Batam Info / Interest / Help Thread

[nono1973]

Originally Posted by milfmilf

ticket price ard $30+ so 20% is $6+ discount
plus $14 terminal fee...
ok lah... use for cab fare or SIM card

With the orange colored horizon ferry tickets scattering all over Batam now, who still buys Batamfast? Hehehe...

https://sbf.today/showthread.php?p=...post184 42775

There are new ones now that expires on 31st May tho...

https://sbf.today/showthread.php?p=...post184 78494

Comparing with the original Horizon ferry tickets from its counter at Harbour front at S$48, its a saving between S$8 to S$11.50. I am waiting for those that expires on June 2019 tho.

[nono1973]

Another interesting article date on Singapore's National Day 2016, about 2.5 years ago as of this post. There are some key information on the article that i need, especially the 2nd photo i extracted into this thread in the article below...

As usual, i will hide most part for uninterested person and those interested simply click on the Spoiler Button to view the full article.

Foreigners Still Not Eager to Buy Property in Indonesia

Although the government of Indonesia recently decided to allow foreigners to buy landed houses and apartments in Indonesia (while setting a minimum value on property that foreigners are allowed to purchase), there are yet to surface reports of expats buying Indonesian property. There are several matters that can explain foreigners' lack of enthusiasm to invest in property in Indonesia. Indonesian property association Real Estate Indonesia (REI) has several proposals to make it more attractive for expats to buy real estate in Indonesia.

( Click to show/hide )

Enggartiasto Lukita, Honorary Chairman of the REI who recently replaced Thomas Lembong as Indonesia's new Trade Minister in a cabinet reshuffle, stated that the easiest solution (to boost foreign appetite to buy property in Indonesia) would be to make it mandatory that all high-rise apartment building projects are developed on land under the so-called ‘right-of-use’ title (in Indonesian: hak pakai). He plans to discuss this matter with the Minister of Land & Spacial Planning and the National Land Agency (BPN).

In 2015 Indonesian President Joko Widodo signed a regulation that allows expats to purchase property under this 'right-of-use' title, up to a maximum period of 80 years (the expat buys the property for an initial period of 30 years but he can extend it twice, up to a total of 80 years). A new requirement for the foreigner is the minimum value that has been set on landed houses and apartment units. By setting very high minimum values it will only impact on the market's top end (hence not pricing out local buyers).

Actually, previously, foreigners could already purchase property under the right-of-use category. However, the latest change gives this title a more permanent character. Still, this 'right-of-use category is not as strong as the 'right-of-ownership category.

However, there are no Indonesian property developers that develop apartments under the right-of-use category as this category is not popular among the Indonesian population. Naturally, Indonesians prefer to have the stronger right-of-ownership (which lasts indefinitely). Therefore, many property developers may not agree with the plan of Minister Lukita as they could see a big portion of their market vanish. However, according to REI Chairman Eddy Hussy, property developers actually agree with this proposal, possibly because not many development projects qualify for the minimum value that has been set for purchase of Indonesian property by a foreigner.

The next hurdle is to allow mortgages for foreigners. Currently, local banks will not sell mortgages for property under the right-of-use title. Lukita therefore suggests to change this and allow property under the right-of-use title to be used as collateral when purchasing a mortgage. Currently a foreigner is still required to pay 100 percent in cash for the property under the right-of-use title.

It also remains unclear whether the foreigner who purchases property in Indonesia needs to live and/or work in Indonesia or can be a resident of a different country. According to the latest "speculation", the Indonesian government may allow non-resident foreigners to buy Indonesian property (and in fact give provide them with a five-year resident permit after the purchase as a bonus). We will wait for this story to crystallize.

_____________________________

Some things in the above articles might have change (or tweet a little) for the better over the last 2.5 years. So i am still looking out as i type.

I read this article over a year ago,but keep it in tab in my Batam info vault but now decide to put it up here for compiling. Just sharing...

[miumiu6464]

Originally Posted by iicycold

u nwday quite eng ya...looking 2 buy properly in btm...wan 2 rent yr apartment 2 me nxt time, izzit?

mus tel u b careful , mai tio burn hor...btm properly actual no much cheaper compare 2 sinkpore wen u counting by $ per square foot....lol...sm more after u live 4 a while inside liao then sell 100% lugi money de....

Did some enquiry recently on purchase of property.

1. Foreigners can't buy those houses with land - think most of us know this. Those are only for Indonesian to buy.

2. Only apartments with value more than 750 juta, then you will get the title deed in your name. Less than 750 juta and you will just hold on to the Sales & Purchase Agreement as proof of purchase. The title deed will bear the developer name.

