Bandung Property Investment : 2008

These are a few tips when dealing property in Indonesia :

Make sure it is in good condition. Repainting the walls, fixing leaks, door knobs and mowing the lawn are some list of work that must be done. If it is in superb condition, as the owner we will have confidence while presenting the property. And in whole it will give a higher perceived value.

Determining the right market value. This is not an easy task. Whether you want to sell your property or open it for rent, the determining the right price is a challenging task to do. It would not hurt if you ask the market value in your area with a specific condition. That’s the easy way. For more precise valuing of property than you can appoint a property appraiser consultant.

The status of Ownership is also an important thing to know. In Indonesia there are largely 2 known different types .They are SHM (Sertifikat Hak Milik –Total Ownership Certificate), foreigners are prohibited to own with this Rights .The other one is HGB (Hak Guna Bangunan – Right for Utilizing the Building) which means we have to extend the Right for a certain period of 20- 30 years. There are also Hak Guna Usaha (Commercial Use Rights) and Hak Pakai (Use Rights).

Knowing the tax incurred in a transaction is important. For property selling in Indonesia, you will be charged 5% x NJOP or transaction value , which ever is higher. NJOP stands for Nilai Jual Obyek Pajak which means Selling Value of a Tax Object.

Finding the right Authorities for transaction. In Indonesia it is known as PPAT (Pejabat Pembuatan Akte Tanah – Authority Creator of Land Act ). Usually the firm has a certified license to do transaction of property. The firm also usually is a notary. The cost of such service has a variety depending on each case. Minimum payment is around Rp 1.000.000,- equivalent to : USD 107 . This cost includes all the legal documents that will be created upon transaction. This cost is also assuming that we have already prepared the right documents.

Some documents that we usually must prepare are : KTP (Kartu Tanda Penduduk - Permanent Resident ID), KK (Kartu Keluarga – The Family List Card legalized), Buku Nikah (Official Marriage Certificate) for married couples, the IMB (Izin Mendirikan Bangunan – License to Build a Building).

The final day of transaction called the signing of AJB (Akta Jual Beli –The Buy Cell Certificate). A legitimate transaction of property must coincide the data that is kept in the BPN (Badan Pertanahan Nasional – National Land Authority) to avoid false transaction by parties not owning the property.

Labels