Last Updated on December 3, 2024 by Yasmina

Are you dreaming of owning a beautiful property in Lombok? With its stunning beaches, peaceful landscapes, and growing popularity, Lombok is becoming a top destination for foreign property buyers.

Whether you want a vacation home, a retirement spot, or an investment property, buying in Lombok could be a fantastic decision. But for foreign property buyers, the Lombok property buying process can seem confusing. Don’t worry! This simple guide will walk you through every step of buying property in Lombok.

Why Should You Invest in Lombok?

Lombok is growing fast as a popular spot for property investment. Unlike Bali, which can be crowded and expensive, Lombok offers a more peaceful environment at a lower cost. The Indonesian government is also investing in tourism, making Lombok even more attractive for long-term growth.

Key Benefits:

• Rising Tourism: More hotels, resorts, and attractions are being built, making Lombok a top destination.
• Affordable Prices: Property in Lombok is much cheaper than in Bali.
• Investment Potential: As development continues, property values are expected to rise.

Legal Considerations for Foreign Property Buyers

Indonesia has specific laws for foreigners buying property. While foreign property buyers can’t directly own land (freehold), there are legal ways to purchase property.

Legal Options:

• Hak Pakai (Right to Use): Allows foreign property buyers to use land for up to 80 years.
• Hak Guna Bangunan (Right to Build): Let foreign property buyers build and own a structure on the land, but not the land itself.

How to Find the Right Property

Finding the perfect property in Lombok can be exciting! You can search online or visit Lombok in person to explore available options.

Tips:

• Visit the Area: It’s always a good idea to see the property in person.
• Think About Your Goal: Are you buying for personal use or investment? This will affect your decision.
• Use Trusted Sources: Work with reliable real estate websites and agents to avoid scams.

Should You Hire a Real Estate Agent?

Yes! Hiring a local real estate agent like Nour Estates can make the buying process much smoother. They know the local market, customs, and laws, which can save you a lot of time and stress.

What to Look For:

• Experience with Foreign Property Buyers: Make sure the agent has experience with international clients.
• Knowledge of Laws: They should understand property regulations for foreigners.
• Good Reputation: Check reviews and ask for references.

Property Ownership Options for Foreigners

Foreign property buyers can’t directly own freehold land, but there are other ways to own property. The most common option is Hak Pakai (Right to Use), which allows long-term use of the property. Another option is setting up a foreign-owned company (PT PMA) that can own property.

Ownership Structures:

• Nominee Agreement: An Indonesian citizen holds the land title for you (risky, not recommended).
• Hak Guna Bangunan (Right to Build): The safest option for long-term use.

Conducting Due Diligence

Before buying, make sure to check the property’s background. This is called “due diligence,” and it ensures there are no legal issues with the land.

Things to Check:

• Land Title: Make sure it’s valid and free of disputes.
• Zoning: Ensure the land is zoned for what you plan to build.
• Encumbrances: Check for any loans or mortgages tied to the property.

Making an Offer and Negotiating

Once you’ve found the perfect property, you can make an offer. Prices in Lombok are often negotiable, so don’t hesitate to negotiate through your agent.

Tips:

• Know the Market Price: Research similar properties to understand the market value.
• Be Patient: Negotiations might take time.
• Offer Fairly: While negotiating is expected, offering too low may turn off the seller.

Signing the Sale and Purchase Agreement (SPA)

After your offer is accepted, you’ll sign the Sale and Purchase Agreement (SPA), a legally binding contract that outlines the details of the sale.

What’s in the SPA:

• Payment Plan: When and how payments will be made.
• Property Details: A full description of the property.
• Legal Clauses: Terms that protect both the buyer and the seller.

Making Payments

Payments are usually made in stages. You’ll likely pay a deposit first (usually 10-30%), and the rest when the deal is complete.

Payment Tips:

• Use Secure Methods: Bank transfers are safest.
• Keep Receipts: Keep records of all payments.

Finalizing the Deal and Property Handover

After all payments are made, it’s time to take ownership! A notary will handle the paperwork to transfer ownership.

What Happens at Handover:

• Inspection: Make sure everything is in order.
• Document Transfer: The notary will transfer the land title and legal documents.

Costs to Expect in Lombok Property Buying Process

Besides the property price, there are other costs to keep in mind:

Typical Costs:

• Legal Fees: For notaries and lawyers.
• Consultant Fees
• Taxes: Property transfer taxes.
• Agent Fees: Usually 5% of the property price (the seller usually pays this fee).

Working with Local Authorities

You’ll need to work with local government offices to register your property, pay taxes, and ensure everything is legal.

Getting Legal Assistance

It’s highly recommended to hire a lawyer who specializes in Indonesian property law. This ensures that all paperwork is in order and that you’re protected.

Ongoing Costs and Property Taxes

After buying, you’ll need to budget for ongoing costs like property taxes and maintenance.

Ongoing Costs:

• Annual Property Tax: Based on the value of the property.
• Maintenance Costs: For upkeep and repairs.

FAQs About Buying Property in Lombok

This guide covers all the essentials you need to know when buying property in Lombok. By following these steps, you’ll be well on your way to owning your dream property in paradise!

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 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!