How is it that a thatched roof two bedroom villa with a ten foot swimming pool in seminyak costs $300,000 USD. That is rediculous. The peolpe selling these properties and the owners themselves must be making a killing. Labour and materials are cheap in Bali, right? How can a 2 bdrm villa with a dinky ass pool be $300,000 USD. I hope it would be outright ownership and not some lease. Is anyone experienced in these matters?
Real Estate Prices on Bali
- Thread starter UluwatuWaves
- Start date
Just found this information about real estate on Bali... it is a bit daunting, they require you pay an indonesian citizen 150,000,000 Rp./month, are they joking or is it 150,000 per month. Who are these people?
It is, for now, impossible for a foreigner to own property in Indonesia. There is a chance that this will change in the future. The Indonesian government has taken a more and more flexible point of view on this matter. In the mean time you will have to use a contract that is strong enough to give you the legal protection you need for your property. The advantage of this contract is that you don't have to pay the 5% handling tax. Another advantage of this contract is the simple adjustments needed in the contract when you want to buy a house with other persons. (time-sharing) In Indonesia the land has to be registered in the name of an Indonesia citizen. We can use someone with whom we have already done business with for several years, and has long proven to be 100% trust worthy, or you can use an Indonesian person you know. We offer you a legal construction that will give you full protection.
The contract is made out of 4 parts that contain the agreements of cooperation. According to Indonesian law there has to be a balance between the two parties. Our contact will give you his services and for that you will honor him namely in payments. You will pay him Rp. 100.000,- per month for his legal protection for your property, which will be at a rate of Rp. 8.000,- or approximately 12,50 Euro. In this way you have created a balance according to Indonesia law.
Contract Part 1 - Describes that the foreigner will supply the money to the Indonesian citizen in order to buy the land and the house on the land. The Indonesian citizen will give, out of free will, the land and house on it permanently to the foreign citizen to take use of it as his home. The Indonesian citizen is owner, so he has his share of responsibility in care of the property. All mail that is related with the land and house will come through him to you, the bills for electricity and water will be directed to him too. For this he will receive payments as described above. He will also receive 5% of the profit made when you decide to sell your property. Further it states that the Indonesian citizen has given you his permission for selling, renting, and eventual changes to the house. There are procedures of arrangements in the contract that have to be made in case your properties are inherited, and that the cost for water, electric, and property taxes (20 Euro per year) will be the responsibility of the foreign citizen.
Contract Part 2 - This part describes in detail the actions that have to be taken when you want to sell your property and that the Indonesian counterpart fully gives his/her permission to sell the property.
Contract Part 3 - Here it says clearly that the foreign citizen is allowed to lease or rent out the property.
Contract Part 4 - This part describes that, when it is possible for the foreign citizen to become owner of a property when the Indonesian law changes, the Indonesian counterpart will have to abide by his duty to help / cooperate in changing the contracts so you will be owner of the property, and in case there is a change in the law that would negatively effect you, that the contract of agreements with your Indonesian counterpart will be changed into a lease contract for a long time period of 50 years with the right and option for extending it. If you at any time decide to stop your contract with our contact, and cooperate with another Indonesian counterpart, the Indonesian has to cooperate. In this circumstance it is your duty to pay him his losses, namely his monthly payments for the period of 25 years at once that in 25 x 12,50 x 12 = 3.750,- Euro/Dollar on a rate of 8.000. You also will protect yourself in this way from the chance of a higher cost relating to the percentage of extra profit made by selling the property as this can not be higher than the price you pay when stopping the contract!
It is, for now, impossible for a foreigner to own property in Indonesia. There is a chance that this will change in the future. The Indonesian government has taken a more and more flexible point of view on this matter. In the mean time you will have to use a contract that is strong enough to give you the legal protection you need for your property. The advantage of this contract is that you don't have to pay the 5% handling tax. Another advantage of this contract is the simple adjustments needed in the contract when you want to buy a house with other persons. (time-sharing) In Indonesia the land has to be registered in the name of an Indonesia citizen. We can use someone with whom we have already done business with for several years, and has long proven to be 100% trust worthy, or you can use an Indonesian person you know. We offer you a legal construction that will give you full protection.
