Sea view Property for Sale

A Lombok sea view property lets you wake up to stunning ocean views every day, perfect for a peaceful lifestyle or a dream vacation home. Lombok is growing fast, with new roads, airports, and tourism projects, making it a smart place to invest. Seaview properties here are more affordable than in Bali, but the demand is quickly rising. Plus, you can rent it out to tourists when you’re not using it and earn extra income!

Foreigners cannot directly own freehold land in Lombok or elsewhere in Indonesia. However, there are legal avenues available for foreign nationals to invest in property:

1. Establishing a Foreign-Owned Company (PT PMA): By setting up a Perseroan Terbatas Penanaman Modal Asing (PT PMA), a foreign-owned limited liability company, you can acquire land with a Right to Build (Hak Guna Bangunan or HGB) title. This title allows the company to build and use the land for an initial period of 30 years, extendable up to 80 years. 

2. Long-Term Lease Agreements: Foreigners can enter into leasehold agreements, securing the right to use land or property for a specified duration, typically up to 25 years, with options to extend. 

3. Right to Use (Hak Pakai): Hak Pakai title permits foreigners to use land for residential purposes, usually for an initial term of 30 years, extendable for additional periods.

It’s crucial to engage with legal professionals experienced in Indonesian property law to navigate these options effectively and ensure compliance with all regulations.

In addition to the price of the property, you should budget for:

1. Transfer Tax (Bea Perolehan Hak atas Tanah dan Bangunan – BPHTB): This tax is 5% of the property’s sale value or the government-assessed value, whichever is higher. 

2. Notary and Legal Fees: A notary oversees the legal aspects of the transaction, with fees typically of 1%.

3. Value-Added Tax (VAT): For newly constructed properties, a 10% VAT may apply. This is often included in the sale price but should be confirmed during the purchase.

4. Seller’s Income Tax (Pajak Penghasilan – PPh): The seller pays a 2.5% income tax on the property’s sale price.While this is the seller’s responsibility, buyers should ensure it’s paid to avoid legal complications.

5. Survey and Inspection Fees: Conducting due diligence through property surveys and inspections is advisable, with costs varying based on property size and location. 

6. Administration and Registration Fees: These cover the cost of registering the property and transferring the title at the National Land Agency (Badan Pertanahan Nasional or BPN), typically ranging from $100 to $500. 

7. Property Maintenance and Management Fees: If not residing full-time in Lombok, hiring a property management company can be beneficial, with fees typically ranging from $100 to $500 per month, depending on services provided.

8. Insurance: Property insurance is crucial to protect your investment, with costs varying based on the property’s value and coverage type, typically ranging from $500 to $2,000 annually.

9. Renovation and Furnishing Costs: If the property requires renovation or furnishing, these expenses should be included in your budget, as they can vary widely depending on the extent of work needed.

It’s essential to account for these additional costs when budgeting for a property purchase in Lombok to ensure a smooth transaction and proper financial planning.