If this is the case, you're restricted to full cash payment or instalment plan by the developer.

3. Initial ownership is for 30 years only, extendable by another 30 years then 20 years, making it a total of 80 years. Don't know what happen after that.

If the owner is going to be Indonesian, then the above don't apply. But then, you will have another set of worry if owner gonigong to be Indonesian. Ha ha

[miumiu6464]

Originally Posted by iicycold

brother,have u try their local hospital? i meanin is u no buy frm apotek but buy direct frm hospital yr med, see weather they've or no? no tel me hospital themselves aso no have?

if like tat then jia lat liao....hw cum no move 2 btm? nearer sg ma...

nwday btm studio condom no expensive, can jus buy 1 & stay inside tere lor...lol..then like tat can make traveling easier ma.

Wife is worried of me curi ayam, given the fantastic reputation of Batam plus the frequent sms/WhatsApp messages from my ex-regulars. So, insist that we settle down in her hometown. Currently renting a 2 bedroom house, cheap at $250 for 6 months.

It's a small town here, with only 1 mall, 1 Hypermart, 1 Matahari and 1 Cinemaxx theatre. Have a few small scale hospitals which I don't think will have the medicine I'm taking. Heck, even SG govt is not providing subsidy for the medicine and can't pay via Medisave too. That's why I only tried asking K24 and Kymia since they are larger pharmacy chain.

Will be visiting batam next couple of months. Will try checking with the larger hospitals there if they carry the medicine I'm taking. If have, then will apply for their medical insurance card. Very cheap, 80k per month only and entitled to 2 beds ward, if suay² required lah.

[miumiu6464]

Originally Posted by Gem08

Finally, my first batam trip, solo. With some advises from Bro Nono1973, managed to have a good solo trip. Thanks again Bro Nono1973. A brief FR here.
Arrived HB and glad there was WIFI. Connected and booked a Grab from a nearby Hotel, however need to walk further out. Grab doesnt come into HB. Stayed at The K Hotel 270k booked from agoda. Not bad, may consider to stay again.
Met a waitress for lunch nearby Hotel and scored afterwards. This trip only spent time with the waitress and thats it. Since shes not a FL, I tipped much less than the market FL rate. Chatted with several FL and quote for LT was 1.2 to 1.5juta before nego irregardless SYT or milf. Not too adventurous since my first time there but still good considering had a few shots and definitely a budget trip. Food was nice nearby hotel and good variety. Went for a clean traditional massage at 90k/hr, so so only.
My next trip will probably be more adventurous. So much tempting to ON few of the FLs i chatted with.

Bro

Think most will be frightened by your "record". Get more than 3-4 shots also will have issue liao, not to mention 8-9 shots. You can try this girl from the joint nearby Hana Hotel. Mid 20s, playful and can backdoor. She's the quite hiong type, if you get what I mean. PM you the name and joint to book her. Just take it as thanks for recommending Sella (can't remember her name already, from 58A).

[Naka_Timo]

Originally Posted by Gem08

Finally, my first batam trip, solo. With some advises from Bro Nono1973, managed to have a good solo trip. Thanks again Bro Nono1973. A brief FR here.
Arrived HB and glad there was WIFI. Connected and booked a Grab from a
My next trip will probably be more adventurous. So much tempting to ON few of the FLs i chatted with.

Nice one. waiting for your next adventurous here.

[dromad68]

Still hoping to find boyzillian waxing in Batam. So far, I only found Pink Parlour has a franchise in the whole of Indonesia but not in Batam. If any bro happen to know pleas pm me.

Originally Posted by GuiltyvH

Couldn't find any info on boyzillian waxing in Batam. Going to stay around Harbour Bay area. If you know of any good ones, please let me know. Appreciate it.

[BFOMF5]

Originally Posted by BFOMF5

Was in Balai (Karimum) last week...

Day 1 skp -> TBK stay in Holiday
Day 2 east coast waterfall. Stay in Gabion
Day 3 West coast Pelawan beach. Stay in Karimum city
Day 4 TBK -> kukup (m'sia)

Balai 18-21Apr 19
https://sbf.today/showthread...=#post18495927

Day 1
https://sbf.today/showthread...=#post18506187

Day 2
https://sbf.today/showthread...=#post18510595

[HeatguyAlvin]

Originally Posted by miumiu6464

Did some enquiry recently on purchase of property.

1. Foreigners can't buy those houses with land - think most of us know this. Those are only for Indonesian to buy.

2. Only apartments with value more than 750 juta, then you will get the title deed in your name. Less than 750 juta and you will just hold on to the Sales & Purchase Agreement as proof of purchase. The title deed will bear the developer name.

