Lombok Property and Investment
With its unique culture, strategic position, and beautiful sceneries, Lombok Property Investment has successfully has helped fuel Lombok as a popular tourism and hospitality hub.
Because of its proximity to Bali and Sumbawa, this beautiful island has altered its travel and tourism industry, attracting a great number of visitors in recent years.
As a result, a growing number of foreigners are flocking to Lombok to buy a rental property. We’ll cover all you need to know about investing in the Lombok rental market in this article.
Lombok Property Investment has made Lombok a desirable location for purchasing a vacation house with a good rental return. Here are four reasons why Lombok is fast becoming Indonesia’s newest rental paradise:
Indonesian Government Assistance
The Indonesian tourism ministry has picked Lombok to invest in and enhance the country’s tourist destinations, with the goal of drawing at least 20 million people yearly. The government opened Lombok International Airport in 2011, began construction on Mandalika Resorts on Lombok’s southern shore in 2017, and has promised a slew of other infrastructural projects to increase the island’s prominence in the future.
Limited supply of high-end housing.
Because an increasing number of tourists lack the comfort of high-end holiday villas or apartments, investing in Lombok gives a rich opportunity for business in luxury accommodations. The demand for upmarket residences will only grow as world-class events such as the MotoGP 2021 come to Lombok.
A market that is open all year
The tourist market in Lombok is never dry, even during the rainy seasons, because of the wonderful weather all year. Regardless of the month, the rental property is likely to have a high occupancy rate.
Operational Costs are Low
Last but not least, in the current market, the cost of purchasing and maintaining a rental home in Lombok is quite low. An excellent two-bedroom home in an affluent neighborhood, for example, would cost roughly US$400,000. When investing in Lombok, one can expect strong rental returns due to the low cost and great demand for accommodation.
Understanding Property Rights and Licenses When Investing in Lombok
Property Rights
One of a business owner’s responsibilities is to safeguard the company’s assets, such as land and property. Indonesia has several land restrictions on foreign nationals. Certain ownership rights include the following:
Right to Construct
The HGB (Hak Guna Bangunan) certificate, commonly known as the right to build certificate, authorizes investors to develop structures on particular types of land. Investors that purchase a right to build certificate can use the land for up to 50 years. If the used land is under state ownership, however, the lease can be extended for another 30 years, for a total of 80 years. It’s worth noting, however, that the HGB certificate is only available to Indonesian citizens and Indonesian-based businesses like PT PMA.
Right to Use
Forming a PT PMA is one of the most effective ways to obtain access to land in Indonesia. Expats who are unable to join a PT PMA may, nevertheless, secure a “right to use” title and use Indonesian land. It can also be rented with the “right to use” for a maximum of 25 years. Depending on the terms of the lease between the lessor and the lessee, it can extend up to 80 years.
Property Licenses and Permits
Homestay License
Under the rules of a homestay license, a visitor can stay with a local family for a fee. Rooms are frequently more basic or less expensive than other forms of housing. A Pondok Wisata license, often known as a homestay license, lets you run a vacation rental villa with 3 to 5 rooms. It should be emphasized that Pondok Wisata licenses are only available to Indonesian citizens. Foreigners must first incorporate a PT PMA in order to receive this license.
Hotel License
If a facility plans to provide more than 5 rooms, it will need a comprehensive hotel license, also known as a Melati license. The hotel, for example, must be situated in a tourist area and be around 500m from the beach.
Begin your Lombok property investment with Lombok Island Property.
Lombok Island Property’s comprehensive company setup solutions minimize the time it takes to register a business in half and deliver hassle-free services. LIP also assists you in putting up your land and property investment plan in the most secure way possible, in addition to market research to avoid any traps. We also offer immigration services such as obtaining various sorts of visas and consulting to assist you to keep on top of legal requirements. Contact Us