The contract is made out of 4 parts that contain the agreements of cooperation. According to Indonesian law there has to be a balance between the two parties. Our contact will give you his services and for that you will honor him namely in payments. You will pay him Rp. 100.000,- per month for his legal protection for your property, which will be at a rate of Rp. 8.000,- or approximately 12,50 Euro. In this way you have created a balance according to Indonesia law.
Contract Part 1 - Describes that the foreigner will supply the money to the Indonesian citizen in order to buy the land and the house on the land. The Indonesian citizen will give, out of free will, the land and house on it permanently to the foreign citizen to take use of it as his home. The Indonesian citizen is owner, so he has his share of responsibility in care of the property. All mail that is related with the land and house will come through him to you, the bills for electricity and water will be directed to him too. For this he will receive payments as described above. He will also receive 5% of the profit made when you decide to sell your property. Further it states that the Indonesian citizen has given you his permission for selling, renting, and eventual changes to the house. There are procedures of arrangements in the contract that have to be made in case your properties are inherited, and that the cost for water, electric, and property taxes (20 Euro per year) will be the responsibility of the foreign citizen.
Contract Part 2 - This part describes in detail the actions that have to be taken when you want to sell your property and that the Indonesian counterpart fully gives his/her permission to sell the property.
Contract Part 3 - Here it says clearly that the foreign citizen is allowed to lease or rent out the property.
Contract Part 4 - This part describes that, when it is possible for the foreign citizen to become owner of a property when the Indonesian law changes, the Indonesian counterpart will have to abide by his duty to help / cooperate in changing the contracts so you will be owner of the property, and in case there is a change in the law that would negatively effect you, that the contract of agreements with your Indonesian counterpart will be changed into a lease contract for a long time period of 50 years with the right and option for extending it. If you at any time decide to stop your contract with our contact, and cooperate with another Indonesian counterpart, the Indonesian has to cooperate. In this circumstance it is your duty to pay him his losses, namely his monthly payments for the period of 25 years at once that in 25 x 12,50 x 12 = 3.750,- Euro/Dollar on a rate of 8.000. You also will protect yourself in this way from the chance of a higher cost relating to the percentage of extra profit made by selling the property as this can not be higher than the price you pay when stopping the contract!
Hmmmm...
Seminyak is relativly "expensive", land prices are high, and most of it is leasehold...
Villa projects come up like mushrooms there... Further north of Seminyak, Canggu etc, will at some day go the same way...
And, the area around the newly planned airport, Negara, will not take to long too, is my guess....
Some people say that there are too many villas projects, others, both buyers and developers, believe in it, rental income seems not too bad here and there.
Ofcourse, you can buy a few cheap sqm somewhere else, and build a cheap house, some people here on the forum have done that.
I heard of a local here, he bought 1 are of land at 30 million, allmost on the beach, here, and build himself a house for 20 million rp...
A beach house for a something like 5500 USD, not bad
Seminyak is relativly "expensive", land prices are high, and most of it is leasehold...
Villa projects come up like mushrooms there... Further north of Seminyak, Canggu etc, will at some day go the same way...
And, the area around the newly planned airport, Negara, will not take to long too, is my guess....
Some people say that there are too many villas projects, others, both buyers and developers, believe in it, rental income seems not too bad here and there.
Ofcourse, you can buy a few cheap sqm somewhere else, and build a cheap house, some people here on the forum have done that.
I heard of a local here, he bought 1 are of land at 30 million, allmost on the beach, here, and build himself a house for 20 million rp...
A beach house for a something like 5500 USD, not bad
In the area where I live, it common to pay the nameholder 100.000 rupiah per month for his or her services, as well as 5% of the profit made in case of a sale.
