House loan for mixed marriage couple

TheRudeTourist

New Member
Oct 24, 2022
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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
384
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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
 
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TheRudeTourist

New Member
Oct 24, 2022
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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
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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"
 
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TheRudeTourist

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Oct 24, 2022
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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
1,182
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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.
 
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TheRudeTourist

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Oct 24, 2022
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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
297
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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
1,182
83
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

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Oct 24, 2022
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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
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3
3
Selatan
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
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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?
 
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TheRudeTourist

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Oct 24, 2022
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Just an update. So we ended up buying a plot of land through a developer. It will be a little while until we build, waiting for access road to be finished and getting foundations set. We paid a large deposit and the rest decided to get a payment plan through BPR (Bank Perkreditan Raykat) as to free up cash for other things and later we have the option to borrow for the build also.
Wanted to let you guys know that this is an option for mixed married couples (and especially if income is coming from outside of Indonesia, FIFO workers etc.) looking to buy property or build, look into BPR (Bank Perkreditan Raykat), as a lot of couples probably aren’t aware of it.
They took bank statements from my wife and I, also my work pay slips etc. and it was approved within a week.
 

AuroraB

Active Member
Dec 17, 2021
297
215
43
Wanted to let you guys know that this is an option for mixed married couples (and especially if income is coming from outside of Indonesia, FIFO workers etc.) looking to buy property or build, look into BPR (Bank Perkreditan Raykat), as a lot of couples probably aren’t aware of it.
They took bank statements from my wife and I, also my work pay slips etc. and it was approved within a week.
I guess borrowing from a BPR should be ok. But depositing funds is not risk free. 112 of these BPR bankrupted in Bali since 2005.


So what security is the BPR asking for to secure their loan?
 

TheRudeTourist

New Member
Oct 24, 2022
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I guess borrowing from a BPR should be ok. But depositing funds is not risk free. 112 of these BPR bankrupted in Bali since 2005.


So what security is the BPR asking for to secure their loan?
Similar to regular banks, BPR Banks are members of the Indonesian Deposit Insurance Company (LPS – Lembaga Penjamin Simpanan). As such, LPS insures deposits in amounts of up to Rp 2 billion per person.

 
Sep 19, 2021
62
3
8
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 payday loans no credit check.
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
When considering obtaining a mortgage or loan for buying or building a property, it's important to consult with financial institutions or lenders directly to discuss your specific situation. However, here are a few factors to consider:
  1. Healthy Deposit: Having a healthy deposit can be advantageous when applying for a mortgage or loan, as it demonstrates your ability to contribute a significant portion of the property's value upfront. Lenders often prefer borrowers with larger deposits as it reduces their risk.
  2. Employment and Income: Your employment situation and income are crucial factors in mortgage applications. Since you work FIFO (Fly-in Fly-out) from Australia and your wife is currently not working, lenders may assess your income stability and affordability differently. It's important to provide comprehensive documentation of your income and employment to lenders.
  3. Business Certificate: If your wife is self-employed or has a business, some lenders may require her to show a business certificate or relevant documentation to assess her income and financial stability. Each lender may have different requirements, so it's best to inquire directly with them.
  4. Developer Financing: In some cases, developers offer financing options for their properties. This could involve arrangements such as vendor financing or rent-to-own agreements. However, it's important to carefully review the terms and conditions, as these arrangements may have specific requirements or considerations.
  5. Mortgage Broker: Working with a mortgage broker can be beneficial, especially in complex financial situations. A broker can help navigate the lending landscape, provide guidance, and connect you with lenders who may be more open to considering your specific circumstances.
It's important to note that lending practices and criteria can vary between lenders, and each application is assessed on an individual basis. Seeking advice from multiple lenders or consulting with a mortgage specialist can help you understand your options better and find the most suitable solution for your specific needs.