Lombok, the new Bali

There are many locations in Indonesia where non native investors can get a lot of profits from buying property. However, Lombok and Bali are very good options for holiday property investment. Two decades ago, Bali was one of the hottest spots to buy holiday property in Indonesia. Now, Lombok entered the market and quickly became contender for tropical holiday property spot. Owning Lombok property is a great potential for any investors, including non Indonesian natives who want to get holiday property in one of its tropical islands. While Lombok may not be as famous as Bali yet, it has great potential for property development especially for holiday or surfer's accommodation such as resort, villa, bungalow, and even hotel.
Benefits of Getting Lombok or Bali Property
Lombok and Bali are ideal places to get holiday properties such as villas, cottages, or empty plots in strategic spots such as beachside or hillside areas. Here are the reasons:
• Lombok and Bali are favorite holiday locations in Indonesia especially among surfers and families. It makes them be good candidates for holiday properties such as surfer's lodging, villas, and beachside resorts. They also favorite destinations for honeymooners.
• Lombok and Bali have easy access; especially Lombok, Lombok already has an international airport that makes access to this area way easier. This prompts more people to visit Lombok and it makes Lombok as popular as Bali now.
• Lombok still has not been tapped as much as Bali or Jakarta by property investors. Therefore, investors can get really good prices for many properties such as empty plots or tropical villas on the beachside. There are also many areas that have not been explored yet, perfect for future development of holiday property project.
Is It Hard to Get Lombok Property?
Many foreign or non-native buyers, especially the new players in property business, may feel a bit taken aback from thinking of buying Lombok property, because they think that there will be many hassles in getting property for personal investment in this tropical island. However, there are many solutions of having a property investment in Lombok without dealing with hassles just because the buyers are foreigners. One of the common problems that often occur is about the low possibility to hold the title upon the property.
There are usually three common options for this problem. An investor can work together with a nominee in local area, lease the property for certain amount of time, or entering Foreign Investment scheme based on Indonesian laws and regulations about this particular matter. All of these solutions have legal basis and will not land investors in unnecessary difficulties from overlooked things or legal trinkets. However, sometimes foreign investor who wants to buy property for the first time in Lombok will still need help in all the necessary legal steps. In that case, working with property agent is the best option.
Nominee as Legal Representative for Investors
Foreign investors who are interested in buying Lombok property are often clueless about necessary steps in buying the property until it becomes theirs officially. Officially appointing a representative or nominee in Indonesia is a good way to buy property as an individual investor, not a company.
When an individual investor wants to have a property in Lombok, they can face problem such as not being able to hold the property title fully. In this case, a nominee can represent the investor during the purchasing process of the property, and then hands it over to the buyer rightfully. While it seems like too much hassle, a nominee is very helpful in order to make the property title handed fully, 100 percent, to the buyer from non native countries. This is actually a recommended legal option for foreign investors who want to have property in Lombok and Bali as individuals, not companies.
Investors can work together with the nominee, which can be an individual or a company, to obtain the property title right before purchasing. The nominee will get the property title legally after the purchase, and then they will give the title right to the buyer back after all the purchase steps are done. This is done through legal ways with attorney as witness, to make sure that the buyer gets his or her rights as the real property owner.
Why Investor Should Partner with a Nominee
Indonesia realty law and regulation does not allow an individual, foreign investor to hold a property title immediately after purchasing a property. Instead, the investor must follow the foreign investment scheme, in which the investor must open a business in Indonesia, or use a representative to hold the title after the purchase before the buyer actually gets the title of property. Working together with a nominee is a great option for foreign investor who wants to buy property in Lombok and Bali.
Here are some great reasons to work together with a nominee when buying property:
• Investor is able to buy property in Indonesia as an individual, not business group of company.
• Investor is able to get support when buying property as a non native buyer, especially when it comes to land hold with traditional or local laws.
