Are you interested in buying a villa for sale in Lovina? Lovina is a scenic coastal town located in northern Bali. Many people dream about owning a villa, townhouse, or apartment in Lovina. Still, buying real estate in a foreign country such as Indonesia can be daunting, especially if you are unfamiliar with local laws and regulations.
This article provides a comprehensive guide to help foreigners who want to buy real estate in Lovina, Bali. From understanding the legal requirements to finding the right property and completing the transaction: we will cover everything you need to know to make your dream of owning a villa in Bali a reality.
Can foreigners buy real estate in Lovina?
Lovina is a promising investment destination for those interested in investing in Bali’s real estate market. Like other areas in Bali, foreign investors must adhere to regulations when purchasing property in Lovina. Understanding the legal requirements and seeking expert advice is important to ensure a smooth investment.
Though it is difficult, foreigners can buy real estate in Lovina and other Indonesian cities and regions. Local laws and regulations make it hard for foreigners to buy property in the South-East Asian country, although a few ways make it possible. It is important to be aware of the local laws and regulations, so you don’t make any mistakes that could have legal consequences.
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8 steps for foreigners to buy a villa in Lovina
Knowing Indonesian rules and regulations when buying property in Lovina and other Indonesian cities and regions is important. You can do this by researching the laws and regulations or getting help and advice from a local real estate agent.
Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build) are the three kinds of property ownership in Indonesia.
Only Indonesian nationals are allowed to obtain Hak Milik. This means foreigners are never able to buy property in their full name. Instead, they can establish a legal entity to obtain Hak Pakai and Hak Guna Bangunan to buy real estate property in Indonesia. This legal entity is a foreign-owned company called a PT PMA.
- Step 1: Establish a PT PMA in Bali
- Step 2: Find a reliable real estate agent in Lovina
- Step 3: Search for a villa for sale in Lovina
- Step 4: Review the property licenses and conduct due diligence
- Step 5: Obtain the property certificate from the Indonesian National Land Office (BPN).
- Step 6: Sign the Sales Purchase Agreement and make a downpayment
- Step 7: Finalize the transaction at a public notary
- Step 8: Ownership transfer of the Lovina property: The BPN will issue the property certificate under your PT PMA.
Foreigners who want to buy real estate property in Lovina can do that in three different ways, which are:
- Leasehold: It is possible to invest in real estate by leasing property. Through leasehold, the foreigner won’t fully own the company but will rent it from the Indonesian national who holds the freehold title.
- Indonesian nominee: Foreigners can use an Indonesian nominee to buy land registered under the nominee’s name. However, it’s important to consult a legal professional before proceeding due to the legal implications and risks involved.
- Foreign-owned company (PT PMA): Establishing a PT PMA is a secure and popular way for foreign investors to buy land and property in Lovina. This option provides greater protection and control over the investment.
Lovina real estate prices
Real estate prices vary all across Bali. Buying real estate in Lovina is cheap compared to other villages in Bali. You will find an overview of Lovina’s average real estate prices in the table below.
|Average buy price||Average price/sqm|
|House||IDR 3.6 billion ($234,000)||IDR 11.3 million ($735)|
|Land||IDR 1.7 billion ($110,500)||IDR 320,000 ($20.80)|
Reasons to invest in Lovina villa
Investing in real estate in Lovina can be a smart decision for several reasons. Lovina is a beautiful and peaceful coastal town with stunning beaches, crystal clear waters, and a relaxed atmosphere that attracts visitors worldwide. The town is known for its world-class snorkeling and diving sites, dolphin-watching tours, and gorgeous sunsets, making it a popular tourist destination.
The Indonesian government has implemented several policies in recent years to encourage foreign investment in the real estate sector, including simplifying the process of acquiring property and issuing visas for investors.
Lovina’s real estate market is still in its early stages, so property prices are relatively low compared to other popular tourist destinations in Bali. This presents an opportunity for investors to buy property at a lower price and benefit from potential appreciation in value over time.
Working with a real estate agent in Lovina
Investing in real estate in Lovina can be a smart decision due to the town’s natural beauty, the island’s popularity as a tourist destination, the affordable cost of living, and the potential for long-term appreciation in property value.
When considering buying a villa or house in Lovina, it’s advisable to use a trusted real estate agency that helps you follow the legal requirements, including setting up a PT PMA. Besides that, the agency can also help you apply for the right licenses, fulfill tax obligations, and find the right property that fulfills your wishes.
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Frequently Asked Questions (FAQs)
Can a foreigner buy property in Lovina?
Yes, foreigners can buy property in Lovina. They can do so through a leasehold, an Indonesian nominee, or a PT PMA. The safest and easiest way is through the PT PMA (a foreign-owned company).
Is buying a villa in Lovina a good investment?
Buying a villa in Lovina can be a good investment. The real estate prices in the village are low compared to other regions in Bali, and more and more tourists are coming to northern Bali, giving it a lot of potential.
How much does a villa in Lovina cost?
A villa in Lovina can cost from IDR 500 million ($32,500) to IDR 10 billion ($650,000), depending on the kind of villa, location, and several other factors.