Thread: Real Estate Prices on Bali

How is it that a thatched roof two bedroom villa with a ten foot swimming pool in seminyak costs $300,000 USD. That is rediculous. The peolpe selling these properties and the owners themselves must be making a killing. Labour and materials are cheap in Bali, right? How can a 2 bdrm villa with a dinky ass pool be $300,000 USD. I hope it would be outright ownership and not some lease. Is anyone experienced in these matters?

Just found this information about real estate on Bali... it is a bit daunting, they require you pay an indonesian citizen 150,000,000 Rp./month, are they joking or is it 150,000 per month. Who are these people?

It is, for now, impossible for a foreigner to own property in Indonesia. There is a chance that this will change in the future. The Indonesian government has taken a more and more flexible point of view on this matter. In the mean time you will have to use a contract that is strong enough to give you the legal protection you need for your property. The advantage of this contract is that you don't have to pay the 5% handling tax. Another advantage of this contract is the simple adjustments needed in the contract when you want to buy a house with other persons. (time-sharing) In Indonesia the land has to be registered in the name of an Indonesia citizen. We can use someone with whom we have already done business with for several years, and has long proven to be 100% trust worthy, or you can use an Indonesian person you know. We offer you a legal construction that will give you full protection.

The contract is made out of 4 parts that contain the agreements of cooperation. According to Indonesian law there has to be a balance between the two parties. Our contact will give you his services and for that you will honor him namely in payments. You will pay him Rp. 100.000,- per month for his legal protection for your property, which will be at a rate of Rp. 8.000,- or approximately 12,50 Euro. In this way you have created a balance according to Indonesia law.

Contract Part 1 - Describes that the foreigner will supply the money to the Indonesian citizen in order to buy the land and the house on the land. The Indonesian citizen will give, out of free will, the land and house on it permanently to the foreign citizen to take use of it as his home. The Indonesian citizen is owner, so he has his share of responsibility in care of the property. All mail that is related with the land and house will come through him to you, the bills for electricity and water will be directed to him too. For this he will receive payments as described above. He will also receive 5% of the profit made when you decide to sell your property. Further it states that the Indonesian citizen has given you his permission for selling, renting, and eventual changes to the house. There are procedures of arrangements in the contract that have to be made in case your properties are inherited, and that the cost for water, electric, and property taxes (20 Euro per year) will be the responsibility of the foreign citizen.

Contract Part 2 - This part describes in detail the actions that have to be taken when you want to sell your property and that the Indonesian counterpart fully gives his/her permission to sell the property.

Contract Part 3 - Here it says clearly that the foreign citizen is allowed to lease or rent out the property.

Contract Part 4 - This part describes that, when it is possible for the foreign citizen to become owner of a property when the Indonesian law changes, the Indonesian counterpart will have to abide by his duty to help / cooperate in changing the contracts so you will be owner of the property, and in case there is a change in the law that would negatively effect you, that the contract of agreements with your Indonesian counterpart will be changed into a lease contract for a long time period of 50 years with the right and option for extending it. If you at any time decide to stop your contract with our contact, and cooperate with another Indonesian counterpart, the Indonesian has to cooperate. In this circumstance it is your duty to pay him his losses, namely his monthly payments for the period of 25 years at once that in 25 x 12,50 x 12 = 3.750,- Euro/Dollar on a rate of 8.000. You also will protect yourself in this way from the chance of a higher cost relating to the percentage of extra profit made by selling the property as this can not be higher than the price you pay when stopping the contract!

Thanks bert for the details and info.. i have been to seminyak before but had no idea it was any more expensive than any other area. Why is it more expensive than other areas? Is it the proximity to kuta and legian?

Yes, as Bert mentions, “the Yak” as it is called, is considered upscale with lots of trendy shopping and restaurants. I agree, the real estate there is considerably overpriced.

I have found nice, relatively sizeable oceanfront homes and villas on the north coast of Bali (primarily in the Lovina-Singaraja stretch) for US$50-60K. Similar homes in the southern tourist areas can be 4-5 times as much. It's a bit off-putting, but real estate in Bali is no different than that anywhere else. It's about location, and it's about supply and demand. If buyers wouldn't pay those prices, sellers wouldn't put those price tags on the properties!

To be honest, land prices in Bali are cheap. Compared to a similar market such as Thailand around Phuket and Koh Samui my gestimate is prices are about 50% cheaper. And like everywhere they are determined by supply and demand. In Western cultures cashed up baby-boomers are looking for somewhere to retire; a little piece of paradise. They have superannuation, and want a lifestyle that has luxury and the exotic, and Seminyak provides it.

...and want a lifestyle that has luxury and the exotic, and Seminyak provides it.

Exotic? What is exotic about the Yak? Most of the villa developments there are large compound like arrangements where all your neighbors are other westerners.