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How much budget would i need to build a villa in Bali?
Hi everyone,
Thank you 1st for a very informative forum and i have spent some time going though the different threads trying to get a grip with building a holiday/retirement home in Bali.
One question i keep asking myself is how much capital would i need to actually need to build a villa? On the surface this seems like allot to ask as there are so many components and variables involved in the question itself, so I'll try to be a little more precise in my hypothetical quest.
From what i understand the breakdown of costs would be as follows:
Stage 1:
Purchase land + building permits + notary costs + "additional costs"
I will purchase the land through my best friends son (UK friend married to Indonesian wife whose son has dual passport) who would act as the nominee. We would then lease the land and build over a period.
Stage 2:
Architect costs + Contractor costs + material costs + "additional costs"
I read on here that the total PM costs of building the villa vary from 2.0J m2 to 7.5m2. Is this correct? So I'm guessing around 3.5 - 4.0MJ per M2 would get you a good standard on finish including a pool of 5M x 3M?
Now i know that location or the land is also an important factor in all of the above, so as an example, what investment would one need to build a villa of 150 M2, or 200 M2, or 300 M2 in Seminyak, or Canngu, Munggu, or Beleang, or Kerobokan, Keramas etc?
Or another question would be "how much villa would (USD) $100,000, or $200,000, or $300,000 get me in Bali" if we followed the above principles and which location would these be in.
I know i have probably missed lots of things in my plan, i'm sure you guys and girls will help to fill in the gaps. Thank you in advance.
Having been coming to Bali for over 10 years we're ready to seriously look at building our dream home, but we want to make sure we've really thought and planned ahead before we even start the process.
Thank you all again for such a great forum.
Hi scooterboyssteve,
first of all welcome to the forum.
Stage 1 :
When your best friends son turns 18, and then within 3 years he has to decide wich nationality he wants...i.e. Indonesian or foreign, he decided to choose the foreign passport
instead of the Indonesian passport.. Then what do you do?
And I would say stage 1 is just buying the land and then the notarycosts for the contracts etcetc.. Some people own land for a couple of years and then start building their 'dream home'
Stage 2 : architect/contractor, IMB, etcetc...
As dor the budget (100,200,300k) If I were you, I would on the next trip seriously start looking for land and then take it from there.
Landprices keep going steadily upwarths, so what you might get today for 30million per are, can be 40million per are next month..know what I mean?
But first of all, take another look at how/who you want to 'use' as your nominee.
friendly greetings, gilbert.
don't read between the lines..i think the words are clear enough...:)
Thanks for the feedback Gilbert.Originally Posted by gilbert de jong
From speaking to my friend, he believes his son is able to keep both passports when he turns 18 and the UK don't take away your passport status, even though he may have a different one. That said, i/we have a number of years to come up with an alternative solution should this be the case, including going down the PMA route.
With reference to looking around, I'm due to be in Bali again in Oct and then for Xmas so I'll certainly look at getting out and about and looking at some potential plots. Can you recommend any good agents to meet up with?
Just looking at your figures, lets say I were to purchase 1 acre at 40J for the arce. Roughly speaking, we would need to cover for the IMB + Construction costs of lets say 4J per M2, and lets say the project building space was 400 sqm.
So this would equal:
Land Cost - 40,000,000.00
Construction Cost - 1,600,000,000.00
+ IMB + additional costs etc etc of (10% of total costs)
So would i be right in saying that we would be looking (very roughly) at around 2,200,000,000.00 (IDR) = 156,792.55 (GBP) for a 400 M2 villa built on an acre of land?
I may be way off but please let me know.
Thanks again...