My wife acts like a nameholder for a foreigner here in Singaraja like that.
Its pretty common, and very workable, many many properties are bought by foreigners with such an arrangement.
Its pretty safe as well, as long as the nameholder has no malintent. People that are after you money, may try to make life difficult for you. I heard a few bad stories....
You can read some previous discussions here:
House Prices
Land Ownership
Building a House
Advice Needed
Thanks bert for the details and info.. i have been to seminyak before but had no idea it was any more expensive than any other area. Why is it more expensive than other areas? Is it the proximity to kuta and legian?
Yes, as Bert mentions, “the Yak” as it is called, is considered upscale with lots of trendy shopping and restaurants. I agree, the real estate there is considerably overpriced.
I have found nice, relatively sizeable oceanfront homes and villas on the north coast of Bali (primarily in the Lovina-Singaraja stretch) for US$50-60K. Similar homes in the southern tourist areas can be 4-5 times as much. It's a bit off-putting, but real estate in Bali is no different than that anywhere else. It's about location, and it's about supply and demand. If buyers wouldn't pay those prices, sellers wouldn't put those price tags on the properties!
To be honest, land prices in Bali are cheap. Compared to a similar market such as Thailand around Phuket and Koh Samui my gestimate is prices are about 50% cheaper. And like everywhere they are determined by supply and demand. In Western cultures cashed up baby-boomers are looking for somewhere to retire; a little piece of paradise. They have superannuation, and want a lifestyle that has luxury and the exotic, and Seminyak provides it.
Exotic? What is exotic about the Yak? Most of the villa developments there are large compound like arrangements where all your neighbors are other westerners.
Let me take this discussion a few steps further, while risking the opening of a “Pandora’s box.”
Uluwatu’s initial post was totally dead on target. Property in Seminyak is way over priced, and this has nothing to do with location, location, location, but rather it has everything to do with marketing, marketing, marketing. For location, the Yak has little to offer.
I’ve looked at several of these Yak “villas” which in my view were simply cookie cutter replications of the villa next door. Sure, they are mostly nicely built and with all the conveniences any westerner would like, but I often wonder if they are more suitable for time share property development?
If one takes the time to study the real estate and “villa” development in the Yak, one will read promises and even guarantees of 15 to 30% annual return on your investment on these properties from rental income. Yah, right!
Nice try “shebitme” but I have to ask...did you buy one of these over priced villas, or are you involved in marketing them?
Uluwatu’s initial post was totally dead on target. Property in Seminyak is way over priced, and this has nothing to do with location, location, location, but rather it has everything to do with marketing, marketing, marketing. For location, the Yak has little to offer.
I’ve looked at several of these Yak “villas” which in my view were simply cookie cutter replications of the villa next door. Sure, they are mostly nicely built and with all the conveniences any westerner would like, but I often wonder if they are more suitable for time share property development?
If one takes the time to study the real estate and “villa” development in the Yak, one will read promises and even guarantees of 15 to 30% annual return on your investment on these properties from rental income. Yah, right!
Nice try “shebitme” but I have to ask...did you buy one of these over priced villas, or are you involved in marketing them?
Hey Y'all!!! Just got back from some hunting out in the Shenandoah about 2 hours drive west of DC. Sanur, a two bedroom apt. in DC can be very expensive if you want to live in a place like Georgetown and nice areas of NW DC, i think Georgetown has it's since of culture and in someways is like Seminyak with out the asian influence but all the shops and tourist things. But G'Town maybe two bedroom for $2,000, if your lucky! Seminyak is quite like G'town now that I think of it but Georgetown probally has more history since it is quite an old area. Not taking into account the architecture and such in the "Yak" as Roy states. I have been to agung up on the road near where that restaurant overlooks a section of road and the valley where a lot of hawkers are stationed. It is a beautiful view. Are the beaches on the "North Shore" mostly dark colored sand? seminyak, probably is out of my league for now. Although it would be nice to be able to just drop half a mill. on a nice home in Bali, oceanfront preferably.