If this is the case, you're restricted to full cash payment or instalment plan by the developer.

3. Initial ownership is for 30 years only, extendable by another 30 years then 20 years, making it a total of 80 years. Don't know what happen after that.

If the owner is going to be Indonesian, then the above don't apply. But then, you will have another set of worry if owner gonigong to be Indonesian. Ha ha

didn't know this. Then how does the villas in Montigo work, if one is considering to buy them. Does one own the land the villa sits under or is it just a lease by the developer, in this case KOP?

Looking at how http://citrabuanaprakarsa.com/property/marriott-hotel/ has been delayed for so long also scary

[BFOMF5]

Originally Posted by iicycold

..
like tat i tink they gng 2 beat majestic & sindo if they no price dwn aso....lol

som more last trip saw one ah pek drive tis kind scooter all the way from harbor front check-in waiting conpound into inside horizon ferry lei...

...dn't knw legal or no legal 2 drive tis thg in btm roadside or no? Nwday these ah pek sibei hiong sia... can see tis ah pek who driving the scooter is no belong 2 those cannot use leg walk type...lol,means tis ah pek not a handicap hor.

Did saw one..but couldn't remember in btm ctr or hbb.
I ask he said he done this many times.

Remember years ago.
I was trying do E-biking in btm. Checked with both custom they said just treat it as a baggage item. Check-in by pay some fee($10??)

But for him custom treat it as a kind if handicap equipment...
It's free...

[BFOMF5]

Originally Posted by iicycold

...
mus tel u b careful , mai tio burn hor...btm properly actual no much cheaper compare 2 sinkpore wen u counting by $ per square foot....lol...sm more after u live 4 a while inside liao then sell 100% lugi money de....

Years ago when I was eying to retired at btm...I ask a batam lawyer if I can buy a land in Beralang for farming...
He said something like...
the land is under "status quo"..
sorry law terms too chim for me...
Any way I do understand that...
The land is not belong to any one but the government. You're only paying to some one that had been "occupying" the land.
Any time any one on top need to use to the area. You get "No" compensation.

[BFOMF5]

Checked with tickets seller.
June tix only come after 1 April.
Not sure f it's a April fool joke???
Next week will know.

[nono1973]

Meantime i just touch up a bit on the landlord-friendliness in Indonesia....mostly info about renting out my units in future,hehehe...and some key info.

Once again, due to the long lengthy compilation, i shall "hide" most parts of it away from uninterested party and for those who are with me may wish to click on the Spoiler button to view the full article.

____________________________

Tenancy laws are generally neutral

Rents: Can landlord and tenant freely agree rents in Indonesia?

Rents are freely negotiated in Indonesia.

Rents are usually quoted in US dollar terms but paid in rupiah. Rents are typically paid in advance for the duration of the lease agreement. However, with an oversupply of rental units, tenants are now able to negotiate smaller advance payments or monthly payments. Tenants are also able to fix the exchange rate to protect them from devaluation of rupiah.

Rents are typically adjusted after 3 years, but the increase it typically capped at a maximum of 20% about the previous year's rental.

Deposits
A refundable security deposit of about a month's rent is required for unpaid bills and repairs.

( Click to show/hide )

Even if the rent is paid in advance for the duration of the lease with a security deposit, tenants can ask for a withholding fee to ensure that repairs are done to their satisfaction. The withholding fee is about a month's rent.

What rights do landlords and tenants have in Indonesia, especially as to duration of contract, and eviction?
Lease periods typically vary from 1 to 3 years. The terms depend upon the bargaining skills of the tenant and the landlord. Tenants typically have an option to renew.

Since most apartment units are rented out to foreigners, eviction is not a common problem. Expatriates lease the units for the duration of their assignment and typically leave before the expiration of their lease agreement. For some extraordinary cases, a "diplomatic clause" is inserted to allow the lease to be terminated if the expatriate is transferred outside of Indonesia.

It is also typical for companies to lease apartment units for their employees. In such cases, subleasing is usually allowed with the approval of the landlord. Maintenance and minor repairs (typically under US$ 100) are shouldered by the tenant. Standard lease agreements provide that major repairs (above US$100) are the responsibility of the landlord. It is advisable for tenants to negotiate a withholding fee, usually equivalent to 1 month's rent or 10% of the total lease value to be utilized in the event that the major repair is not addressed to the satisfaction of the tenant. Other aspects of the contract such as notices to leave are by agreement of the parties.

How effective is the Indonesian legal system?
There are no reported serious cases of landlord and tenant disputes in the popular media.

