North Bali Real Estate
Franklin D. Roosevelt said “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” So the importance of investing in real estate cannot be over emphasized.
When an island is likened to heaven, it intrigues me and triggers my curiosity to know about it more. This is the case with north Bali in Indonesia. Its friendly weather, hospitality culture of the people, comfortable homes by the sea and in the mountains have made this island a destination for holiday makers and an irresistible investment opportunity for people interested in real estate.
The North Bali Real Estate market is increasingly attracting business moguls that are interested in taking advantage of the real estate portfolio that it is offering. So if you are looking to buy a home or invest in the property market in Bali and you are afraid of the restrictions the Indonesian law will pose to you, worry no more because we will guide you towards achieving your objective.
North Bali Real Estate – How You Can Buy a Property in Bali
There is no doubt that the Indonesian government has put some laws in place to restrict foreigners from overtaking their property market and to encourage and grow indigenous ownership. However, there are some legal steps one can take to procure property in Bali when vacant land for sale call is up.
The three essential laws that guide real estate in Indonesia are as follows:
- The right to build – Hak Guna Bangunan
- The Right to use – Hak Pakai
- The right to own – Hak Milik
North Bali Real Estate – Leasehold Agreement (long term renting)
Foreigners can buy or invest in properties in Bali through a leasehold agreement under Hak Pakai (right to use) as far as the property is not subsidized by government. This could be a long time lease under the name of the original owner of the property; which can last for a tenor of 25 years and can be extended to 75 years. Under this contract the property can be sub leased (rented) to others. However, if the lease expires, all rights return to the original owner as Hak Malik.
North Bali Real Estate – Leasehold (mortgage investment structure)
Another way for a non-indigene to buy a property is a combination of the above lease agreement and a first registered mortgage supported by several documents including Business Partner Agreement and Irrevocable Power of Attorney, Deed of Lease in Notarial Form, Testamentary Wills, and Deed of Lease in Notarial Form.
The high return on investment and capital gains has caused increase in price for property in Bali but its reputation as a safe nest for luxurious homes has kept demands rolling in. This island offers variety of choice to investors, depending on your budget. Many people are going into undeveloped places as it is the tradition of expansion and growth in real estate business.
Now that you know that you can buy property and you understand how to invest in real estate in Bali, the next thing is to engage an agent to search for your preferred type of property, negotiate price, deposit an agreed percentage of the amount, sign a letter of intent with the owner accepting the final amount, sign the power of Attorney agreement, collect a revised certificate and pay the notary of the property price. Hurray the property is yours.
There are also indications that the Indonesian government are beginning to relax their laws on foreigners owning property in other to encourage development. This is an signal that the market will open up more. So you can take the ‘early advantage’ to invest now and grow your investment over time. This has been a proven success formula in real estate business.
About The Author Of This Article
Rachel Stinson has always had a knack for writing, food, fashion, home improvement and sports. Blogging has combined all four for her with an added bonus of enthusiastic audiences. She expertly analyzes real estates, restaurant and online packaging stores Dignam.com with respect to pricing and people involved and can express her opinions in an unhesitant, engaging manner for all matters.