Brawa 48.4 Are land update

The rezoning of the Brawa 48.4 are land has been approved in Jakarta.
Last step is for Bali Government to issue map outlining the new re-zoning areas for Bandung Regency.

LAND FOR SALE 48,4 Are IN BRAWA CANGGU BALI

UNIQUE – BELOW MARKET PRICE – FABULOUS LOCATION – PROTECTED ASPECT.  

Located in the highly sought after and popular expat enclave of Brawa, where land has appreciated 400% in the last five years - this 4840 m2 property is truly unique, offering what no other property in the area can, and at below market price! get into the must-visit addresses will not require too much of your time. It only takes 7 minutes drive to the surf-able Berawa beach, 5 minutes drive to Canggu Club and only 10 minutes drive to the stylish Seminyak. 

•Although it is located in one of the most sought after areas of Bali, Bali Land Investment is offering this property at well below market price - 

SEMINYAK LAND VALUE MAP 2010

SUMMARY OF AN INDONESIAN LAND TRANSACTION

Please note that the information here supplied is to be used as a guide only. For exact information please consult a lawyer or notary in your area.  There are exceptions on the information here supplied, depending on the area of Indonesia, rules in Batam and Jakarta are different where there are "decrees" with exemptions.   In general one can conclude that that there many unclear areas in the Indonesian law, but it is generally safe to acquire properties.

The following summary outlines the basic steps involved in a foreign investor transacting a Hak Milik (“Freehold”) property in Indonesia with the Indonesian Nominee

A.        Due Diligence:

The Notary initially checks all aspects of the Hak Milik property and advises in relation to any impediments to purchase. The essential areas checked are:

• Hak Milik certificates of title authenticity at National Land Agency (“BPN”);
• ensuring no dual/fraudulent certificates exist by comparison with original title at BPN; 
• encumbrances, mortgages, Hak Tanggunan, Hipotik, Crediet Verband ;
• building licence (“Izin Mendirikan Bangunan”)/property usage;
• court actions in respect of the property;
• services connection;
• access road verification;
• disputes with local residents;
• any other issues particular to the property;
•  Any outstanding rates and taxes payable to the government (“PBB/Pajak Bumi dan Bangunan”);
• Necessary subdivision licenses or indication of government position on subdivision if development requires subdivision  .

B.        Hak Milik Transfer

Should the foreigner decide to proceed, the Indonesian Hak Milik owner executes with the designee of the foreigner, who must be an Indonesian citizen, either:

(a)        an Akta Jual Beli (“AJB”) ("Sale and Purchase Agreement") pursuant to which 100% of the purchase price is paid; or

(b)        a Perjanjain Pengikatan Jual Beli (“PPJB”) ("Agreement Binding for Sale and Purchase") pursuant to which a deposit is paid subject to payment of the balance of the purchase price. The deposit is generally not held by a stakeholder, as the common law concept of trust is not recognized under Indonesian law, but is typically paid to the vendor. Upon payment of the balance of the purchase price (in either one or a number of installments) the AJB is then executed and the conveyance of Hak Milik title to the foreigner’s Indonesian nominee occurs thereafter.

It should be noted that the Notary acts for both the vendor and purchaser in this transaction and is bound by ethics to ensure the transaction is finalized as agreed.

Upon execution of the AJB or PPJB, the original Hak Milik certificate(s) are escrowed with the Notary so that the vendor is then unable to deal with the land in a manner inconsistent with the PPJB. The Notary must receive proof of payment of purchase price before processing any Deeds in a transaction of this nature.

The typical costs to transact a Hak Milik conveyance are:

• Notarial fee for AJB or PPJB and AJB : 1.0% of the actual transaction value;
• Government transfer taxes : 5% of NJOP (“Nilai Jual Obyek Pajak” or Indonesian government designated value of the property) for each of vendor and purchaser;
• BPN registration fees: reserve Rp. 2.000.000 - Rp. 3.000.000 or more if the land area is large;
• Survey, subdivision or amalgamation costs if the Hak Milik titles are not in proper order for conveyance (subject to agreement as to costs between vendor and purchaser).

Please note that no legal title passes to the purchaser until after execution of the AJB and payment of the full purchase price.

Documents signed by Nominee at the Notaris office:

There are four documents needed for Nominee to sign (up to ten if more specific terms are required):

Number one describes that the foreigner gives money to the Indonesian name holder to buy land and property and the Indonesian gives this land and property to the foreigner to use it, out of his free will. The document also describes that the name holder gives the foreigner permission to sell, to rent it out or rebuild the house or property. It states that the agreement, if necessary, passes automatically to the heirs, as well of the foreigner as the name holders. It states that all of the property costs (electricity, water and taxes) have to be paid by the foreigner. The official 'Sertipikat' will be in the foreigner’s possession as well as the statement of cession, signed by the name holder. Only with this 'Sertipikat Hak Milik' it is possible to sell the land.

In the second document the selling of the property is granted to the foreigner. The name holder gives his explicit permission to do so.

In the third document the name holder gives permission to rent out the house or property.

The fourth document commits the name holder to co-operate, if the time ever comes that foreigners can own land and property in Indonesia, in making the foreigner being the new name holder on the 'Sertipikat'. In case the law changes in the disadvantage of foreigners, the name holder will co-operate in changing the agreement into a lease-contract of 50 years with option for another term.

Bali Land Forcast

BALI 10 YEAR MARKET HISTORY

MARKET PRICE = PRICE OF LAND SOLD, NOT ASKING PRICE 

 In the past decade, select properties in Bali have consistently produced some of the best return on investments (ROI) found anywhere in the world, surpassing the best producing investment stocks, funds, and options of the financial services industry.   There are several known areas in Bali that have produced annual high double digit ROI’s, and in some cases triple (over 100%) digit - most notably Seminyak (freehold and leasehold), Bukit cliff front,  Sanur, Brawa, Tabanan Coastal Zone, and beachfront throughout the island.  Of these notable locations, all of which have produced incredible returns for my investors, The Tabanan Coastal Zone (TCZ) has produced some of the best ROI’s, and arguably has the most room for growth.   In the past decade the island of Bali has experienced two major terrorist attacks (02’ 07’) SARS, Bird flu, natural disasters, recession, global financial crisis, corruption, and numerous political administrations;  yet land prices have never fallen, in fact they have risen steadily, at an average of over 22% for inland property.  Land prices in areas of tourism, foreign holiday and residential development has seen astronomical appreciation, and as beachfront and prime tourist locations see virtually no availability of land, demand for beachfront and prime locations in newly developing areas will be increase.

If one observes the progression of land prices, especially beachfront, oceanfront, and ocean view land, the progression has gone something like this –