How to Buy a Villa in Lombok?

Buying a villa in Lombok can be a dream come true for many seeking a serene and beautiful retreat. Lombok offers an ideal setting for a second home or retirement property with its stunning beaches, lush landscapes, and affordable real estate. However, purchasing property in Indonesia, especially for foreigners, involves navigating various legal and bureaucratic processes.

This guide will help you understand the steps and requirements for buying a villa in Lombok.

Introduction

With its natural beauty and growing infrastructure, Lombok is becoming an attractive destination for property investment. Whether you’re looking for a vacation home, a retirement spot, or an investment property, buying a villa in Lombok can be a rewarding experience. Here’s a comprehensive guide to help you through the process.

Why Buy a Villa in Lombok?

Lombok is an excellent place to buy a villa for several reasons:

• Natural Beauty: Lombok has beautiful beaches, mountains, and villages.
• Affordable Real Estate: Compared to Bali, property prices in Lombok are more affordable.
• Growing Infrastructure: Improved infrastructure, including roads, airports, and amenities, enhances the appeal of Lombok.
• Investment Potential: Property values are expected to rise as Lombok grows in popularity.

Steps to Buy a Villa in Lombok

1. Understand the Legal Framework

Foreigners are not allowed to own freehold land in Indonesia directly. However, there are several ways to acquire property legally:

• Hak Pakai (Right to Use): This is the most common method for foreigners to hold property. It grants the right to use and build on land for up to 30 years, with the possibility of extension.
• Hak Guna Bangunan (Right to Build): This allows the right to build and use land for 30 years, extendable for another 20 years.
• Hak Sewa (Leasehold): This is a straightforward lease agreement where you lease the land or property for a set period, typically 25-30 years, with renewal options.

2. Find a Reputable Real Estate Agent

Engage a reputable real estate agent who understands the local market and legalities. They can help you find the perfect villa and guide you through the purchase process. For further information, read our post on How can buyers find reliable real estate agents in Lombok?

3. Property Search

Start searching for properties that meet your criteria. Consider factors such as location, size, price, and proximity to amenities. Visiting Lombok to see the properties in person is highly recommended.

We can help you with your property search, don’t hesitate to reach out to us for any questions.

4. Due Diligence

Before making an offer, conduct thorough due diligence:

• Check Ownership and Land Titles: Ensure the property has a clear title and is legally owned by the seller.
• Zoning and Land Use: Verify that the property is zoned for residential use and complies with local regulations.
• Survey and Inspection: Have the property surveyed and inspected for any structural issues or encroachments.

For further information, refer to our posts on What is Due Diligence, and Why Do I Need One? and What are the steps in Due Diligence in Indonesia?

5. Make an Offer and Negotiate

Once you find a suitable villa, make an offer. Negotiations are common, so be prepared to negotiate the price and terms.

6. Legal Assistance

Hire a local notary (Pejabat Pembuat Akta Tanah or PPAT) to handle the legal paperwork. The notary will draft the sale and purchase agreement and ensure all legal requirements are met.

We have an in-house notary at Nour Estates, so don’t hesitate to contact us for any legal questions.

7. Sign the Agreement

Sign the sale and purchase agreement (Akta Jual Beli). This legally binds the transaction. Ensure all terms and conditions are clearly stated.

8. Payment and Transfer of Ownership

Make the agreed payment, usually in stages:

• Down Payment: Typically 10-30% of the purchase price.
• Final Payment: Upon completion of the transaction.

The notary will register the property transfer with the National Land Agency (Badan Pertanahan Nasional or BPN). You will receive the Hak Pakai or leasehold certificate.

Costs Involved in Buying a Villa in Lombok

• Notary Fees: 1-2% of the property value.
• Transfer Tax: 5% of the property value.
• Legal Fees: Vary depending on the complexity of the transaction.
• Agent Fees: Typically 5% of the property price.

Tips for Buying Property in Lombok

• Work with Professionals: Engage reputable real estate agents, lawyers, and notaries to ensure a smooth transaction.
• Research Thoroughly: Understand the market and legal requirements before committing.
• Visit the Property: Always visit the property in person before purchasing.
• Check Infrastructure: Ensure the property has access to essential utilities and services.
• Understand Your Rights: Be clear about the rights and limitations of property ownership for foreigners in Indonesia.

FAQs on buying a villa in Lombok

Conclusion

Buying a villa in Lombok can be a rewarding investment, offering a beautiful and serene environment at an affordable cost. By understanding the legal requirements and following the proper steps, you can successfully navigate the property market in Lombok. Ensure you work with experienced professionals and conduct thorough due diligence to make your dream of owning a villa in Lombok a reality.

About Nour Estates

We started Nour Estates with a simple idea: to make finding your dream land in Lombok as easy and enjoyable as a day at the beach. Our team is a mix of local folks and people from around the world who fell in love with Lombok just like you. We’ve been in your shoes, faced the challenges of buying land here, and learned all the ins and outs. Now, we’re here to share that knowledge with you.

We are here to find you the perfect land to invest in. Contact us today, and let’s start this exciting journey together!

Looking for land to build your dream villa in Lombok? Discover our exclusive lands below: