Leasehold land and building a custom villa - is it a good idea?

[Markit]

There is no "first, last and security" bond as far as I know in any lease agreement on Bali. That effectively means when you go you are simply gone, there is no legal recourse from the side of the owner to whatever state you have left the property in. He can't withhold your "security deposit" because there isn't one. I can't imagine anyone taking anyone to court here to recover some presumed damage to lease hold property.

 

[Juggler]

Rather than start a new thread another question.

I have found a plot of land and are considering leasing it. Can I please get a few answers to the following if possible.

Has anyone recently built a villa in the Berawa area?

• If so, can they recommend their people?
• would you recommended doing a owner builder thing or engaging a company to complete
• From the aquistion of the land to breaking ground on the site what is an indicative time frame to obtain an IMB. I have read many many posts on a few sites and the time frame varies wildly from 6 weeks to 7 months...rather confusing.

Lastly with all the headaches involved, do you think it better to buy a villa completed, relax and drink Bintang or go down the building route.
Any advise appreciated

 

[Markit]

Before you do any buying first check to make sure you have water (Berawara known for drought and empty wells) and that you have a secure access to "your" land written into a contract with the Kepala desa at least. Then get the now owner of the land to get your IMB - no IMB now buy his land - he knows the locals all that have to agree to you being there and building so let it be his headache. Build it yourself if you have the time - it's great fun. Get a contractor if you hate your money.

Buy a pre-built if you have the dosh and don't have the time or enjoy the building.

 

[sunset_007]

Before you do any buying first check to make sure you have water (Berawara known for drought and empty wells)

Droughts on a tropical island?
Are these droughts by mother nature or just depletion of aquifers by a corrupt agri system?

1. If Berawa suffers from any drought, then is all of west Bali between Tanot Lot to Kuta, and west of Denpasar, susceptible to water shortages?
2. How elaborate is the water system provided by the government municipalities outside of Kuta? Berawa seems close enough to a large populous area to justify a water system.

 

[sunset_007]

Build it yourself if you have the time - it's great fun. Get a contractor if you hate your money.

Buy a pre-built if you have the dosh and don't have the time or enjoy the building.

I have a quote to custom build for 1.5 billion from a home builder. Another builder offers 5 different cookie cutter floor plans, and I wonder if warranties can be enforced, if they offered a 5 year warranty.
To do it alone by hiring local resources can be a headache I think, as you need to be onsite everyday to make sure no shortcuts are done.

 

[Markit]

Yep, droughts on a tropical island. Ask your neighbors. I know someone that got a cheap house but ended up paying 1million+/week to water carted in.

Warranties are difficult/impossible to enforce. You either will enjoy it or not but if you hate your money get a contractor. Again ask what the neighbors have done and if there's anyone they can recommend - you're more likely to get good advise from someone that will have to stand up for it in future because they live near you...

Forget all the things you "know" from visits to Bali and that you bring with you from where ever. Take time to make a house you will love and you will love it - if you only want somewhere to live, buy something finished.

 

[Balifrog]

OP mentions retiring. I dont know his age, maybe he is.one of those lucky young retirees, but IMO if over 60 forget about buying and stick to renting.

 

[Juggler]

thx for the advice guys. btw im 57 so I have a few good years left....I hope

 

[Juggler]

Also I am popping over on Wednesday 5th for a couple days, so if anyone is in the Canggu / Berawa area and would like to catch up so I can pick ya brain..Im keen and the bevies on me

 

[Bagus Kusuma]

So Impressive Mr Markit!

Anyway Mr Juggler, i able to be your Nominee if you need then

 

[Samsyk]

I guess you will have to extend but the price will be different and much higher. Why don't you just buy villa in Bali from the start? Anyway I would advise to talk to Tranio as they have huge experience in Indonesia and might give you a good and free advise.

 

[tel522]

I guess you will have to extend but the price will be different and much higher. Why don't you just buy villa in Bali from the start? Anyway I would advise to talk to Tranio as they have huge experience in Indonesia and might give you a good and free advise.

You men "lease" not buy , correct ?

 

[Samsyk]

You men "lease" not buy , correct ?

Yes, if you are not sure what is going to happen in 10 years, why to risk? Just lease a villa with a land in a district that you like and don't worry about anything.

 

[tel522]

Yes, if you are not sure what is going to happen in 10 years, why to risk? Just lease a villa with a land in a district that you like and don't worry about anything.

You of course are aware, that foreigners cannot buy property ?

 

[marklindsay]

That nominee can demand lots of things but Indonesian law states that land sales can only take place when the land certificates are made available. You buy land, you hang on to the certificates and you nominee can whistle...

In reality if your relationship with your nominee (which is based on mutual trust and advantage) has fallen to the point you describe then you will have problems. As I've said over many years here the best nominee is as follows: someone with a family, a respected member of the local community with good name, religious and in a good job. Pick someone like that and you nurture him (sorry, only men need apply in this society) and you will have a productive and mutually supporting relationship for years to come. As foreigners here we all need local assistance to smooth the way on occasion.

Thanks Markit.
From your reply, I understand that if one holds the title deeds/papers, the Indonean nominee is unable to sell or dispose of the property?
Thanks again

 

[Markit]

The "owner" or nominee can request alternate/replacement certificates on your/his land in the case of the old ones being destroyed, for instance in a fire. I'm informed that the owner (you) will only be informed of issuance of new certificates in the case of your name being on the originals (kept at the Kantor) with valid contact details and you must be a valid part of the agreement. For example if your name is on the original certificate as guarantor/creditor (person that loaned the nominee the money to buy the land) and that loan/mortgage is still outstanding.

But please check this all out with a professional before signing on the proverbial dotted line.

 

[marklindsay]

Thanks
Appreciated.

 

[Jerry Johnson]

Buying property with a Nominee Agreement is using a local to purchase freehold property in his name and enabling you to have all the joys of ownership in a country that doesn't allow foreigners to own it. Another option to own property here is to buy it using a PMA company setup to "front" for the ownership. You can search this and many other forums for further detailed information on this subject. Needless to say many will have negative opinions on the "legality" of the option but as I've said above many have used it and are just fine. Yous Pays Ur Money and Takes Ur Chance!

Has anyone used or know of a PMA company? If a PMA is used does it still have the minimum amount of property value requirement for foreigners?
This sounded like a better way to go and haven't seen much about it so far.