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|Buying Bali Property|
|Bali Property Investment|| |
Bali property investment has been a popular avenue of investment for many international investor. The current financial credit crisis in markets such as the US and Europe has caused some uncertainty in Bali property investment as many developments are funded by US and European banks. Key factors of interest for international investors choosing Bali property investment include:
Bali is one of many attractive places to live in Asia. Bali offers a great diversity of property investment opportunities from the beach to the mountains. Bali is well known for many things such as art, dance, the beaches, the scenery, and even the people. Similar to locations such as Phuket in Thailand, tourism plays a significant role in the success of Bali property investment. As one of the most popular tourist destinations in Indonesia, Bali attracts travelers from all over the world.
According to the Bali Tourism Board, a total of 2.2 million visitors came to Bali in 2009 (up 13% from last year). These tourists were mainly from Australia, Japan and China, accounting for approximately 20%, 14.3% and 8.9% respectively. After Bali suffered significantly from terrorist activity in both 2002 and 2005, the growth in tourism is a positive sign for Bali property investment as tenancy demand is healthier. The recent Colliers International market report on Bali shows an upward trend in occupancy rates for hotels across Bali.
Indonesian law recognizes several types of rights over real estate, however, to the foreign investor, the following rights are most relevant as these rights all authorize the use of land: i) Right of exploitation (Hak Guna Usaha HGU); ii) Right of building (Hak Guna Bangunan HGB); and iii) Right of use (Hak Pakai).
Leasehold Investment, where rights are negotiated with landowner for a period of up to 25 years .
PMA Foreign Investment Company Structure, allows a foreign corporation to own land without an Indonesian partner for a period of 30 years.
Indonesian Nominee Power of Attorney Agreement, which is basically a legal agreement requiring an Indonesian nominee to be registered as the owner .
The annual survey by Smart Travel Asia supports the popularity of Bali as a tourist destination. Their 'top holiday destinations' list has voted Bali as the number 1 destination for the last three years.
Bali has always been a top destination, but increasingly as foreigners are calling it home, whether it be retirement or work a bolstering expatriate population is growing. In recent years Indonesia has also continually increased bilateral ties with many countries. Indonesia is playing host to the 61st ‘International Real Estate Forum’ in 2010.
Obtaining property finance for a foreign property buyer is difficult as the name on the title deed has to be in the name of an Indonesian, rather than the name of the person applying for the mortgage. The right of use (Hak Pakai) certificate is one way for foreigners to get around this. Healy Consultants assists clients obtain international mortgages to support Bali property investment. Our firm works with international banks such as the Commonwealth Bank, ANZ Bank, DBS Bank and OCBC Bank to obtain competitive mortgage options.
Appointing and supervising a local lawyer. This is important to make sure the legal matters associated with Bali property investment are undertaken correctly and that the best interests of our client are taken care of.
Providing professional tax and accounting advice to ensure all tax obligations for Bali property investment are met.
International investors use the valuable property management services offered by Healy Consultants to save time and money. Such services include organizing property refurbishments and property maintenance, project managing the process of finding tenants, selecting property insurance, arranging property valuations and implementing appropriate property security requirements.
For further information on Bali property investment, contact firstname.lastname@example.org or telephone our Singapore office at (+65) 6735 0120.
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