Legislation
There are no specific provisions for landlord and tenant regulation. The general law covering land in Indonesia is Basic Agrarian Law (Law No.5 of 1960). The right of lease (Hak Sewa) is not registered with the National Land Agency. However in practice, some local land offices will allow notation of the lease to be made in the official land records and/or on the title certificate itself.

____________________________

Below are some information i find pretty important to note on....and its very detail too.

(dated Jan 2019)

Purchasing an Apartment or Office under Strata Title

Ownership of offices and apartments is possible through strata title deeds, but you need to be very cautious when dealing with the laws and regulations to ensure that your ownership of an apartment in a high rise building is secure.

The 1996 regulation (No. 41/1996) states that foreigners who reside in Indonesia, or visit the country regularly for business purposes, can purchase a home, apartment or condominium as long as it isn't a part of a government-subsidized housing development. However, foreigners can only hold land-use (hak pakai) deeds, and the development holds the "Hak Pakai" (right-to-build) deed. It's not possible for someone to have a land-use deed for a sub-unit of a right-to-build deed. The length of these titles varies as well. Therein lies some of the difficulties and unclear ownership issues.

This means that foreigners can effectively lease (not truly own) an apartment for up to 70 years, but not a free standing house. Within this 70-year period, foreigners must also periodically renew their right to use. The initial Hak Pakai period is for 25 years, then is renewed for an additional 25 years and finally a 20 year period.

Hak Guna Bangunan vs Hak Milik

Hak Guna Bangunan is only the right to use a building for a certain period of time and then has to be extended. The owner of HGB land is the Indonesian government. HGB is also translated as - Conditional Corporate Ownership.

Only with Hak Milik do you actually own the land or building. Hak Milik does not need to be extended.

Hak Pakai allows you the use of the facilities, but not the ownership. Hak Pakai is also translated as - Conditional Ownership.

....and there, some extra info on Indonesia property ownership below.

“Foreign ownership of houses or apartments falls under the Right of Use category, locally known as Hak Pakai, which is weaker than the Right of Ownership category (freehold) or Hak Milik that can only be acquired by Indonesian citizens which is in accordance with the prevailing land law and regulations in Indonesia.”

Indonesia is regarded as one of Asia’s most promising emerging markets, in addition to its beautiful natural attractions and diverse culture. In this globalisation era, it is inevitable that foreigners want to come to this country, whether it’s for investment or tourism purposes.

Foreigners can choose to invest in various kinds of sectors in Indonesia. The property sector, for example, is a great investment opportunity for either commercial or personal purposes, as it is considered as one of the safest investment instruments and can be utilised for other purposes.

Previously, Indonesian law gave foreigners very limited access to own property. However, on December 28, 2015 the government set new requirements and procedures to allow foreigners to own property.

To support Indonesia’s domestic economic growth and attract private foreign investors to invest in the property sector, the Indonesian Government set forth Government Regulation No.103 of 2015 on Ownership of Dwelling of Residency House by Foreigner Domicile in Indonesia (Regulation 103).

In addition, to provide a technical guide for Reg 103, The Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency (Ministry of Land), issued Regulation No. 13 of 2016 on the Procedure for Granting, Releasing, or Transferring Land Rights over Residential Houses to Foreign Nationals in Indonesia (Regulation 13) on March 2016.

However, on September 29, 2016, the Ministry of Land revoked Regulation 13 and replaced it with Regulation No. 29 of 2016 on Procedure for Granting, Releasing, or Transferring Land Rights over Residential Houses to Foreign Nationals in Indonesia (Regulation 29), which is considered to be more “investor friendly”.

Regulation 13 was replaced because it did not receive a positive response from investors as expected. Some of the articles were considered hard to be implemented. For example, Regulation 13 did not allow foreigners to purchase second-hand properties.

By issuing Regulation 29, the Indonesian government allows foreigners who work or reside legally in Indonesia to own houses or apartments in the country for a period up to 80 years and the property can be part of a will during the ownership period.

However, foreign ownership of houses or apartments falls only under the Right of Use category, locally known as Hak Pakai, which is weaker than the Right of Ownership category (freehold) or Hak Milik that can only be acquired by Indonesian citizens in accordance with the prevailing law and regulation in Indonesia.

