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Introduction
Freehold Land For Long-Term Appreciation
We're investing modestly in Indonesia's new land ownership (freehold) options to foreign entities. By co-owning the land with the government, we are taxed 2.5% of the land's value per 80-year contract, with the usual options to extend.
Property values in Bali are expected to continue skyrocketing over the next 25-years, as the government invests more into infrastructure like roads, schools and hospitals. Bali is already well-known as a fantastic place to vacation or retire, but as more people continue to work remotely and the Government of Indonesia continues to create visa programs to support this lifestyle, we anticipate a prolonged period of growth unparalleled in recent history.
According to TripAdvisor, Travelocity, Expedia, AirBnb and Bookings.com; Bali is the #1 tourist destination on the planet. It really isn't surprising considering the fact that foreign tourism on the island has increased by over 25%, each year, for the past 14-years. It's no wonder that property values have increased by over 19% (annually) in that same timeframe.
Description
Bali is not only a comprehensive travel and holiday destination, but an increasing number of foreigners are also investing in the island by buying property in Bali. Based on the data, Bali's growth closely parallels Hawaii in the 1960's.
The safest way for a foreign national to invest in property in Bali is to do it through a foreign-owned company (PT PMA) and acquire the ‘Right to Build’ (Hak Guna Bangunan) certificate. To ease the pain of this process, we formed a strategic partnership with Bali's strongest legal team for foreign national investors and set up a PT PMA of our own. When we build a property, we file it as a branch of our PT PMA. And, when it comes time to sell, our legal partners work with the buyer to set up their own foreign-owned company to secure their investment moving forward.
Essentially, this license makes the buyer the owner of the property. Their family members can inherit them and they can sell the property. If the buyer is an Indonesian citizen they are also able to convert the certificate to a Hak Milik (right to own).
If the buyer or their family wishes to hold the property after the 80 years (which would potentially be in the 22nd century by then), they will acquire a new certificate once the old one expires; the option to extend is already in the contract.
It's an imperfect system, but we understand it and help our investors navigate it - perfectly.
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