• Individual investor is able to get profits from leasing, renting, or building a facility on the property, and the profits are 100 percents for them after the nominee handing the property title legally.
• Investor does not have to follow the Foreign Investment scheme according to Indonesian law, which requires the foreign investor to apply with business plan, proposal, and other detailed steps that individual investors do not have to do.
The nominee for foreign investor can be an individual or a company, and they will become an investor's partner until the time comes to hand the property title.
How to Find a Trusted Nominee
Buying a property in Lombok through a nominee (which can be an individual or a company) is not only legal, but also recommended for non native investors. The process is quick, safe, and investors can later hold the property title fully as individual owner, which is unlike the foreign investment scheme that mandates investors to be a business or company opened and operated in Indonesia.
Non native or foreign investors can ask for support from Indonesian property agent specializes in Lombok and Bali properties. The agent can help investors in obtaining all necessary documents, certifications and licenses, as well as dealing with legal attorney when the investors want to work together with nominee or local representatives that hold the property title in Indonesia.
If you are a non native investor that wants to get holiday property in Lombok and Bali, but is not experienced with all the hassles that come with it, make sure you get the right support from trusted property agent.
Nominee as Great Partner for Property Buying
Having a nominee helps foreign investors to own a property in Lombok or Bali with great services and facilities. With this help, the investor finally can hold the full title of the property, without having to become a company like in Foreign Investment scheme. The partnership is recognized with legal documents and proofs managed by specifically appointed attorney to handle all the legal things.
This partnership has been around in Indonesian property world for a long time.
Investing by Using the Name of a Company
As an individual, it might be a bit hard to obtain a piece of property by fully holding the title. Therefore, if the property has really big values for many years to come, many investors prefer to buy the property by using the name of a company, which makes it easier to obtain a title upon a property. In fact, this step is actually under Indonesian law, and the government encourages foreign investors to do it that way since this step gives benefits to both Indonesians and the investors.
Foreign Investment Scheme for Group Investor
Penanaman Modal Asing or PMA (Foreign Investment) is an investment scheme ruled under Indonesian Law about Foreign Investment Program, in which a foreign investor can hold the full title of a property (or several properties) as a company instead of individual. This scheme obligates the investor to have a business plan and create company or business in Indonesia, which later allows the investor to purchase property in Indonesian land without having to use representative or nominee.
To do this properly, a prospective investor must comply with Indonesian Law and do these important steps, among other things:
• Investor must have and submit a clear business plan, with capitals, goals, risks, potentials, schemes, business designs, and everything necessary.
• Investor must show how the business will bring benefits to the local and Indonesian economy, such as how the company will absorb local workforce, improve employment and local economy, add national revenues, and many more.
• Investor must have appropriate amount of money in Indonesian bank with good reputation and good credit tracks.
• Investor must officially declare the property bought in Lombok or Bali (or any other area in Indonesia, basically) as his or her company's property, not personal.
These steps are necessary if investors want to get their pieces of property in Indonesia without having to obtain partner, representative or nominee in Indonesia that must be bound with legal papers and documents. While this does not make the property an individual investment, but this is perfect if foreign investors want to hold the title upon the property.
Foreign investors are welcome to have property in Lombok and Bali, but to have it with full holding of the title, they need to invest in form of PMA or Foreign Investment scheme.
Property Agent to Help with Lombok Property Purchase
Foreign investors can ask for support from property agent in Indonesia that has specialized in Lombok and Bali property. With this agent, investors can get assistance and support when going through all necessary steps until the investor can get the coveted property. This support includes information about realty law in Indonesia, support in obtaining various certificates and licenses necessary in obtaining the property, assistance in choosing the right property investment decisions such as the type of product the investor must buy, and many more.
Real estate agent also helps investor in understanding unique aspects of land purchasing and buying in Indonesia, especially if they are related to local laws and traditions (such as the concept of passed-on land). Visit our site at http://estate-lombok.com/en if you interested in Lombok and Bali properties.