Insurance scheme for deposits on real estate developments?

serious_fun

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I searched around a bit online, but could only find information regarding insured bank deposits. It's probably right in front of me...

So, I wonder if any of you fine people can answer my question: Is there a national policy or scheme (similar to bank deposit insurance) to protect investors in Indo?

thanks in advance.
 

waarmstrong

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I think there is up to a certain amount, but I am too lazy to research and back up my opinion with facts.
 

serious_fun

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Thanks. I couldn't find any references to deposit insurance for individuals investing in real estate directly with developers.

'REIT type' for collective investments, such as Dana Investasi Real Estat Berbentuk Kontrak Investasi Kolektif (DIREs) , but what about protecting individuals?

Do any of you have experience with brokerages or something similar in Indonesia?
 

snpark

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If in doubt use a lawyer escrow account but doubtful developer will allow it hence no protection hence caveat emptor
Buying property here is a big risk for a foreigner
Plus it's a renters market anyway
 

waarmstrong

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I don't think there is any such protection for real estate investors anywhere across the world. For most any investment the market balances risk and reward; if you buy insurance to lay off the risk on someone else, or more aptly, a group of buyers, then the cost of that insurance would likely, coupled with the investment, bring the return to near or below zero.

If you are speaking of mortgage insurance, something which some mortgage lenders, including some in Indonesia, require the mortgagee to buy, that's a different animal. Its an added cost to the property buyer/borrower and a protection more for the lender, assuring payment of the mortgage, if tragedy befalls the borrower, death for example.

There is also title insurance, an alternative in some US states to hiring a lawyer to render a title opinion, backed up by the attorney's malpractice insurance.
 

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