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FAQS

  1. How to become a property owner in bali

    2. The exponential growth of balinese property value is very attractive for foreign investor.stories about difficulties of owning property in indonesia are common, and althought there are numerous committees discussing liberalizing ownership rules. Indonesia Law does not yet permit foreigners to privately own freehold property.

    • Freehold
    If you own property freehold ( hak milik ), means you own the building and the land it stands on. Your name is in the land registry. Foreigners are still not able to obtain freehold property. Only possible for Indonesian national.

    • Leasehold
    Leasehold ( hak sewa ) means you have a lease from the freeholder ( the landlord ) to use the property for any number of years, up to 25 years. The leaseholder has a contract with the freeholder, defining legal rights and responsibilites of either side. This method offers complete protection to both the lessor and lessee during the term of the lease, once the lease term has expired the agreement can be extended or the property reverts to the owner.

    • Corporate ownership

    Indonesian companies are allowed to hold the HGB title ( hak guna bangunan ). This is the right to build title. In this case the freehold title is handed over to the state and the company is given the possession of the property under right to use title for a period of 30 years with the right of extension.

    Foreign investors can have 100% ownership of companies. This is called a PMA ( Penanam Modal Asing ), the only form of company allowed for exclusively foreign investment. Foreigners can legally hold property by means of PMA, without the involvement of an Indonesian shareholder.

    • Hak Pakai, the “ Right of Use “

    Since march 2004 in effect in Bali, hak pakai can be issued to ( foreign ) individuals, but also to companies that are domiciled in Indonesia. Hak pakai is for people living in Indonesia. This does not mean that you can’t leave Indonesia, it just means that you spend a considerable time of the year in Indonesia.

    Hak pakai is an official certificate issued by the land offices. As soon as the hak pakai certificate is issued, the certificate has precedent over any other title the property may have.

    A foreigner can own only one hak pakai titleon his or her name at anytime. The certificate is valid for an initial 25 years, and can be renewed after that. Some companies offer prepaid renewals. It’s freely transferable to another name,so you can buy and sell existing hak pakai titles.

  2. Who manages the properties in the long term?

    3. You can choose to manage the properties yourself or have them managed by whomever you like. All our investors use rental insight currently.

  3. What if I want to manage them myself or used someone else?

    4. You are able to manage them yourselves if you wish and similarly you can move the agent that manages them if you wish. Rental insight is excellent at what they do and this is way we manage it all in house with them. But this is a choice you can make.

  4. How do I know you will get me good properties?
    We are very strict with the properties we buy.we share upfront our key rules and what we believe make a good investment and we never recommend a property unless it ticks all those boxes.

    5. We benefit when you are able to release funds and buy the next properties. Our profit comes from the long term relationship and with each extra propertyyou buy-so it is in our interests that you purchase more property. Getting the right properties enables us to do this.

  5. You are saying that we invest for the long term but I want to make income now?

    6. We have a product that will generate income today and also grow your portfolio. The more you are able to reinvest profits the more quickly your investment grows, but it is possible to have an income of 5% interest and still grow a long term income.