RE humor in the NYT

**DCC** · 10-05-2009, 05:03 PM

Here's a recent entry from the NYT RE Blog, I've pasted the good parts!

It seams the Bali market has remained strong....what market could they be speaking of? When I moved here in '05 I was always checking the listings of Elite & Exotiq and there were at best 4 or 5 listings over the $1mil mark. No history to gauge in my opinion ! And $1,400 - $2,200 per night?

But they say the buyers are looking - I have a vision of tour guides leading groups through the padis and down the beaches in search of that elusive $3.5 million dollar Bali crib!

That should not be too much of a chore though because here we are 4 years later and I just checked to see that Exotiq has 6 PAGES of homes topping a million. Plenty of product for those happy HK & S'pore banking execs :)

http://raisingtheroof.blogs.nytimes....illas-in-bali/

Since the project was completed in August 2008, three of the villas have sold; the remaining two are priced at $3.7 million and $3.4 million (2.8 million euro and 2.6 million euro). The initial buyers have come from Hong Kong, New York and Europe, Mr. Echene said.

Buyers have been looking for second homes, as well as rental income, Mr. Echene said. Units rent for between $1,400 and $2,200 a night (1,000 euro and 1,700 euro), depending on the season.

The Bali market has managed to remain strong, despite the downtown, Mr. Echene says. Finding actual data on Bali is difficult, but a case can be made that it will be more resilient than many markets. The villas in Pantai Lima are offered on a freehold basis, but buying property in Bali can be tricky for foreigners. More information on buying in Bali can be found here.

**Markit** · 10-05-2009, 05:48 PM

I sometimes think there is a whole different race of humans that are running around this planet that really don't have anything to do with my and my friends and family's ideas of "reality".

During the financial hay days of the recent past there were many of the "Lords of the Universe" or leaders of the big financial houses as they were known then (don't times change :cry: ) who not having the time to go themselves, would buy multi-million dollar houses on Majorca or near London sight unseen. They would simply call up the estate agent and say "I'll have that one, send the contracts".

Is it me? or do these people come from some kind of cocoon under the bed?

DCC what do you put the change in Exotiq's offer down to?
1) increased activity in the sales of high value homes - more on offer due to hard times ie forced sales or more being built (due to better sales chances?)
2) Success of Exotiq's marketing department in attracting sellers?

I know personally of a series of 3 beachfront villas that cost each 1.5 billion to build and were each on sale for 600 - 700 K USD. Building has stopped on 2 and the first finished one is being used as a show home for potential buyers that aren't to thick on the ground, it would seem...

**DCC** · 12-05-2009, 11:41 AM

I think it's a number of factors - more wannabe developers throwing larger amounts of money on the ground and expecting it double - people listening to RE agents for investment advice (that advice is a criminal act in many countries) - and people listening to RE agents about the "hot" Bukit cuz that's where many of these houses are located, crowded with spec homes but not residents me thinks (what the hell is there to do on the Bukit if you're not a world class surfer?)

**sydneymike** · 18-05-2009, 01:23 PM

Hey DCC, as a Developer/Builder you should be enjoying the market?

The fact is, there is a difference between value for money and market value? The Bali property market, unlike Jakarta, is driven by foreigners in terms of both practises and valuations. There is only one Bali, which is why we all want to be here, until of course over-development destroys the very reasons to be here? Bali is small and so prices rise, pushing up land taxes and forcing the Balinese off their land, either to cash in or because farming no longer covers land taxes and makes a living. That's the free markets in action? And remeber there is a lot of money in the world, even now

Agree about Bukit but would add that even if you are a world class surfer you must be prepared to drive every time you want eat out and must remember to get regular water truck deliveries if you want to shower etc. I guess the people there are prepared just to sit and look at the view 24/7?

Similarly, I can't understand why people will pay $600K-$2Million for little villas in Seminyak with poor quality construction and "designs" which are essentially all the same (Pool Bale, token Kamboja in the corner etc.) only to find someone else has just built another villa with an 18Ft wall between you and the Sawah. Then the increasing noise, crime and pollution etc. Paradise found?

And this is all before the legal problems with Nominees start to happen, as they now already are.

But then you know all this DCC. It's really all just a case of "Caveat Emptor"? But if the SIN/HKG Bankers want to get screwed and throw their money away, IMHO, it couldn't happen to a nicer bunch of Guys!!

**Anton** · 18-05-2009, 04:10 PM

Must be nice being a banker being able to play monopoly for real with other people's money :lol:
I wonder how many of us would enjoy this life :P

Maybe in the next life :mrgreen:

Nantiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

**gilbert de jong** · 18-05-2009, 10:26 PM

Hi peeps,

I see you asked DCC, but if you don;t mind I put my two cents in too, :lol:

Originally Posted by Markit

DCC what do you put the change in Exotiq's offer down to?
1) increased activity in the sales of high value homes - more on offer due to hard times ie forced sales or more being built (due to better sales chances?)
2) Success of Exotiq's marketing department in attracting sellers?

1) I think there's more available to buy for the simple reason that more houses have been build, the reason that the owners "advertise" at Exotiq's is because of the "sort of people" the owners want to reach.
2) I think (know) that it's a small world in the upper-class real-estate, and many owners (investers) know who's who and throw business to one another, if you know what I mean?

Sidneymike, I am not on a personal crusade against you or the opinions you state here on the forum, that being said I would like to react/give my opinion, to some things you wrote....