Leasing land and building a small lumbung hotel

[littleanna]

Hello everyone, I am sorry if I posted this thread in the wrong forum but I just need some help please.
We just came back from Indonesia and fell in love with Gili Trawangan. We have met a local guy who was leasing the land and said that he can lease it to us as long as we need, even 90 years. He quoted us 30million IDR per year for 1.4 are, payable every 10 years. Ideally we would like to build ourselves a small house as well as a few 1 room en suite lumbungs to rent out, we are not looking for a massive income business, just a nice place to live and a few lumbungs to keep us occupied and bring some small profit. Can you please advise if the price quoted sounds about right? How much would that be to build 1 lumbung like on the photo? Is 1.4 are enough space? We have seen the land but not sure how many buildings we can fit there, the owner says 4 villas but I doubt it. How long does it take to build a lumbung? Can you recommend any builders/architects?
Thank you everyone for answering

 

[harryopal]

Good morning littleanna,

It sounds a lovely idea but fraught with serious and complicating possibilities. It may be that the gentleman you met is genuine but from reading this forum and the expat.indo.org forum it becomes apparent that... there's many a slip twixt the cup and the lip. I would suggest that you peruse these two forums for anything to do with building and real estate and read it carefully. Meantime someone is bound to pop up with some more specific and helpful advice. Good luck.

 

[Juggler]

to my way of thinking 30 mil per year seems very high for there, also 140sqm block wont fit to much on it...also as Harry says...be careful in whom you put your trust in...everyone in RI wants to be a real estate agent...who 's land it actually is, is but a mere technicality

 

[spicyayam]

Sounds nice but will probably end up being more of a headache than it is worth it. It seems like there are lots of ownership problems on the Gilis and there is a chance the person you are renting it from doesn't even own it himself. There is probably little chance of getting it set up legally which will lead to problems getting appropriate visas and so forth.

 

[littleanna]

Thank you very much for your replies. This gentleman showed me the land registry certificate and surely solicitor would have to check everything anyway? Or are they not competent? I managed to get the price down to 20 million per year and he said we could fit 3 lumbungs plus a small pool. We could afford moving and living in Bali/Gili just by letting our house out, but we just want something to do rather than just sit by the pool, need some headache haha

 

[tel522]

Be aware , dodgy certificates exist ,also dodgy lawers ,I was present at a hotel purchase here when the so called lawyer wanted a backhander of 1 billion rups , the deal of course did not complete .

 

[littleanna]

So what do you do? People rent land somehow

 

[Markit]

Go live on the Gillis for 6 months and you will be bored to tears. There is absolutely nothing to do there but watch the rats climb coconut trees. If you feel the pull of the islands then go for Bali it's large enough that even after 10 years here I'm still finding new things to see and do and the infrastructure with property is much more straightforward and mature.

 

[littleanna]

Thank you Markit, you are right, I think Gili could be too quiet for us after a while. We are planning to got for 6 months to Indonesia next year so it will be easier to decide where we would like to settle down. Thank you everyone for replies it has been really helpful.

 

[spicyayam]

I think good advice from Markit. I think it is a good idea to live in a place for at least 6 months before making any larger financial decisions.

If you are looking at any real estate investment in the future, I would recommend getting a due diligence check by an independent notary/lawyer of the sale.

 

[ronb]

Thank you very much for your replies. This gentleman showed me the land registry certificate and surely solicitor would have to check everything anyway? Or are they not competent? I managed to get the price down to 20 million per year and he said we could fit 3 lumbungs plus a small pool. We could afford moving and living in Bali/Gili just by letting our house out, but we just want something to do rather than just sit by the pool, need some headache haha

3 buildings and pool on 1.4 are is unbelievable. Draw your self a scale plan and check it - they would be smaller than dolls houses I reckon. This all suggests to me the guy you are talking to is not reliable.

 

[Markit]

There's lots of pre-built to buy on Bali and if you walk into something that has been well run and looked after then you can spend your money with a good conscience. If you come up to East Bali I can show you several that I personally know.

 

[mugwump]

Another crucial issue is the distance of the structure from the beach. If it has a foundation it must be 100 meters from the beach according to RI law. Although exceptions exist, you must have a govt. building permit to make it legal.