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3 Channels to Start a Property Investment in Lombok

3 Channels to Start a Property Investment in Lombok

Together with Bali, Lombok is a popular tourist destination that has gained worldwide recognition. Starting a Lombok villa rental business has thus become everyone’s desire. Even foreigners who see the profitable potential of Lombok property investment are interested to jump into this business and start their investment in one of the most beautiful tropical islands in the world.

If you are interested in starting a property rental business, here estate link are some ideas that can be used.

Collaborating with an Indonesian nominee

  1. Nominees that are authorized to hold a property title on behalf of a foreign owner might be any Indonesian citizens or companies that have been granted Perseroan Terbatas status. You have the option of entering into a partnership with another individual or business if you are aware of either one that you feel comfortable nominating for a position. The following is a list of some of the documents that need to be taken care of by you.
  2. The contract that legalizes the transfer of ownership of the property from the former owner to the nominee

  3. An irrevocable power of attorney affirming that the investor holds full control of the property and has the power to sell it, rent it, or represent the nominee in the event of disputes

  4. A loan agreement between the investor and the nominee. This agreement affirms that the investor has lent their money to the nominee to buy the property. The nominee’s statement letter acknowledging the loan is also necessary.

  5. A permanent Right to Use (Hak Guna) that legally permits the investor to use the property

Setting up a PMA (Penanaman Modal Asing)

  1. You will be able to legally own a piece of real estate indefinitely if you form an establishment called a PMA (property management association). The maximum amount of time that a PMA can be in operation is thirty years; but, given that its operational period can be extended whenever a fresh investment is made, it is theoretically possible to have it prolonged indefinitely. To establish a PMA, you will need to satisfy the prerequisites listed below.
  2. A business plan
  3. A confirmation that your company provides benefits to Indonesians in the form of job opportunities, skill improvement, etc.
  4. A cash deposit in an Indonesian bank
  5. A confirmation that the property you buy is your company’s asset

Leasehold channel

If you would rather have a long-term lease deal than an ownership agreement, this channel is an excellent choice for you to consider. Through this route, you will rent a property for a period of 25 years, during which time you will be eligible to receive the returns that are generated by the property. After the term of the current rental agreement has expired, you can extend it by entering into a new agreement with the landlord.

When the process of getting a Lombok villa rental is done, you can start to manage it as a property to gain more income. Just imagine, by investing in Lombok villa rental, you have a chance to get around $100 up to $1200 per night. It depends on how you manage the Lombok villa rental which you have. 

The most important thing is that you have to make sure that your villa is following the requirements. Besides following the legal process just like stated above, you also need to make sure that the villa has qualified facilities and a strategic location. You will get more than you expected if take the right way of investment in Lombok. Visit gira flat for more details.

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