Concerns to Consider about Foreigner Ownership of Property in Indonesia

 

 

1. Not having seen the property in person 

2. The Investment Amount

3. The Size of the Property and Location

4. Construction and Labor Costs

 5. Adequate Healthcare Facilities

6.  Not having a human presence on or near the property during the period of investment.

7.  Is there access roads to the property or services such as electricity and water.



 

1. Not having seen the property in person

It would be best to personally see a property prior to purchase.  However, sometimes it's not feasible, for whatever reason, for an investor to travel to a property themselves and therefore rely on a trusted and reliable representative to view the property in their stead.  Our company offers ourselves as that reliable and trusted representative.  We have visited all properties we are considering for purchase and will continue to access the property on our clients behalf throughout the purchase process and when needed afterwards.


2. The Investment Amount

Yes it can be a lot for some.  More than some individuals wants to spend.  This is where our company can make the biggest difference in your investment plans.  We put together small investment groups to purchase larger more attractive property which have good appreciation value as well as some properties having the potential to be divided into smaller lots for better resale and return on investment.

So your able to invest as much as you feel comfortable with although we try to limit minimum investment to at least 10% of property purchase value.  However, if you want to invest in property on your own we can certainly offer our services to help you accomplish this also.


3. The Size of the Property and Location

Depending on what the plan is for the property (to land bank or develop), we find that large parcels, 1-10 hector are available for good purchase pricing and offer good appreciation value.  Large parcels offer the potential for subdividing into smaller parcels which are not that's available in areas offering good resale potential.  Large parcels are less expensive per are than small parcels again offering greater potential for appreciation value.

The more remote and/or the less serviced the land the lower the price.  Depending on your future outlook, we can find smaller parcels which have higher purchase costs per are closer to present developed areas which will appreciate faster.  If you have a longer term outlook, more remote larger parcels are available which can be "land banked" awaiting for local development to approach and then when the time is right, either sell whole or partitioned, develop further services on the land (road access, electricity, water), develop a home or resort on the property.  We will recommend and the investment group will decide on how to proceed.  In any case, each property will have a full project outline and time frame with estimated costs for any future planned development.  This outline will be presented and agreed upon by the investor group prior to property purchase and BTPI Co. will manage the property accordingly.


4. Construction and Labor Costs

BTPI Co. has established itself in the area of interest along with having local (Indonesian) partners as part of  our company.  Our partners have years of experience working with labor and construction companies in Indonesia.  Each of the properties we list as offered investment projects will have been thoroughly researched and accurate cost estimates for any development we suggest to be done to the property or any development that is requested before the property is purchased.

We strive for BTPI Co. to know the local people and businesses in all areas of interest as well as establish friendly relations with local village elders and local tribes.


 5. Adequate Healthcare Facilities

This is an issue that has a direct and immediate impact to you if you plan to develop a residence or a resort operation.  If you are strictly "land banking" it is not as big an issue although land located close to medical facilities presently or in the future will affect the resale value of the property in years to come.  We spend a lot of time researching what medical facilities are in the area of our interested as well as other social services, police services and any other details pertinent to the property and our investment partners including this information in the investment project package.


6.  Not having a human presence on or near the property during the period of investment.

Owning land from a distance can be a problem.  Anything from someone harvesting trees or foliage from the land to a family squatting on the land.  These are issues we presently deal with and through our Indonesian partners we have regular presence on the properties.  We strive to establish and maintain a positive relationship with the locals and are much less likely to have issues with the property.


7.  Is there access roads to the property or services such as electricity and water.

Each property project will have a thorough outline of what access and/or services are presently available to the property along with a plan to either leave the land "as is" or to install access and/or services with an accurate estimate for installing any service deemed necessary or wanted.  We have local access to contractors and service providers to address these issues and again, a detailed plan will be presented for each property.

 

 

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