Can I get a loan for the purchase of a villa in Bali?
In Bali, foreigners typically cannot secure loans for property purchases, except in certain special cases. For financing options in your home country, we don’t provide assistance, as these depend on various individual factors. Some clients have successfully obtained loans using a mortgage on property in France.
Please find below a summary of the investment project that you can present to your bank, tailored to the type of villa you choose. This document highlights key details to support your financing discussions.
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What is the buying process?
Here’s a clear overview of the buying process, designed with your needs in mind. We are dedicated to tailoring each step to suit your specific requests whenever possible:
How can I prepare for my trip to Bali if I’m interested in buying or building one of your homes? Do I need to visit in person?
You don’t need to visit Bali to begin your project with Magnitude; we can handle everything remotely, keeping you informed every step of the way.
That said, we do recommend a visit. Meeting our team in person, exploring available plots, and viewing completed villas can enhance your understanding of the project. During your stay, we’ll arrange meetings with the architect, notary, and assist with opening a bank account. This visit will provide valuable insights and help ensure your expectations are met. Afterward, we can easily continue collaborating from a distance.
Can I arrange a one-time meeting in Bali to tour properties and manage everything else remotely?
Certainly! You can arrange a one-time meeting in Bali to visit the proposed properties while we manage the rest of the process remotely. If you prefer not to visit, we can seamlessly handle the entire project on your behalf and keep you updated at every stage.
What are the steps and documents required to reserve land with Magnitude?
To reserve land from our database, you will need to follow these steps:
- Sign the Reservation Contract: This formalizes your intent to reserve the property.
- Pay a Deposit: A deposit of €10,000 is required to secure the reservation.
- Complete the Notarial Deed: This can be signed in person or by proxy if you cannot attend.
How can I legally maximize my Return on Investment?
To legally generate income in Indonesia, establishing a company is essential. We will guide you through this process, ensuring it’s smooth and straightforward. By setting up a company, you not only comply with legal requirements but also unlock the full potential of your investment. With our expertise, you can confidently navigate this opportunity and achieve your financial goals.
What type of Visa am I entitled to when investing in Indonesia?
When you invest through your company, you can obtain a KITAS, a residence permit valid for two years in Indonesia. We will provide you with all the necessary information and support to make acquiring this permit straightforward and efficient.
Can I open a bank account in Indonesia?
Yes, you can open a personal bank account in Indonesia with a residence permit. For your company, Magnitude will manage the account opening process, ensuring that all administrative procedures are handled smoothly.
Is it mandatory to open a bank account in Indonesia?
While it’s not mandatory to open a personal bank account in Indonesia, your company is required to have one. Magnitude will handle all the necessary steps to open a bank account in your company’s name, ensuring a seamless process.
Does my villa come with any warranty?
Yes, we offer a one-year warranty against major construction defects for our villas, along with a five-year structural guarantee. Please note that this warranty does not cover force majeure, weather events, earthquakes, floods, accidental incidents, or natural wear and tear.
For added protection, you can purchase insurance, such as Zurich Insurance, which covers most of our clients against theft, fires, earthquakes, floods, volcanic damage, and other natural events.
What expenses should I anticipate after my purchase?
BaliSuperHost will provide you with a clear breakdown of all operating costs, which will be deducted from your rental income. This ensures you have a transparent understanding of your financials right from the start.
What support do you offer for rental management?
We partner with BaliSuperHost to offer comprehensive management for your rental villa. They handle everything, including financial management, cleaning, maintenance, and tenant welcome services, ensuring a hassle-free experience for you.
How do you address concerns about tenant damage to my villa?
Our dedicated team is on hand to manage tenant check-ins and check-outs while monitoring the villa’s condition. Any damages incurred will be the responsibility of the tenants, allowing you to rent out your villa with confidence and peace of mind.
Are there guarantees about the view from my chosen land? How likely is it that upcoming development might obstruct the view in 10 to 15 years?
While we can't guarantee that the view will remain unobstructed indefinitely, we carefully select plots in areas with a low risk of future construction. We also help you review local regulations and development plans to further minimize this concern.
What are the occupancy rates for villas, and is there a guarantee?
We partner with BaliSuperHost, a trusted expert in rental management, to help optimize your villa's occupancy rates. While we can't guarantee specific occupancy rates, BaliSuperHost employs effective strategies to maximize your property's profitability.
What will happen to the villa if we keep it until the lease ends, and what are our options afterward?
At the end of the lease, you can negotiate an extension with the landowner, depending on the initial contract terms and your discussions. If an extension isn’t possible, the property will revert to the landowner. In some cases, you may also have the option to negotiate the sale of the villa to the landowner.
Can the landowner refuse a lease extension, and what are the terms for extending the lease when it expires?
Yes, the landowner can refuse a lease extension upon expiration unless specific provisions for an extension are included in the initial contract. Typically, the extension is subject to negotiation between both parties.
Can I get a copy of the proposed insurance contract?
Yes, we can provide you with a copy of the standard insurance contract. Please feel free to reach out for more information.
What are the legal and contractual provisions in the event of a co-owner's death?
In the event of a co-owner's death, property rights management is typically governed by the co-ownership contract, with terms that may vary based on individual circumstances. Consulting a notary can help clarify inheritance rights and ensure they are properly addressed.
