Successfully Purchasing Property and Avoiding Pitfalls



The Complete Guide to

Buying Property in Lombok


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III.Get familiar with all of Lombok before you choose the Area to Buy

A. Changing your outlook from Tourist to Resident

Even if you have visited Lombok several times as a tourist, your vision of the island is probably usually narrowly focused. Your first priority is looking for the best beach, a great restaurant, or perhaps finding a good place to snorkel or surf. You may have stayed at one or two resort areas, and perhaps visited some of the popular tourist attractions. When you seriously begin to consider buying land, you should look at Lombok from a whole new perspective. Look at many types of land in many areas. You may discover that a location removed from the tourist hubs better fits your day-to-day lifestyle as a resident.

B. Explore the Hidden Lombok

Many prime parcels are tucked away in areas where most tourists seldom visit. There are expansive villas built by foreigners on a large plot of land located far from a tourist area. These areas have the advantage of low price, plus they may actually meet fill some of your most important reasons for buying land in Lombok, such as quite solitude with a great ocean view at a low price.

For example, Ekas Peninsula on the far northwest corner of Lombok has many prime properties right on the ocean with beautiful, crystal blue water. The foothills of Rinjani Mountain offer drinkable spring water, spectacular views, and close access to places like Mataram and the new Airport. Yet most foreigners barely know these places exist.

I suggest you hire an experienced guide who can take you on an extended tour of the complete island. Even if you decide none of these other areas are preferable, the knowledge you gain of land values, terrain and the different weather patterns will make this trip time well spent - not to mention the sheer fun of traveling everywhere.

You must begin to think of your life here as a resident and/or investor. Since you are preparing to make a sizable investment you should look seriously at all the facts and information available to be certain you are making the right decision.

C. Starting a Checklist

Here is a general checklist of things to look for during your travels. Some factors maybe of critical importance to you, while others may seem trivial. Some of these things may seem obvious or unimportant to you. Customize this checklist to make it work for you. When you are looking for an area to call home, it is easy to forget to ask some of the most obvious questions.

  • Do you feel comfortable in the general neighborhood? Are people friendly? Do you like the terrain and the native vegetation?
  • If you are seeking serenity and tranquility, is the area likely to remain undeveloped and quiet?
  • What are the weather conditions? Different areas of Lombok experience significantly different weather patterns. During the course of a year, some areas can be hot and dry, while others cool and wet.
  • If you are buying for investment, what the potential for price appreciation? Are new or planned developments likely to come into the area?
  • What are the roads/driving like? Many areas can only be accessed via poor quality roads. Traveling over bad roads is both uncomfortable and dangerous, especially in the rainy season.
  • How far do you have to travel to buy essential products, such as building materials, a mini-market for food, a general store selling a variety of household products, a pharmacy, a garage to repair a motorcycle or automobile?

This is just a place to start. Some of the items may, or may not, apply to you. The important thing is to write down a list of items to check, so you do not suddenly remember something important back in the hotel room that you forgot to ask.

"On the road again.."


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

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