In Reply to: buying property posted by Julstone on Tuesday, 30. August 2005 at 11:52 Bali Time:
There are several ways to buy property in Bali. The main thing to remember is that no matter how you go about it, if push comes to shove and the Indonesians want it back you are in deep and expensive strife! Always remember that a FOREIGNER CANNOT LEGALLY OWN OR SIGN ANY DOCUMENT IN INDONESIA.. (that is right, it is actually ILLEGAL to go out & rent a motorbike to ride round on)
No matter which way you go about it you will pay maybe 30 to 40% more than any local, for each and every part of the whole exercise, but as with anything, the cost is relevant to the return!
Having said all that, the simplest, cheapest and MOST risky is to have an Indonesian nominee, wherein the title and ownership is totally Indonesian, and you just stay there happily until he/she gets pi**ed off and wants you out! The simplest way to protect yourself in this arrangement is to have a loan agreement drawn up by a local notary, making sure it is in both English and Indonesian and have someone translate it for you..wherein the Indonesian acknowledges that there is a loan from you, and in return the Indonesian "owner" grants YOU irrevocable power of attorney over the subject property for the full term of the loan. Problem.. he/she gets married or dies.. agreement is kaput, and nearest family can take control of the property.
Safer way is to have an offshore investment company, registered in Indonesia... and Milton from Indonational Restaurant may be able to advise you on this far better than we can. It is expensive, but we believe it to be financially safer.
Either way, it will all be roses until something goes wrong, or the Indonesian gets jealous, then you are up the proverbial creek in a canoe with no paddle!
Tread carefully, and the best of luck.