Other than that, there are several requirements and consequences for foreigners who own property in Indonesia, and it has been stipulated in Regulation 29 as follows:

• There is a set fixed minimum price for the property per region.
• The property can be purchased from second-hand sellers with certain criteria.
• Foreigners and their families are only allowed to have a maximum of one property.
• Limited to a maximum of 2000 Sqm land size (for houses).
• Property can be mortgaged in a bank or Indonesian financial institution.
• Must maintain their stay permit visa during their property ownership period.
• When leaving Indonesia, the foreigner must release or transfer the Right of Use to another person who meets all requirements to own property in Indonesia (this can be another foreigner or an Indonesian citizen) within one year after his or her departure from Indonesia.
• Foreigners can buy a house in Indonesia for an initial period of 30 years, which can be extended by another period of 20 years and then can be renewed for another 30 years.

At the end of 2017 the Indonesian government was rumoured to be proposing a new provision in a land bill that will allow foreigners to own properties under the Right to Build category or Hak Guna Bangunan. Right to Build allows the owner to build and own the building. It is far more advantageous for foreigners and also has a higher status than the Right of Use. However, there has not been any stated regulation yet regarding this matter.

Buying costs are very high in Indonesia

How high are realtors´ and lawyers´ fees in Indonesia? What about other property purchase costs?

How difficult is the property purchase process in Indonesia?

Individual foreigners can buy condominiums in Indonesia, though the formal law is slightly knotty. Foreigners can also buy control of landed property, though the legal difficulties are larger, and the degree of peace of mind attainable is correspondingly smaller.

Condominiums

The basis for foreign ownership of strata-title residential property, i.e. condominiums, is Government Regulation No 41 of June 1996. Regulation 41/1996 is however unclear, and no foreigner has actually received a strata title as a certificate of ownership. In practice, foreigners sign a Convertible Lease Agreement by which the title is held in the name of the developer, while a lease is held for a definite period. The Convertible Lease Agreement states that, if and when prevailing laws and regulations permit ownership of strata titles by foreigners, both the lessor and the lessee will be obligated to sign a deed of sale and purchase, transferring title to the foreign owner.

Land
Foreigners are not allowed to own freehold land. Nevertheless, they can acquire rights to the use of land but not ownership rights.

There are three options open to foreigners for buying in Indonesia:

1. Through an Indonesian representative

It is common practice to have an Indonesian representative acquire land for the foreign buyer. Ownership of land must be transferred from the previous owner to the Indonesian representative. For the foreign buyer´s security, three agreements must be entered into with the Indonesian representative.

• Loan Agreement - this states that the foreign buyer lent the purchase price to the Indonesian representative.
• Irrevocable Power of Attorney - this gives the foreign buyer full authority to sell, lease, mortgage, etc. the land.
• Permanent Right of Use Agreement - this gives the foreign buyer full rights to the use and occupancy of the land.

2. Through a Penanaman Model Asing (PMA) Company

PMA is a "status of doing business" in Indonesia. A PMA company has 30 years to operate after formation. It can be granted additional 30 years, and another 30 years, if it expands its project through additional investment. This can be 100% controlled by a foreigner.

The Right to Build (Hak Guna Bangunan - HGB) is available to PMA companies. The right to build or construct on land is valid for 30 years. This can be extended for an additional 20 years, and even for another 30 years after that.

To set up a PMA company you will be required to:

• Submit a detailed business plan.
• Operate in a business environment that adds value to Indonesia in terms of foreign skills, employment and environmental benefit.
• Make an appropriate cash deposit in an Indonesian based bank. (The amount varies and is calculated from the capital employed in the business).
• Show the property investment as an asset of the company.

The process takes approximately 3 to 4 months and once completed the company can apply for work permits for the foreign directors, 3 permits in the first year of operation. The cost of setting up is around US$5,000.

3. Through a Leasehold Title

This can be granted to qualified foreigners who are domiciled in Indonesia with a KITAS working visa. The lease runs for 25 years, and can be renewed for another 25 years.

It is important to hire the services of an Indonesian lawyer to assist with the transaction, especially with the monetary exchange. All land transactions must take place at the Indonesian Notary´s local office, Pejabat Pembuat Akta Tanah (PPAT), where the land is located.

While it may be natural to give a deposit, it is not advisable. There is no code of conduct for real estate firms in Indonesia; they do not have any legal obligation to protect the buyer´s interests and guarantee the title.

There are registered and unregistered lands in Indonesia. The Basic Agrarian Law of 1960 governs certified land, which is registered at the local land office. Unregistered land, Adat land, is community-owned. An examination of the land certificate being bought is important.

The whole process of registering property involves six procedures and takes around 22 days to complete.

Footnotes to Transaction Costs Table

Transfer Tax:
Transfer tax is levied on the sale of real property in Indonesia at a flat rate of 5%. The base is the transfer value of the property.

Sale and Purchase of Land Deed
The execution of the sale and purchase of Land Deed is made before Land Officials, namely a notary public appointed by the Head of the National Land Office (PPAT) or a local Head of a District (Camat PPAT). The cost is 1% of the property value.

