Indonesia is one of the largest markets for real estate in Southeast Asia and it is one of the growing markets in terms of real estate investments. The average growth of the economy at present is a little over 5% and it is one of the highest in the region. China’s real estate market has reached the saturation point which means that the property is already overpriced in the region. In this article, we have listed all the details about investments in Indonesia property market.
Can I own a Property in Indonesia?
If you are a citizen of Indonesia then you can hold the property under freehold title in the country, however, if you are a foreigner, you would have to obtain the property on the lease and the title for the lease is called SHM. In Indonesia, the lease is given for 25 years and this can be extended for a total of 70 years.
What are the Taxes that Property Investment in Indonesia is subjected to?
In terms of taxes, the government charges a transfer tax which is 2.5% of the sales value of the property. In addition to this, there is another 1% of land acquisition duty on the sales price of the property and sales of the luxury house also attracts 20% sales tax. The rent income also attracts a 20% income tax.
What is the area in which property can be bought in Indonesia?
There are some of the prime locations which are really attractive investment locations. This prime location includes Jakarta, Surabaya, Medan, and Bali. The purpose of property investment should be clear before making any investment and it is always in the best interest to check with a local property dealer about the laws concerning to the ownership of property.
Indonesia Property Market is surely at the boom and it is doing really well in terms of capital appraisal and development. The investment in the market can surely bring you a good amount of returns from the property.