Yeah, so i am looking to spend as little as possible under $75,000 and I want to be close to the good waves and vibes, maybe Bukit. I also dont want neighbors for 100 miles :lol: Just relatively in a nice area but not compoundish and all on top of each other like in the "Yak." I guess it doesn't matter living in the "yak" that you could probably hear your neighbors having sex if they are making enough noise because it is so built up. Deffinitely not what i am looking for especially if these places are being rented out all the time. What about Canggu or Padang Bai?
Hi Roy. No we haven't bought the Yak villa dream. Our land is on a little river inland from Caangu. Quiet location, nice little village, and we own the access road to the land so other development is restricted. We bought it because of the location. As well as the physical aspect of the land it is also close enough to te Australian International School and Caangu Community School if we decide to send our 5 year old there. Not far from Seinyak too, which is fun to visit. Plus the surf beach at Caangu.
As well as that, we think as an investment it will do alright, meaning that it will appreciate in value at better than 8%, which if we need to sell at some time in the future is important to us.
Have had a look at a few of the developments, and agree with you that they resemble time-share properties. "Neutral" in character, and not really suited to being a home. But from suburban anywhere they certainly are exotic, as is Seminyak, even if it is moch-exotic. Alang-alang on the roof, a stone carving over there, and a nice little pond in the corner. A lot of making a price is marketting, and exotic is big on the brochures because that is what people are looking for. Mind you, I do enjoy Seminyak. Some very nice places to eat.
As well as that, we think as an investment it will do alright, meaning that it will appreciate in value at better than 8%, which if we need to sell at some time in the future is important to us.
Have had a look at a few of the developments, and agree with you that they resemble time-share properties. "Neutral" in character, and not really suited to being a home. But from suburban anywhere they certainly are exotic, as is Seminyak, even if it is moch-exotic. Alang-alang on the roof, a stone carving over there, and a nice little pond in the corner. A lot of making a price is marketting, and exotic is big on the brochures because that is what people are looking for. Mind you, I do enjoy Seminyak. Some very nice places to eat.
As you can tell by my name, i want to be as close to Uluwatu for those early morning sets. What about the bukit? Shebitme, seminyak is not really exotic but rather trendy in my opinion. The Bukit has so much open land for lease with good ocean viwes. i dont want to be in a villa compound with thirty villas. I want my own piece of land where you can run outside naked anytime and not have to worry about jack.
Re: RE: Real Estate Prices on Bali
Nice dream. It is a dream that many westerners have, which is what has driven prices up anywhere with ocean views, which makes proces a premium. Especially in exoti (excitingly strange) locations. The lowest cost for ocean front/view land is in the North from what I have seen, away from perfect surf and white sand beaches. Location location. Plus of course further from the lure of international flavour that you get in Seminyak.
We used to visit a village in Northern Sumatra which became popular, especially with German and Dutch tourists. They loved the freedom, especially the sense of that you could run around (semi) naked anytime. Gradually we saw the women of the village bathing less in the river and other small social changes occuring. They were uncomfortable with bikini clad girls drifting by on tyres and men and women covorting together. You might need a big block of land or high fences if you want the freedom to run around naked anytime.
UluwatuWaves said:
Nice dream. It is a dream that many westerners have, which is what has driven prices up anywhere with ocean views, which makes proces a premium. Especially in exoti (excitingly strange) locations. The lowest cost for ocean front/view land is in the North from what I have seen, away from perfect surf and white sand beaches. Location location. Plus of course further from the lure of international flavour that you get in Seminyak.
We used to visit a village in Northern Sumatra which became popular, especially with German and Dutch tourists. They loved the freedom, especially the sense of that you could run around (semi) naked anytime. Gradually we saw the women of the village bathing less in the river and other small social changes occuring. They were uncomfortable with bikini clad girls drifting by on tyres and men and women covorting together. You might need a big block of land or high fences if you want the freedom to run around naked anytime.
