Bali real estate investment is vulnerable to the current financial credit crisis in markets such as the US and Europe as many developments are funded by US and European banks. Asia Property Consultants assists international investors with all aspects, including obtaining property finance, for their Bali real estate investment activities. Following are details of our firms services along with key factors of interest related to Bali real estate investment include:

Foreigners can undertake Bali real estate investment for residential purposes, commercial sector, or as a property investment. There are basically three options to legally acquire property in Bali. These are:

Using an Indonesian nominee - this is the most common way for foreigners to purchase property in Bali. The nominated Indonesian is registered on the land title deed. The Indonesian nominee also completes three other legal agreements with the foreigner, which are the loan agreement to show the foreigner has lent the nominee the funds for the transaction, an irrevocable power of attorney which giving the foreigner the authority to sell, mortgage, lease or otherwise use the land and a permanent right of use to give the foreigner the right to occupy and use the property.

Using a Penanaman Model Asing (PMA) company - A PMA company can be 100% owned by a foreigner but is valid for 30 years with subsequent extensions of 20 years and 30 years an option. This form of ownership is commonly used for hotel properties.

Leasehold title granted to a foreign individual - where a foreigner is based in Indonesia, satisfying conditions of holding a KITAS working visa, they can enter into a 25 year lease renewable for a further 25 years. This is a direct lease between the foreigner and the local owner. This is a common option for retirees relocating to Bali or foreigner companies needing a residence for their employees working in Bali.

Indonesian law recognizes several types of rights over real estate. For foreigners interested in Bali real estate investment, the most relevant rights are: i) Right of exploitation (Hak Guna Usaha HGU), ii) Right of building (Hak Guna Bangunan HGB), iii) Right of use (Hak Pakai). These rights are associated with authorizing the use of the land.

The annual survey by Smart Travel Asia illustrates the popularity of Bali as a tourist destination. Their 'top holiday destinations' survey has Bali the as number one destination for the last three years. Bali offers a great diversity of real estate investment opportunities from beach side to the mountains and is famous for many things such as art, dance, the beaches, the scenery, and the people.

Figures from the Bali Tourism Board, show 1.5 million tourists visited Bali between January and September 2008. This was a 20% increase on the same period in 2007. 34% came from Australia or Japan, 27% of visitors came from Europe while just 9.5% were from ASEAN region. The growth in tourism is a positive sign for Bali property investment after Bali suffered significantly from terrorist activity in both 2002 and 2005. The recent Colliers International market report on Bali shows an upward trend in occupancy rates for hotels across Bali.

Similar to locations such as Phuket in Thailand, tourism plays a significant role in the success of Bali real estate investment. Bali attracts travelers from all over the world and Bali real estate investment has a price advantage over destinations such as Phuket where real estate can be more expensive.

Using a local lawyer is important when undertaking Bali real estate investment to ensure all the legal matters are undertaken correctly and that the investors best interests taken care of. Asia Property Consultants assist clients by appointing and supervising an experienced lawyer for the real estate transaction.

Asia Property Consultants provides professional tax and accounting advice to ensure all tax obligations for Bali real estate investment are met.  Property taxes include transfer tax, stamp duty, land and building transfer duty and registration fees.

Asia Property Consultants offers clients valuable property management services to help clients save time and money. Such services include organizing property refurbishments and property maintenance, project managing the process of finding tenants, organizing property insurance, arranging property valuations and arranging for property security requirements.

Obtaining property finance is an important step for investors undertaking Bali real estate investment. Asia Property Consultants assist clients in obtaining competitive property finance for their Bali real estate investment in the following ways:

Locating international mortgages to support Bali real estate investment. International banks our firm works with on our clients' behalf include NAB, Commonwealth, HSBC and ANZ Bank.

Our staff will compare and contrast different property finance options with our clients, to ensure they obtain competitive finance to support their Bali real estate investment objectives.

Negotiating banking terms and conditions on behalf of our client.

Having obtained property finance, Asia Property Consultants assists clients to open personal and corporate bank accounts for receiving rental income and settling mortgage repayments for their Bali real estate investment.

v)

If necessary, preparing business plans and cash flow projections to maximize the probability for approval of the mortgage application.

vi)

Acting as an intermediary between the bank and our client during the entire process of Bali real estate investment.

For more information on Bali real estate investment, call our Singapore office at (+65) 67350120 or contact email@healyconsultants.com