Purchasing and investing in real estate in Lombok Indonesia is a fantastic and lucrative opportunity. A recent influx of foreign investment capital, particularly from rich Gulf region oil producing countries are such as Qatar and the U.A.E have turned these peaceful island sanctuaries into a truly mad investment frenzy. Qatari Diar, the real estate branch of the Qatar government’s sovereign wealth fund, is almost certain to win the bid for a six hundred million dollar tourism project located in Lombok, the most prominent part of Gita Wirjawan. Many local economists claim that the Qataris are indeed the most serious bidder as they formally met the local authorities well ahead of time.

It seems like everyone is trying to snatch up Lombok real estate; everything from a luxurious hotel condominiums with complimentary 5 star service, modest mid rise apartment complex units and sometimes even humble village shacks on tiny 100 square foot lots. It’s no wonder that Lombok, Indonesia is literally poised to become the next Dubai.

Undoubtedly Lombok has a lot of hidden gems that present incredible and unprecedented investment potential. The proximity of this island to the prime tourist destination of Bali is undoubtedly a huge plus. However, when one examines the natural beauty in the area it is apparent that the Lombok region has been completely overlooked by Western business over the past few decades. Thus, it isn’t really surprising that there has been a sudden, crazed flood of foreign investors currently pouring in to purchase Lombok real estate. This can partly be credited to recent social media applications which have truly taken the concept of viral news to the next level.

For starters, Lombok boasts gem like turquoise waters, rolling hills, sprawling, lush tropical jungles, and tons of spectacular postcard worthy mountain valley vistas. Scuba divers and ecologists will appreciate the unique and unrivalled abundance of completely undisturbed coral reefs less than a mile of the shore. The main natural amenity, however, that many believe place Lombok ahead of Bali are its dream-like pristine white sand beaches. Only the Caribbean boasts resorts that can rival these beaches, however, at Lombok property you can buy quality beachfront plots for the fraction of a popular timeshare condominium in the Bahamas. Beachfront property in Lombok is truly one of the most exceptional real estate investment opportunities in the world.

Many foreign investors often forget that government regulations are completely different than back home. First, foreigners cannot legally own property in Lombok. However, if you do your homework you can develop strategies to work around this challenge and buy the vacation home of your dreams. The most popular method is to go about creating an official legal agreement with a trusted Indonesian nominee. This can be either a person or a business, whereby they hold the actual ownership rights to a property. Make sure to contact an attorney specialized in real estate and grant the full rights from the Indonesian nominee to the foreign party. However, this is risky and like any third world country can result in serious scams. Many people have lost an excess of 100,000 US dollars by literally entering into a contract with the first local they meet. However, it is only courteous to verbally agree to pay your nominee at least 2% of the commission upon selling a Lombok property.

One clever loophole to deal with this issue is to set up a foreign investment business, which will probably be solely owned by a foreigner, and the title of the business will probably be in the business name. Nevertheless, the title in this case will officially last for a period of up to 30 years, as businesses need to then re-apply to the government of Indonesia to extend their license for an additional period. However, if you are leasing a property you can do this legally as a foreigner who is of the official age of majority. Create an official lease agreement investment in the foreigner’s own name, generally for a period of twenty to thirty years, which is extendable. I should stress, however, that this technique does provide full legal protection to the foreigner during the term of the lease; nevertheless, once the lease term has expired the property reverts to the owner unless extended.