Arranging and Financing a Mortgage in Bali
Monday, March 05, 2007
My friend George had just arrived from his vacation in Bali for a couple of months. Not a true vacation, actually, since he is a contributor journalist for the local traveling and pleasure magazine. He was assigned a task to write the latest story about that beautiful island after being ruined by two terrible blasts from terrorists. Twenty one pages of articles and photos made up his complete story about Bali through his sight and research.
During his stay, while doing his investigation, he also did a little research about financing a mortgage in Bali. Undeniable, the beauty and the mystical sense that he experienced, grew some kind of ‘homesick’ to the place. He felt that he started to have the sense of possession to the island, so planning for relocation real estate in Bali was something worthy.
But, something was not as easy as it thought. For foreigners, just like George, who often dream about owning their own home in Bali a quite difficult. There are possibilities but have your paper work in order would be a term of must. In Bali (which is in Indonesia) it’s almost impossible for foreigners to buy property and put their name on the title deed. It must be in the name of an Indonesian, rather than the person applying for the mortgage. The fact, that a foreigner cannot obtain a freehold title for land in Indonesia, the name of a local ‘nominee’ had to be on the title document.
The solution this problem is resolved by the ‘Right of Use’ certificate that allows foreigners to own land in Bali and elsewhere around Indonesia. The certificate is valid for 25 years and extendable up to 100 years. With this structure the foreigner’s name is on the title deed and is eligible for a mortgage. Expats should have no trouble in securing a mortgage in this manner.
George hasn’t applied for the ‘Right of Use’ certificate yet since he hasn’t enough resources to do that. He said, he might come back again for the next couple of years to arrange it. He knew that it wasn’t as easy as in the United States where you can easily find mls real estate, homes for rent, and foreclosures in any of your desired area.
During his stay, while doing his investigation, he also did a little research about financing a mortgage in Bali. Undeniable, the beauty and the mystical sense that he experienced, grew some kind of ‘homesick’ to the place. He felt that he started to have the sense of possession to the island, so planning for relocation real estate in Bali was something worthy.
But, something was not as easy as it thought. For foreigners, just like George, who often dream about owning their own home in Bali a quite difficult. There are possibilities but have your paper work in order would be a term of must. In Bali (which is in Indonesia) it’s almost impossible for foreigners to buy property and put their name on the title deed. It must be in the name of an Indonesian, rather than the person applying for the mortgage. The fact, that a foreigner cannot obtain a freehold title for land in Indonesia, the name of a local ‘nominee’ had to be on the title document.
The solution this problem is resolved by the ‘Right of Use’ certificate that allows foreigners to own land in Bali and elsewhere around Indonesia. The certificate is valid for 25 years and extendable up to 100 years. With this structure the foreigner’s name is on the title deed and is eligible for a mortgage. Expats should have no trouble in securing a mortgage in this manner.
George hasn’t applied for the ‘Right of Use’ certificate yet since he hasn’t enough resources to do that. He said, he might come back again for the next couple of years to arrange it. He knew that it wasn’t as easy as in the United States where you can easily find mls real estate, homes for rent, and foreclosures in any of your desired area.
Labels: bali
posted by Daniy @ 11:56 PM,