Legal Fee:
Legal fees are negotiable. Processing fees for legal documents are at around 0.5% to 1.5% of the property value.

Registration Fee:
The registration fees are around 0.20% of the property value. Registration fees include administrative fees and stamp duty of IDR6,000 (US$0.41) per document.

Land and Building Transfer Duty (BPHTB)
The land and building transfer duty is levied at a flat rate of 5%, and is charged to the seller. The tax base is the transfer value of the property. There is a non-taxable amount which varies per region, and the non-taxable amount is IDR80 million (US$5,504) in Jakarta. This tax is different from the transfer tax.

Real Estate Agent´s Fee
Real estate agent´s fee is around 5% of the property value. The fee is paid by either the buyer or the seller, but not both.

[nono1973]

Been reading a lot from side of Indonesia, Batam. Time to read a bit from the Singapore side of rules and regulations (which is from moneysmart.sg). I have hid away the portions of the article below not related to Indonesia tho ,however i find them interesting as i could compare buying properties buying properties from other countries versus buying from Indonesia.

_________________________

Buying Property Overseas? Property Laws For Foreigners in Countries Like Malaysia, Australia & Thailand (plus Indonesia too)

There are certain limits to investing in property in Singapore. Even in a lacklustre property market, private property is still exorbitantly priced and comes with a whole bunch of inconveniences, like ABSD and not being able to rent to tourists on Airbnb for less than 3 months. And with all the rules surrounding HDB ownership, affluent investors are usually precluded anyway.

Whether you’re thinking of securing a retirement home overseas or simply looking out for investment opportunities in nearby Southeast Asia, Australia or the UK, you might be toying with the idea of buying properties overseas. So what are some of the things that you should be looking out for?

Can I buy overseas property if I own an HDB in Singapore?

If you own an HDB flat, you can buy overseas residential property only after you have fulfilled the Minimum Occupation Period (MOP), usually 5 years, on your HDB flat. If you’re buying overseas commercial property, you don’t need to wait until the MOP is up to buy.

Once your MOP is up, you can buy as many subsequent residential private properties (whether in Singapore or overseas) as you want.

When you have committed to an overseas property purchase, you will not be able to purchase an HDB flat if you do not already have one.

If you wish to buy an overseas property, you will need to sell your HDB flat within 6 months of the purchase of your flat.

Conversely, if you wish to buy an HDB resale flat after buying overseas property, you will need to sell additional private property (whether in Singapore or overseas) on hand within 6 months.

Obviously, you will not be able to use CPF savings to pay for overseas properties.

( Click to show/hide )

Buying property in Malaysia for foreigners

The good news for Singaporeans who wish to retire across the Causeway is that it is fairly easy for foreigners to own Malaysian property.

You are generally allowed full ownership of most property residential property types so long as they have a value of at least RM1 million ($331,090 SGD).

You are prohibited from buying certain residential units that the government has identified as low and medium cost, to be set aside for lower income Malaysians, as well as Bumiputera properties or those situated on Malay Reserved Land.

In practice, this means that you might end up looking at more luxurious property developments. There are no restrictions on ownership of landed property (except in the above mentioned cases), so if you’ve always wanted to own a house, or are already eyeing that spanking new JB property, this is your chance.

Buying property in Indonesia for foreigners

Foreigners are generally not allowed to purchase property in Indonesia unless they have some kind of link with the country, such as by being PRs in Indonesia, working there or owning a business there.

Ownership of property by eligible foreigners in Indonesia is generally restricted to non-subsidised houses, certain apartment units or vacant land on which you can build your own house. Actually, this “ownership” is a “right to use” title and generally lasts for only 25 years at a time, renewable for up to 70 years.

To get around the short duration of leasehold titles, you can get an Indonesian representative to buy property on your behalf through a legally binding contract. You might also be able to buy property through your business if you have one in Indonesia.

( Click to show/hide )

Buying property in Australia for foreigners

Due to an influx of Chinese buyers raising property prices, Australia recently tightened the rules and it is now harder for foreign buyers to buy property there.

As a non-resident foreigner, you can only buy brand new property, so you’ll need to look out for new launches rather than check out the resale market.

Before making a purchase, you will first need to obtain approval from the Foreign Investment Review Board and pay a fee of $5,000 for properties whose value is less than 1 million AUD or $10,000 for properties over $1 million, with the cost of the fee rising by $10,000 for each additional million.

The catch is that just because you pay the fee doesn’t mean you will necessarily get the property you desire. If the sale falls through, too bad.

