If you want to buy a villa in Asia, Indonesia is one of the top places to keep in mind. Not only it has a pretty affordable market, but you will be rather impressed with the return on investment as well. One thing to note is that in order to acquire a villa in Indonesia, you will have to be a resident. You can’t buy properties in Indonesia but you can acquire different titles that help you build physical structures on the property or lease it. This might not be the best option, but it really works to your advantage.
Understanding the way you buy a villa in Indonesia
The law is very different, however you can invest in the total security if you do the right approach and focus on results. If you want to complete this process adequately, you will need to work with a notary. You will notice there are 3 main rights of virtue in the land law regarding foreigners. Basically, the freehold can be acquired only by an Indonesian citizen, the right of use is provided for the initial 30 years or you can go for getting building rights only.
If you want to buy a villa in Indonesia, then you usually have 3 options. You can either work closely with someone that lives in Indonesia so they can sign in front of the notary under their name, then he will sign documents to give the property to you, these include a freehold contract, power of attorney, permanent right of use or a certificate.
You could go with the right of use, because you can still get rights for the property, but this is limited to only 30 years and you will have to renew. The leasehold is a rental contract for 25 years maximum. It’s signed in front of the notary, but you will be able to renew it. The extension term can also be negotiated, which is very helpful. This is very important to keep in mind when you’re trying to find villas for sale in Indonesia.
What about property prices?
The average square meter price will differ based on the location you choose. The average will be $2041 per square meter in Jakarta, but in suburban areas it will be around $1017, so the difference is rather significant. But you do need to study the market and see whether it goes up or down. Based on that you can figure out when and how to invest. If you choose to invest at the right time, you might actually be able to obtain some great results, so avoid rushing and invest wisely, then you will be fine.
It’s also important to think about taxes in Indonesia too. In many cases the taxes are rather significant, so you really have to figure out the total maintenance and tax costs. And of course, you also have to keep in mind the real estate agent tax which can be around 5% of the sales price, so quite a lot when compared to other locations. It’s important to take all this information into account if you want to buy a villa in Indonesia and you will have no problem finding the right option to suit your needs!