What is the difference between freehold and leasehold investment?
Source: Youtube, Trevor explains the difference between freehold and leasehold as follows:
For residential development, freehold and leasehold are the two options
So, here’s the difference between those:
Freehold means, that you actually own the land. This is exclusively for Indonesian residence. It is very important that you understand that. Some of the agencies will tell you, that you can invest in Freehold land, which means a lot of grey areas and risk. They may tell you, that you can hire a nominee, an Indonesian local partner, to do it. But we highly advise that you don’t take this route.
Leasehold works very similarly to Freehold. That’s all the benefits, and that is where you lease the land for an extended period of time. Leasehold is often actually cheaper than Freehold to acquire, you can have better Roi from leasehold. Lasher so this is one of your main option as an investor in Bali how do we sold work are you coming to an agreement with a local Bali landowner off in a farmer you create an agreement between the two of you your name will actually be on the lease for the duration of time that your contract will be for usually 30 years of front ipe decking full many of the option to extend usually it’s another 20 years and then another 30 years the reality is that you can extend for as long as you want as long as you make the agreement with the landholder I know it when you negotiate the price of the landowner if you want to extend that. Beyond the first 30 years just know that you will then pay the amount of land is worth at the time of extension so naturally another question you may be asking is what are the legalities what’s required do you need any special Visa business permit are you protected and the answer to that is you don’t even need to be here actually many of our foreign investors do everything remotely in fact many of our investors have never been to Bali before they just get all the benefits of 40% Roi by investing here we do everything remotely do we have one of our lawyers handle everything with your contract everything is created in a binding contract with your name on it for you to even pass your lease hole that’s your next of kin if you’d like the provable from the landowner and answer is that all building plans are approved by the government and I envied certificate why build your own better than just buying one that’s already been done for you and the answer to that is a few different reason so if you’re buying somebody else’s bill at they just made you’re not getting the equity in that now you’re also not getting your own custom design and finishing which part of the fun part of the value Fayetteville NC on Philip another reason is that you don’t know the bones of your Villa the bill is steel-reinforced concrete long warranties in insurance covering a building if anything breaks were there two repaired immediately and last but not least you don’t have to pay for everything up front if you’re developing your own Philip you pay as you go getting all that money isn’t tied up right now that you understand what your best option is for investment about the legalities and I are protected I was talk about what the process is so first baseman just get together and chat about what you’re looking to do we decide what type of building is looking to build with the sizes for the specs are in the areas that you’re interested in what’s inside of this we start looking around for land for you in the areas that you’re interested in searching for the best prices possible as soon as we get it and we understand that the land is in good standing can we go and put an offer on the land and it’ll be paid in full for the first 30 years after this we start drawing up the building plans start designing your Villa after the land security start drawing up the plans for your plans are usually take around a month to get done and there’s a series of drawings so it’s the architectural plans structural mechanical engineering employment what’s the plans are finished we start searching for the proper contractors to get the bill done what you have the plans ready 15% down payment to the builders go go ahead get started but as we go along to your build slowly pay incrementally as more and more work is finished nothing for you. Not sure if you have any questions which I’m sure you probably do please get in touch with us leave a link below where you can contact us for some more information thanks and we look forward to making your dream come true here in Bali.