Dear All,
Has anyone over here thought of investing in Bali? Or have you had experience in investing in Indonesia? If you have, I would love to hear more from you.
I am especially interested to hear your comments about this Seminyak Condotel: http://www.seminyak-condotel.com/; they are offering 18% ROI per annum for the next 5 years and the cost of the Condotel is about AU$54K.
I look forward to hearing your thoughts.
property_avid | NA
There are ownership issues with non citizens buying land in Indonesia. Do a google search and you will see how complex it is.
There are other issues too such as:
– Language – can you read contracts in Indonesian?
– Ripping off the foreigner – seems like foreigners will get charged extra for everything from cleaning to repairs ot electricity. This may be worse if you are not in the country to check
– corruption – like mopst poor countries corruption is rift with brobery a common and accepted practice. What happens when the mistress of a senior police officer moves into your unit and stops paying rent? (this happened to a friend of mine).
– decay – being a tropical area the buildings seem to decay faster and need painting etc more often
– borrowing. I doubt you would be able to borrow to buy into that project. So there is an opportunity cost of using your cash. You could make better returns in Australia.
– Tax. Tax issues can be complex as you will need to consider indonesian tax as well as Australia. That will mean much more in fees, and maybe difficulty in finding an accountant who knows both systems.
– guarantees – are essentially worthless.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I personally don't have experience investing in Indonesia. But I strongly recommend that you research the country's legislation regarding ownership of investments by foreign nationals before you take the dip. It's always advisable to get some ground knowledge from someone who lives there.
I couldn`t find a thread to post my question so I`ll do it here.
To answer the initial one though, if you have a trustworthy Indonesain friend get the hak milik title in their name and see a notary to absolve them of any ownership in the contract.My question is, I have land in Indo somewhere and am in the process of seeking some private investment via SMSF funding in order to build a resort on. To do this I am seeking to have a PT Company (Indo Co.) as a 100% subsidiary of an Australian owned Management Co. The thing is, can I create a unit trust or property trust of which SMSF holders can invest into that has ownership of the Management Co. which in turn Manages the PT Company (resort business) in Indo.
Is this possible for SMSF monies to hold investment in unit trust which has ownership over Aus Management Co which owns PT Indo Co (ie resort) or is there a better way?
Thanks
Investing in Bali can be tricky. I know of people who have lost lots of money by not having contracts drawn up properly and trusting a "friend".
The laws of ownership have recently changed for foreign ownership.You really need to do your homework on this. As mentioned the language barrier is a problem.
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