Banks are also allowed to lend only a maximum of 60% of the value of the home, which means you’ll have to be prepared to fork out a deposit of at least 40%.

Finally, you’ll have to pay stamp duty, which in certain states like Victoria has risen for foreign purchasers.

Buying property in Thailand for foreigners

Some property developers in Bangkok now hold launches in Singapore, which is a testament to the popularity of investing in Thai property.

Foreigners are technically only allowed to wholly-own apartment units rather than land. This is the route taken by most Singaporean investors who buy luxury condo units in Bangkok. Even then, 51% of each building must be owned by Thais. Once the quota has been reached, you won’t be able to buy a unit on the property unless another foreigner sells their share.

When it comes to buying landed property, the situation is trickier as foreigners are technically not allowed to own land. The available options for would-be landed property owners include getting a 30 year lease and setting up a Thai company that has at least 51% Thai ownership and then using the company to buy the property.

Buying property in UK for foreigners

There are few restrictions on foreign buyers in the UK, except when it comes to loans. So long as you have the cash, most residential property is free game. Landed property tends to be freehold, while condos and apartments are more likely to be leasehold.

The minimum deposit is 10%, but as a foreigner banks might only loan you as little as 60% of the property value.

Overseas property loans

You can opt to take out a property loan either in Singapore or in the country where you are buying property.

Don’t forget to consider the following:

• Interest rates: Lower and more stable interest rates mean the mortgage will cost you less.
• How much money you can borrow: If you take out a Singapore mortgage, the TDSR might limit how much you can borrow. The limits on overseas mortgages will depend on the rules in the foreign country.
• Exchange rate: The future of the exchange rate will affect the overall cost of the mortgage to you.

Tips before you buy

• Visit the launch, exhibition or actual property: If you’re investing in new or unbuilt property, visit the launch and try to get a feel for the actual unit instead of relying wholly on brochures or websites.
• Visit the country: Inspect the area where the property is located. You don’t want to buy a property in a dodgy neighbourhood. For resale property, it’s obviously a good idea to inspect it in person.
• Research the developer: Take extra care to research on the developer of your potential dream house. Check their reputation and past projects to avoid falling prey to an overseas property scam.
• Research the market: Research the market, property type and area before you buy. For instance, in big cosmopolitan cities, a studio apartment in the city centre might be a better investment than a big house in the suburbs.

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The articles tho not in details but at least give me a rough idea whats to be done, what can be done and more important, understanding the level of riak-factor involved and the homework i need to do before my commitment.

i learned something from the article, hence i kept the above in my Batam Info vault.

[nono1973]

This article below was written by Getty Goh and was posted on October 8, 2013 in propwise.sg ; to me its an interesting read up as it involve some property scam happening in Batam and as usual, i am having most part of it "hidden" away in case no one is interested to read. For those who are interested, simply click on the Spoiler Button below :

How to Spot Overseas Property Scams

( Click to show/hide )

Recently, a mainstream newspaper wrote about how some dodgy foreign property investment schemes were recently sold in Singapore. Being a co-founder of CoAssets, Singapore and South East Asia’s first real estate bulk purchase and crowdsourcing portal, I have come across my fair share of dodgy investments. Hence, I thought it would be useful for me to share some of the tools I use to help me discern whether a deal is genuine or a scam.

Looking through the news article, the deal was eerily similar to something that I came across just a few weeks ago. Some of the similarities are (1) the project is located south of Batam and (2) more than 1,300 units were sold for $70 million.

The business model of CoAssets has been likened to that of SouFun, a Chinese listed company that provides targeted ad solutions for property developers by aggregating demand (i.e. bulk purchase). Hence, we were approached to get aggregate bulk buyers for this Indonesian project. After careful consideration, we turned the collaboration down and we found two key red flags that made us cautious.

Red Flag #1: The numbers did not add up

One of the main things that made my team wary was that the projected numbers did not add up. In another news article, it was reported that the developer was planning to sell 900 units at US$90,000 (about S$117,000). There were different units and the smallest unit was about 60 square meters (about 646 square feet). Of the 900 units, 200 were already sold at a special pre-launch price of about US$30,000 (about S$39,000), which meant that a deep discount of about 66% had been given to the group of early buyers.

Developers are after all in the business of making money through the selling of properties; hence the question we wanted to answer was whether a discount of 66% was reasonable.

When it comes to development, one key component is construction cost. To find out how much it costs to build a residential property in Indonesia, construction cost estimates for 2013Q3 from Rider Levett Bucknall (RLB), an internationally renowned quantity-surveying firm, were used.

