropical humid climate while I can just move to another new or newly renovated villa in mint condition!
 

Fred2

Well-Known Member
Oct 13, 2010
1,163
76
48
Surabaya/Australia
I can get a personal loan from Australia but wouldn’t be enough to purchase a property that we’re after, but could go towards a larger deposit.
I thought so regarding loan in Indonesia and I’m guessing there’s no other way around it? It makes me wonder who they’re actually approving these home loans to considering the repayments are very high.
Will definitely look in to vendor finance, can you give me a place to start or any more details. Is it just an agreement between notaris and buyer/seller or a bit different ?
Thanks for the info
You need your wife to start looking in the local papers, Rumah123, Facebook, there is always bargains to be found. Vendor finance is easy, pay a deposit and the house/land is put in to your name, when you finish paying you get the certificate. If I was you and FIFO I would just rent, monthly till you find the right spot.
 

TheRudeTourist

New Member
Oct 24, 2022
7
0
1
You need your wife to start looking in the local papers, Rumah123, Facebook, there is always bargains to be found. Vendor finance is easy, pay a deposit and the house/land is put in to your name, when you finish paying you get the certificate. If I was you and FIFO I would just rent, monthly till you find the right spot.
Yes we are already flat out on those sites, just didn’t know how to look for vendor finance specifically, or is this just something discussed with the owner. And is it possible to rent the place out while make paying off the place, or another thing to be discussed with owner?
Currently just rent a yearly house, so got the time to look around.
Thanks again
 

TheRudeTourist

New Member
Oct 24, 2022
7
0
1
I'm doing long term rental -- not lease. Right now I'm paying 6m up front and renew if I'm happy. It is brand new western standard villa and I probably pay annual rent 5% of a selling price as Hak Milik Land (local owner) here in South Denpasar. Standard rental duration is 1 year paid up front. Sometimes owner ask for 2 or 3 years. I'm only responsible for minor repairs and upkeep, like AC service. Owner has responsibility for the rest (equipment breakdown, leaking roof, painting etc).

Buy vs rental can be compared by looking at the cashflow.
- Rental is quite simple; lets say 1 year rent paid up front and maybe security deposit.
- For the buy case there are a fee things to consider (purchase fee, initial and annual taxes, capital costs, initial renovation, furniture/fittings, regular maintenance, 5 yr renovations, unforeseen costs etc) -- all sunk costs. After 10-15 years the value will be close to value of the land at that time unless you have spent a fortune on upkeep.

What I'm doing is looking at what I can do with the money instead of buying a villa/house.
I have found that investment in liquid assets provide enough funds to pay for all living costs and other costs. In addition the investment accumulate savings: The part to "show for after 10 years".

The big advantage for me is what I mentioned regarding risk profile: If I need to leave in a hurry or there are other issues with the villa location (bar open nearby, garbage disposal open nearby etc etc) I will have limited loss, while a villa may be hard to sell for asking price!

Further; A villa owner need to spend money on renovation regularly in tropical humid climate while I can just move to another new or newly renovated villa in mint condition!
Yea I understand, but I suppose it’s like saying in Australia for example it’s also overall cheaper to rent when you factor in all the other costs being an owner/paying mortgage, and it would be better to invest your savings that you save from not having a mortgage into shares for example ..but the problem is most people blow their savings, so I guess having a mortgage is long term a forced savings account in a way. Depends how you look at it.
 

AuroraB

Active Member
Dec 17, 2021
113
77
28
Yea I understand, but I suppose it’s like saying in Australia for example it’s also overall cheaper to rent when you factor in all the other costs being an owner/paying mortgage, and it would be better to invest your savings that you save from not having a mortgage into shares for example ..but the problem is most people blow their savings, so I guess having a mortgage is long term a forced savings account in a way. Depends how you look at it.
Well as I mentioned, it is not only the financial side for me, but also about liquidity: If I'm not wrong it is fairly easy and quick to sell a house in one of Australia urban areas usually with several bidders. In Bali you can wait for years until (if ever) you find one person willing to close near your asking price.

Ten years ago buying land (SHM) and a villa would be a no brainer as land prices probably increased by factor ten since. But now the land prices are very high in the south as asking price (SHM) for a plot of former rice field can be 4Juta/m2 or US$130,000 for a decent size plot of 500m2. A plot of 500m2 that sell for US$1,000 if is still going to be used as a rice field! Land in tourist zone can be 20Juta/m2 or US$670,000 for 500m2.

So from now onwards I have a hard time seeing how land prices can increase much as it is well outside reach for most locals. As such how is the value of the "investment" going to grow?
 
  • Like
Reactions: sakumabali