Foreign Practice in Bali – Buying Real Estate in Bali
The most common practice for foreigners buying into Real Estate in Bali with a leasehold scheme, most banks will though not lend against a lease as they don’t look at it as an asset.
With a Hak Pakai certificate, you purchase the Hak Milik (freehold) titles, and during the process, the notary changes the certificate to Hak Pakai, this process takes about three months after full payment has been received. To be qualified for a Hak Pakai, you need to have a residential permit (KITAS) in Indonesia which you will get from a company that sponsors you.
If you do a bank loan, most banks will hold the certificate as collateral until the loan is paid off. Whether you would qualify for a bank loan in Indonesia or Singapore would be a different story. Indonesian banks requests normally 2-year records of income etc. before they issue a credit to foreigners. If you require a loan as part of the transaction, I would suggest you talk with your bank in Singapore to see if they can help