Based on the report, the estimated construction cost for Jakarta was between RP6,161,000 per sq m (about S$62.36psf) and RP9,839,000 (about S$99.62psf). Due to the lack of more precise data for the Batam region, construction cost for Jakarta was used as an indication. Based on the estimated cost, purely for construction, it would cost between S$40,000 and S$64,000 to build the smallest 60 square meter villa. Hence, at the special price of US$30,000, the developer may not be breaking even.

Compounding to the risk, the number of people who received the special 66% discount was also unclear. The project could still be viable if the developer gave the special 66% discount to just a handful of close business associates. However, if it gave it to all 200 buyers, the total amount collected would unlikely be enough to cover the construction cost for the 200 units.

Red Flag #2: The developer did not seem to have the financial strength

Developments are generally hefty financial undertakings and many developers do it with some form of construction loans from banks. While developers may not reveal the true financial situation to the retail property buyers, they will have to show their financial reports to banks in order to secure construction loans. Hence, developers that can secure bank financing at the construction stage tend to be in a good financial position and are more secure. Conversely, developers who do not have some form of bank financing during the construction stage are not viewed to be as attractive.

The 900 units in the Batam development falls under the latter category. That is not to say that all projects that do not have bank financing during the construction stage are doomed to fail. However, for this specific case, the amount needed to build all 900 hundred units is at least S$36 million (assuming all 900 units are 60 square meter units that cost S$40,000 each to construct). When we did an ACRA check on the Singapore company, we found that the company had only a paid up capital of S$300,000 and the key appointment holders of the company stayed in public flats.

What is your financial recourse?

When it comes to overseas property deals, a key aspect that investors should look at is financial recourse – if things go awry, who will be financially responsible to make the investors whole. Based on HDB’s website, it states that “Under the Housing & Development Act, so long as one of the flat owners of the HDB flat is a Singapore Citizen, the HDB flat (of any type) will not vest in the Official Assignee (“OA”) in the event of bankruptcy of any or all of the flat owners and the flat owners would not be compelled to dispose of their flat.” This means that investors would have limited recourse should the development fail to materialise, as the directors’ assets could not be sold to repay the debtors.

More troubling is that the amount raised from the presale is about S$7.8 million. It is still significantly less than the S$36 million needed for the project, bearing in mind that this is just a low end estimate as things like land cost, developer profits and other miscellaneous charges have not been factored in. A S$300,000 company is unlikely to have the type of financial muscle to deliver on a S$36 million project. And without bank financing, it is hard to fathom how they will be able to deliver on their promise.

Based on the two factors highlighted above, the CoAssets team concluded that the deal was too risky and we were not prepared to endorse it. At this juncture, I must emphasize that not all projects that fail are scams. Even good developments with solid management behind them have some risks of failing, as real estate development is, by nature, a risky endeavour.

To us, genuine business failures are realistic plans that go awry due to a sudden change of market conditions. On the other hand, scams are “fantastic promises” made by those who do not intend to keep them – this means that the plan is unrealistic at the onset.

Conclusion

To conclude, the Indonesian case study that I have cited in this article could be a genuine deal. The developer could also have the financial muscle to take on a multi-million project and be profitable selling their villa units at S$39,000. However, I think that it is always more prudent to err on the side of caution. Even if I am wrong and this turns out to be the next big financial deal, the market is not short of genuine good deals, all we have to do is look and do our due diligence.

I also must qualify that this article just provides a brief analysis on two of the more important red flags. There are many other considerations that have not been listed and a more detailed write-up will be beyond the scope of this article. However, if you are currently looking at a deal that seems too good to be true and would like to get a second opinion, you can drop me an email at [email protected]. While it is not part of CoAsset’s core business, we hope to add more value to you by highlighting some of the blind spots that you might have missed.

Ultimately, let me end off with this adage, “if it seems too good to be true, it often is”. This statement is pretty much applicable to everything in life, overseas property scams included.

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I am almost done with the property info posting, the last of it to do would be to compile EVERY damn thing i post before inside one post for my easy future reference.

i do read a lot, but doesnt mean i could read and can understand or/and able to remember it all.

I have already try my very best to squeeze all possible words inside one single post instead of having to make multiple posts, hence avoiding spamming or possibly be classified as TCSS in a thread. Meaning to say with the number of words in my one single post, i easily hit 20 posts in one single thread if i break them up (illustration number only,base on one or two line of sentence a post).

So please, avoid quoting my whole long post whenever anyone try to reply to my posting/s.

Reference posting :

https://sbf.today/showpost.php?p=18...ostcount=13259

https://sbf.today/showpost.php?p=18...ostcount=13260