Hey all, thought I share an article I'm writing for escapeartist.com about the villa biz and my take on it - not done yet but I'll add the talking points I plan to finish with. I believe the best of these villa projects will offer most of what their buyers expect but many are more than questionable.
That said I also believe real estate is worth what someone will pay for it, at least for that person, and of course large luxury homes or villas in good areas, i.e. in the south or the Ubud area, are pricey - that's to be expected. Bottom line is that value of residential real estate should be based on using and enjoying it, particularly if it's for recreation. When considering investing in the new "boutique hotel" villas you should consider it to be a commercial real estate investment and that requires serious investigation of the financials and of the people behind the project. Watch out for blue smoke and mirrors :roll:
... Selling a house of cards – on the Island of the Gods!
Imagine … “an exceptional opportunity to live an exclusive life on a mystical island once reserved for the gods.”
or to know that the … “residence will offer residential pleasures others may only attempt to replicate…”
oh, by the way the … “Owner has the right to stay one month
(30 days) each year. 2 weeks in Low season and 2 weeks in high season…”
(actual quotes from a single real estate development promotional website)
Whenever I read the sales material for high-end villa complex developments sprouting up everywhere like weeds here in Bali I have to chuckle. The sales promos are designed to seduce buyers with intoxicating fantasies of a dream like paradise. Yes, you can get a life. And to ensure you live it to the max these developments will generously permit the “owner,” after having paid $300k and up, to actually occupy their holiday “home.” And for a full month of the year, as in the case above. Wow, somebody pinch me!
Before you laugh any louder, It’ only fair to understand the general concept behind such villa developments in greater detail and how these projects are marketed as a must have lifestyle accessory – a hot investment and a holiday home all in one tidy package. You may then understand how such a purchase may be, or merely appear to be, attractive. And while my aim is to be objective I do have many years experience building high-quality single family homes, including second or “vacation” homes, and I am biased as to the comparative long term value of my product.
The Concept -
The resort Villa complex developments here in Bali generally consist of a cluster of individual villa homes, some common facilities, professional management, and on-site staffing. Those purchasing a villa are allowed limited use of their villa and when in not in use by the owner, which is most of the time, the villa, along with all the others in the complex, is marketed for rental to holiday makers. In fact these developments are to be run like hotels, only with small houses instead of rooms. So buyers are buying into a “boutique resort” (the sales buzz) and ownership is often promoted more as an investment than a holiday home.
The villas themselves are typically 2 & 3 bedroom units, include a private pool, and often include a garden and other water features within a walled enclosure. The most common “common” facility is a restaurant but they often include a clubhouse or a gym, or both and more. Management responsibilities would include rental marketing, maintenance, along with management of the common facilities and staffing. In addition the management manages the money, the owners’ money, both coming and going. Ownership of the villas is typically leasehold, though some are available as freehold property.
The concept for these developments is in theory not unsound and there are a number projects on this beautiful island that are clearly impressive – superior planning and execution that’s also indicative of the quality management behind the project. However, there are literally hundreds of villa units within close proximity either planned for or in progress (that’s before and after the negative fall-out from the 2005 Bali bombing) creating intense competition for sales. Then know that regulation of the industry here is almost non-existent, and in particular for sales agencies and their marketing practices. Having read the financial projection the financial viability of many projects is questionable and making me suspect of the “professionals” involved in promoting them.
Own a Piece of Paradise -
Yes, I know these are typical flowery enticements used to seduce through fantasy those dreaming of a life in paradise. But now imagine that you can not only live the dream but also bank a bundle in the process. Where do you sign you ask?
*All I have so far and it is subject to edit, main points to add will include quality control and financials - expanding on the following:
How will all these "5 star" resort ammenities pay for themselves, and in particular the restaurants - no way most will make a going of it off a small villa complex that may tire of it. And what what about this newly trained staff? In all, I think there is potential for constant struggle in some cases and in that event I can imagine the vibe that will eventually surface.
