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Expat Exchange - Buying a Home in Papua New Guinea
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Buying a Home in Papua New Guinea

By Joshua Wood, LPC

Cigna Global Health
Cigna Global Health

Summary: The one tip that you hear expats living in Papua New Guinea repeatedly sharing with newcomers is not to buy a home when you first move to Papua New Guinea. Rent for a few months or longer so that you have time to find the right neighborhood. Give yourself time to ensure that Papua New Guinea is right for you for the long term. If you've already taken time to do those things and are ready to take the plunge and become a property owner, here are tips about buying a home in Papua New Guinea.

Buying a home in Papua New Guinea (PNG) as an expat can be a complex process due to the unique laws and regulations of the country. This guide aims to provide a comprehensive overview of the key aspects to consider when purchasing property in PNG, including finding houses for sale, understanding foreign ownership restrictions, navigating the local real estate system, and more.

How do I find houses for sale in Papua New Guinea?

There isn't a centralized MLS-type system in PNG. However, you can find properties for sale through local real estate agencies, online property portals, and local newspapers. It's also common to find properties through word-of-mouth, so networking with locals and other expats can be beneficial. Always ensure that the real estate agent or agency you're dealing with is reputable and licensed.

Are there restrictions on foreigners owning property in Papua New Guinea?

Yes, there are restrictions on foreign ownership of land in PNG. The majority of land in PNG is traditionally owned and cannot be bought or sold. However, a small percentage of land, known as state land, can be leased. Foreigners can legally lease state land for up to 99 years. It's crucial to consult with a local lawyer to ensure that any lease agreement is legally sound and properly registered.

Does Papua New Guinea have an MLS type system?

No, PNG does not have a Multiple Listing Service (MLS) system like in the United States. Property listings are typically scattered across various platforms, including real estate agency websites, online property portals, and newspapers. It's important to do thorough research and possibly engage a local real estate agent to help navigate the market.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate agents in PNG are required to be licensed under the Real Estate Agents Act. You can verify an agent's license by asking to see their license or by checking with the Investment Promotion Authority (IPA), which is responsible for licensing real estate agents.

What documents are required when buying a home?

When buying a home in PNG, you'll need to provide several documents, including a copy of your passport, proof of income, and a bank statement. If you're leasing state land, you'll also need a copy of the lease agreement. All documents should be verified by a lawyer to ensure their legitimacy.

Do I need a lawyer when buying a home in Papua New Guinea?

Yes, it's highly recommended to engage a lawyer when buying property in PNG. A lawyer can help verify the legitimacy of documents, ensure the lease agreement is legally sound, and assist with the registration process. Legal fees can vary, but you should budget for around 1-2% of the property value.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in PNG. Some people choose to buy property outright, while others take out a mortgage. Mortgages in PNG typically have a term of 20-30 years, with interest rates varying between banks. It's important to shop around to find the best mortgage deal.

Are there inspections that take place, and if so what is that process like?

Yes, property inspections are common in PNG. A property inspection typically involves a thorough examination of the property's condition, including the structure, plumbing, and electrical systems. It's recommended to hire a professional inspector to ensure the property is in good condition and to avoid any potential issues in the future.

What are some of the pitfalls to avoid when buying property in Papua New Guinea?

One of the main pitfalls to avoid is not thoroughly understanding the restrictions on foreign ownership of land. It's also important to ensure that any lease agreement is legally sound and properly registered. Other pitfalls include not conducting a thorough property inspection, not verifying the legitimacy of documents, and not engaging a lawyer. Always do your due diligence and seek professional advice when necessary.

About the Author

Joshua Wood Joshua Wood, LPC joined Expat Exchange in 2000 and serves as one of its Co-Presidents. He is also one of the Founders of Digital Nomad Exchange. Prior to Expat Exchange, Joshua worked for NBC Cable (MSNBC and CNBC Primetime). Joshua has a BA from Syracuse and a Master's in Clinical and Counseling Psychology from Fairleigh Dickinson University. Mr. Wood is also a licensed counselor and psychotherapist.

Some of Joshua's articles include Pros and Cons of Living in Portugal, 10 Best Places to Live in Ireland and Pros and Cons of Living in Uruguay. Connect with Joshua on LinkedIn.


Cigna Global Health
Cigna Global Health

Cigna Global Health
Cigna Global Health

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