Last edited by scooterboysteve; 25-08-2011 at 02:25 PM. Reason: wrong figures
You're welcome,
just thought give you a heads up about the passport thingy, because if the indonesian government (imigrasi/kelurahan) knows about his dual citizenship,
he will be 'forced' to choose one nationality before he celebrates his 21st birthday. Dual citzinship is not legal in Indonesia (but then again, alot is not legal but happens anyway here)
1 acre is 40 are(little bit more, but the math is easier this way), so that would be 40 x IDR. 40.000.000,- = IDR. 1.600.000.000,- for the land purchase.
then add 5% of that for the nominee, another 5% for salestax, and 2,5% notarycosts = IDR 192.000.000,-
if you put a villa on it, wich measures 250sqm @ 4jt per sqm, = IDR. 1.000.000.000,- (contractors usually ask for an percentage of the estimated buildingcosts as their wage)
costs of IMB (roughly) 2% of buildingcosts = IDR. 20.000.000,-
That would give a total of IDR. 2.812.000.000
Back to the architect/contractor, since he gets an percentage of the estimated buildcosts as a wage...you wouldn't be the first who pays for estimated A-quality, but the contractors puts in B-quality stuff, by doing so he is enlarging his profit...so imho, you need to be here during the build to make sure what you paid for actually goes into the building. just a heads up.
If you're up north or east of the Island, I could introduce you to a friend of mine who will drive you around visiting land for sale.
he's canadian/hungarian and has been on the island 15+ years, married to a Balinese woman.
imho a stand-up guy and if you explain to him what kind of land you're looking for he won't waist your time driving to places with no similarities to what you're searching
I know this because he helped me find the land where I've build my house :)
don't read between the lines..i think the words are clear enough...:)
In the areas you want to live, there is nothing for Rp 40 mln per are. Think more of 100 to 200. 300 to 400 if 1km to the beach.
One way to get a feel for what you can get for your money is to look at the existing villas for sale. You will find properties for $100,000 or less - going up to any high price you name. After looking at a range of proprieties and taking note of
* land size
* building size
* main features like beach-front, river view, ricefield view or whatever
* proximity to high price areas like Ubud, Canggu, Jimbaran, etc
you will get your "eye in".
And, who knows, you may even decide that buying an established property is the easier path to follow.
Building
After my personal experience with building (on Gili Trawangan, Lombok) 2001, I can say with 100% surity, never again. We had 3 different buildingcrews during our construction time. 1 crew left and never came back (to far from home they said). 1 crew was fired because they where stealing our material and selling it, last crew stayed until all was finished but didn't do a satisfactory job. We where so fed up at that time that we just had to get the job done. I can add that the people stealing from us was in family with my husband, when confronted the answer was "your wife is so rich that it's no problem for her". I'm not a rich person by the way. We lived no more then 150 m from our buildingsite and was supervising the job daily but it was still a nightmare. My husband's local and speaks the local language but it was still a really bad experience for us. So my advice would absolutly be to buy a house instead of building one. It will save you money, sleepless nights, tears and frustration.
markittttt....where oh where is markit? I am sure he has some good comments for this thread.
don't read between the lines..i think the words are clear enough...:)
Hey Gil! Buddy how is it goin?
I'm in Germany at the moment. Wie Geht's?
Skooterboy....
Building a villa on bali was the most fun I've ever had with my cloths on and if you live in the UK and want to chat about it drop me a PM with your number and I'll be in touch next week.
Other than that it's really all been written here just have the time and patience to dive back into the Balipod files and get stuck in reading.
Oktoberfest starts in 2 weeks!!!
yeeeiiihhh markit, Man you get around...france,uk, italy and now back in germany, ow and ofcourse NL hahaha.
Aber es geht mir gut mein freund, Ich hoffe mit dir geht auch alles gut, bist gesund und happy!
woei..oktoberfest, now that's something the germans should have a sosial cultural visa for ;)
I didn't want to be the first to say, that building your own home on Bali (like you did and I did) can be so much fun. Ofcourse there are ups and downs, stok habis pak, belum ada pak..etcetc but that's part of the fun...maybe not so much right there and then, but sure makes funny stories for when your build is done, sitting on your own terrace sipping a beer/wine/**** whilest remembering those times.
don't read between the lines..i think the words are clear enough...:)
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