Successfully Purchasing Property and Avoiding Pitfalls



The Complete Guide to

Buying Property in Lombok


Updated January 2012

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surferI have an accountant friend named Richard Darin who loved surfing the warm waters of Lombok so much that he decided to build a vacation home for his family. In 2001 he bought a parcel with a spectacular ocean view west of Kuta, Lombok.

Then something happened. Richard discovered, after several years, the investment in that one parcel had earned him the equivalent of a year's salary -- and he didn't even have to work at it.

Since the original purchase, he's bought six more lots, subdivided one and sold two. On his last trip, he found another two to consider. He's also seriously considering living in Lombok full-time and building some bungalows for a steady income.

Darin grins while mimicking the lyrics of a local bar song -- "Welcome to my Paradise!"

Whether you're looking to strike it rich, or just looking to build a retirement house, the idea of owning land on a tropical island can't help stir the imagination, and the envy of your friends.

I. Introduction to this Guide

This Guide focuses primarily on buying raw land. The reason is Lombok has a limited stock of residential housing which foreigners find suitable to live in. The local housing is generally of low quality and constructed for a very different lifestyle. More recently, some resale housing built by foreigners 5-8 years ago are coming on the market, especially in the Senggigi/Gili area. Also, a few developers are starting to construct speculation housing and sell the complete residential property as a package such as found in Bali. In the main, raw land still constitutes a large percentage of the property on the market.

Buying property in Lombok is can be relatively easy or difficult depending on two primary factors: 1) How much information you have gathered prior to starting the search for land, and 2) who you choose to work with during the purchasing process. You must have good understanding of the area where you want to buy land, plus dedicated, reliable, honest people working with you. The purpose this Website is to give you a step-by-step guide to successfully buying land in detail , plus some tips on how to avoid scams and make the land purchasing process easier.

The more knowledge you gain in advance will pay dividends many times over both during and after the your purchase.

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Guide to Buying Lombok Property


I.Important Facts to Consider
A.Is ownership risky?
B.Lombok: A Different Culture
C.Living on Lombok
II.Summary Steps to Buying Land
A. Get familiar with Lombok
B. Choosing a Partner("Nominee")
C. Find a parcel of Land
D. When You Find a Parcel
E. Negotiate the Price
F. Comprehensive Due Diligence.
G. Initiate Title Transfer.
H. Issuance Land Certificate
III. Visit All Lombok First
A. From Tourist to Resident
B. Explore the Hidden Lombok
C. Starting a Checklist
IV. Legal Issues
A. The Issue of Ownership
B. Foreigners Solve the Problem
C. The Nominee Method
D. Foreign Direct Investment(PMA)
E. One Final Option
V. Choose Partner and Team
A. Start Looking Early
B. Wide Variety of Skills
C. Other Trustworthy People
D. Check if Trustworthy
VI. Places that Sell Land
A. General Warnings
B. Real Estate Companies and Websites
C. The Local Tour Guide
E. The Local Gossip Mill
F. Miscellaneous Sources
VII. When You Find a a Parcel
A. Initiate Early Discussions
B. The history of the land
C. Get to know the Players
D. Slowly Get to the Price
VIII. Through an Engineer's Eyes
A. Clear access
B. Public facilities
C. Everything Belongs to you?
D. Check the Drainage
E. Check the Stability
F. Double Check Everything
IX. Settle Price and Terms
A. Necessary Preparations
B. Establish Proper Atmosphere
C. Conduct the Negotiations
D. The Issue of Parcel Size
E. Money is Not the Only Issue
F. Giving a Deposit?
X. The Written Agreement
A. How do I Pay Money?
XI. Due Diligence and Research
A. Risk versus Benefit
B. Due Diligence
C. Checking Public Records
D. Digging for the Unwritten Truth
XII.The Notaris Office
A. Settling the Final Terms
B. Notaris - Initiate Title Transfer
C. Sign the Nominee Agreement
XIII. Finally a Certificate