Capital appreciation may suffer with the age of villa complexes, especially if rental returns fall short of expectations. And the projected rental returns being suggested; some are based on yearly occupancy rates of 50% and more - Get F'n Real.The security of the investment is assumed because it's part of a complex, but what happens when absentee owners bail when their interests start to fade or a combination of negetive things I have concerns with? An individual owner will have little control over matters that impact long-term value. If things do go bad they will likely proceed to guickly worsen.
Thus the House of Cards analogy.
That said I also believe real estate is worth what someone will pay for it, at least for that person, and of course large luxury homes or villas in good areas, i.e. in the south or the Ubud area, are pricey - that's to be expected. Bottom line is that value of residential real estate should be based on using and enjoying it, particularly if it's for recreation. When considering investing in the new "boutique hotel" villas you should consider it to be a commercial real estate investment and that requires serious investigation of the financials and of the people behind the project. Watch out for blue smoke and mirrors :roll:
... Selling a house of cards – on the Island of the Gods!
Imagine … “an exceptional opportunity to live an exclusive life on a mystical island once reserved for the gods.”
or to know that the … “residence will offer residential pleasures others may only attempt to replicate…”
oh, by the way the … “Owner has the right to stay one month
(30 days) each year. 2 weeks in Low season and 2 weeks in high season…”
(actual quotes from a single real estate development promotional website)
Whenever I read the sales material for high-end villa complex developments sprouting up everywhere like weeds here in Bali I have to chuckle. The sales promos are designed to seduce buyers with intoxicating fantasies of a dream like paradise. Yes, you can get a life. And to ensure you live it to the max these developments will generously permit the “owner,” after having paid $300k and up, to actually occupy their holiday “home.” And for a full month of the year, as in the case above. Wow, somebody pinch me!
Before you laugh any louder, It’ only fair to understand the general concept behind such villa developments in greater detail and how these projects are marketed as a must have lifestyle accessory – a hot investment and a holiday home all in one tidy package. You may then understand how such a purchase may be, or merely appear to be, attractive. And while my aim is to be objective I do have many years experience building high-quality single family homes, including second or “vacation” homes, and I am biased as to the comparative long term value of my product.
The Concept -
The resort Villa complex developments here in Bali generally consist of a cluster of individual villa homes, some common facilities, professional management, and on-site staffing. Those purchasing a villa are allowed limited use of their villa and when in not in use by the owner, which is most of the time, the villa, along with all the others in the complex, is marketed for rental to holiday makers. In fact these developments are to be run like hotels, only with small houses instead of rooms. So buyers are buying into a “boutique resort” (the sales buzz) and ownership is often promoted more as an investment than a holiday home.
The villas themselves are typically 2 & 3 bedroom units, include a private pool, and often include a garden and other water features within a walled enclosure. The most common “common” facility is a restaurant but they often include a clubhouse or a gym, or both and more. Management responsibilities would include rental marketing, maintenance, along with management of the common facilities and staffing. In addition the management manages the money, the owners’ money, both coming and going. Ownership of the villas is typically leasehold, though some are available as freehold property.
The concept for these developments is in theory not unsound and there are a number projects on this beautiful island that are clearly impressive – superior planning and execution that’s also indicative of the quality management behind the project. However, there are literally hundreds of villa units within close proximity either planned for or in progress (that’s before and after the negative fall-out from the 2005 Bali bombing) creating intense competition for sales. Then know that regulation of the industry here is almost non-existent, and in particular for sales agencies and their marketing practices. Having read the financial projection the financial viability of many projects is questionable and making me suspect of the “professionals” involved in promoting them.
Own a Piece of Paradise -
Yes, I know these are typical flowery enticements used to seduce through fantasy those dreaming of a life in paradise. But now imagine that you can not only live the dream but also bank a bundle in the process. Where do you sign you ask?
*All I have so far and it is subject to edit, main points to add will include quality control and financials - expanding on the following:
How will all these "5 star" resort ammenities pay for themselves, and in particular the restaurants - no way most will make a going of it off a small villa complex that may tire of it. And what what about this newly trained staff? In all, I think there is potential for constant struggle in some cases and in that event I can imagine the vibe that will eventually surface.
Capital appreciation may suffer with the age of villa complexes, especially if rental returns fall short of expectations. And the projected rental returns being suggested; some are based on yearly occupancy rates of 50% and more - Get F'n Real.The security of the investment is assumed because it's part of a complex, but what happens when absentee owners bail when their interests start to fade or a combination of negetive things I have concerns with? An individual owner will have little control over matters that impact long-term value. If things do go bad they will likely proceed to guickly worsen.
Thus the House of Cards analogy.
neil and I do own one of the villa on the beach at Lovina. We love it. Price comparison with australia, we could not buy a property for the same amount as here.
Shebitme, i have heard that land prices in the Bukit are cheaper than the majority of land in south Bali. i am not talking about buying a villa from some company but rather buying my own land and then getting the building permit and having a construction compnay build the house for me to my specifications. Yes i like the idea of renting something out to make back income but anyone who has experienced renting their own properties will know that NOBODY will treat a property they way it should except an owner of that property. People who rent dont care about the property like the owner does and there will be damage, guaranteed. That is the problem with renting out places, you never get it back in the condition you bought it in.
DCC, i found your insight and experience in Bali real estate market to be quite interesting. I agree that if your are paying someone "hometaker" basically to do what you would with the property while you wer livin on bali and then have this person take care of all the money, logistics, maintenance, and such of your property, that isa big postition of trust. I would want the guy to have the equivalent of a Balinese background check that way I would know if he was honest and not going to waste or even steal my money. It seems like this is a good idea or maybe not, but can you imagine moving to the USA or to Australia or somewher like that and your in the market to purchase land or property and they tell you that you can't purchase the property until you have a locals approval and his stamp on your contract. Not only that but he basically controls everything about the property and you have to give hime 10% of rental profit in addition to other fee's that you have to pay him. That is rediculous.
I know bert said early that this is how it is done in Indonesia since a foreigner cant outright own land or property in indonesia. this is outright stupid since all land belongs to God and not the indonesian governement. And the reality of the matter is that this is not the case in most of the world. In fact foreigners can outright own property and land in most countries except Indonesia and thailand, unless you are a bill gates or paul allen type and have the money to talk. i am not here to bust the government of indonesia or anything but it seems like their policies are backward and they need some serious help if they want to do anything to uplift there peoples and incourage foreign investment even more so than they do now.
DCC, i found your insight and experience in Bali real estate market to be quite interesting. I agree that if your are paying someone "hometaker" basically to do what you would with the property while you wer livin on bali and then have this person take care of all the money, logistics, maintenance, and such of your property, that isa big postition of trust. I would want the guy to have the equivalent of a Balinese background check that way I would know if he was honest and not going to waste or even steal my money. It seems like this is a good idea or maybe not, but can you imagine moving to the USA or to Australia or somewher like that and your in the market to purchase land or property and they tell you that you can't purchase the property until you have a locals approval and his stamp on your contract. Not only that but he basically controls everything about the property and you have to give hime 10% of rental profit in addition to other fee's that you have to pay him. That is rediculous.
I know bert said early that this is how it is done in Indonesia since a foreigner cant outright own land or property in indonesia. this is outright stupid since all land belongs to God and not the indonesian governement. And the reality of the matter is that this is not the case in most of the world. In fact foreigners can outright own property and land in most countries except Indonesia and thailand, unless you are a bill gates or paul allen type and have the money to talk. i am not here to bust the government of indonesia or anything but it seems like their policies are backward and they need some serious help if they want to do anything to uplift there peoples and incourage foreign investment even more so than they do now.