gtrken
As the post states , i have a kost ( actually probably a 3.5 star Hotel ) for sale in Bali , running and complete with all linen , washing machines, offices , security box , kitchen and full staff including manager Land is 700 sq metres 10 rooms all with ensuite, a/c , 120 litre fridge , desk , queen bed, wardrobe , security deposit box , upstairs gazebo as well as poolside gazebo , 12 metre pool plus more listed on various booking sites ( airbnb , Agoda , trip advisor etc ) and have very good reviews. Good clientele ( mainly European) with strong forward bookings coming into Christmas season. Comes complete with 2 year old Suzuki APV and 6 Honda spacy motorbikes ranging from 2 years old to 2 months old. The whole building, pool , equipment etc is all less than 2 years old. Price is 5.75 Billion and the usual 5% commission is paid to the successful agent. Reason for sale is amortising my assets and concentrating on investments is Australia Check it out at [url=http://www.kennethakost.com]Kennetha Kost - Home[/url]Cheersken
gtrken
Kost is under offerCheersKen[url=http://www.kennethakost.com]Kennetha Kost - Home[/url]
Markit
Pardon my scepsis but most people don't sell a good going business so quickly after investing so much money, time and effort in it's realization. You built this up as a complete concept that seemed to have every chance of being a rousing success. I (and I'm sure many, many others) would be grateful and interested to know the reasons behind your decision. What went "right" and what went "wrong" - we can all learn from it I'm sure. If not now then perhaps after the sale?
gtrken
Pardon my scepsis but most people don't sell a good going business so quickly after investing so much money, time and effort in it's realization. You built this up as a complete concept that seemed to have every chance of being a rousing success. I (and I'm sure many, many others) would be grateful and interested to know the reasons behind your decision. What went "right" and what went "wrong" - we can all learn from it I'm sure. If not now then perhaps after the sale?[/QUOTE]Markit , it is a success and the airbnb and Agoda bookings and reviews confirm that. The reason is purely one thingMoney !!!We ( as in the wife and I ) have decided to stay in Australia for the foreseeable future and the profit made will pay for a neat rental in W Australia .The difficulty these days in Bali is the skyrocketing prices have made the ROI not feasible so better to take the money and move it elsewhere.Also bear in mind the Indonesian government has no tax incentives except to charge you 10% of any money made. No depreciation allowance, no negative gearing etc etc and as I still work in Australia the OZ government also wants its bit...The wife has property in other parts of Indonesia which we may retire to later.CheersKen
Markit
Thank you Ken for filling that in and I wish you both all the success in the world and hope you will continue to look in now and again with your advice and humor. Like a Bali dog with a bone I do have one (or 2) question(s) still to ask. You say: "[I]The difficulty these days in Bali is the skyrocketing prices have made the ROI not feasible so better to take the money and move it elsewhere.[/I]"ROI is the difference in price from when you initially bought/built and the price you get either from the sale of the entire project and/or from day to day earnings,yeah?Well, please correct me if I'm wrong, but if you are now selling at the higher price, then the ROI is only gonna affect the unlucky punter that buys now, isn't it? Why is that a "difficulty" for you since it can only really affect the availability of buyers in the present market?
gtrken
Thank you Ken for filling that in and I wish you both all the success in the world and hope you will continue to look in now and again with your advice and humor. Like a Bali dog with a bone I do have one (or 2) question(s) still to ask. You say: "[I]The difficulty these days in Bali is the skyrocketing prices have made the ROI not feasible so better to take the money and move it elsewhere.[/I]"ROI is the difference in price from when you initially bought/built and the price you get either from the sale of the entire project and/or from day to day earnings,yeah?Well, please correct me if I'm wrong, but if you are now selling at the higher price, then the ROI is only gonna affect the unlucky punter that buys now, isn't it? Why is that a "difficulty" for you since it can only really affect the availability of buyers in the present market?[/QUOTE]Maybe ROI is not exactly correct but put it this way.In W Australia you have a $500,000AUD property you would expect ( and usually get if the area is correct ) a return of approx. $500 gross per week .In Bali the same $500,000AUD would be unlikely to return the same money , especially in our scenario of not being hands on .In the rental market you have one tenant for a fixed term, in the hotel market it is extremely variable and even though our Kost is running around 60% occupancy already, it is by no means a steady income.Hence take the money and profit from the land prices going up and get a better property back in OZ than I could have afforded before plus I can control it myself.Hope that all makes sense.CheersKen[url=http://www.kennethakost.com]Kennetha Kost - Home[/url]
Markit
Long winded bollocks. CG is a part of ROI but ROI is not a part of CGYou also conveniently ignore my comment "and/or from day to day earnings" but I did not add this [I]as filler[/I], as most of your writings tend to be, or because I like the way it looked, but [U]it is the entire point of the piece[/U]. Difference in price between buy and sell is CG but CG plus profits (wildly simplified, but still) is ROI.
davita
I think some meat should be put on the bones of this debate...here is one definition:-[url=http://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp]FYI On ROI: A Guide To Calculating Return On Investment[/url]It can be seen that ROI clearly includes capital gain and income...ROI= Gains-Cost/Cost expressed as a %.
gtrken
Quick ( and I use THAT term loosely in Bali ) update is that we are here in Bali ATM in the final stages of negotiation with 1-2 potential buyers. We have managed to bypass god knows how many agents purporting to be buyers only to fold when the crunch time came and that wasSHOW ME THE MONEY !!Anyway as I said we are talking direct to 2 guys who certainly have the money ( they both own a couple of hotels/villas each ) and lets hope Santa brings me a nice fat Christmas present.No Markit, that is NOT what I meant you dirty minded person...HeheheCheersKen[url=http://www.kennethakost.com]Kennetha Kost - Home[/url]
gtrken
As a further update on this rather long winded saga we have taken a substantial deposit on the property last week .Jam Karat at its finest...But like a lot of things in Bali, it ain't certain until the balance is in the bank..CheersKen[url=http://www.kennethakost.com]Kennetha Kost - Home[/url]
gtrken
And to finally bring this saga to its long and drawn out conclusion.THEY SHOWED ME THE MONEY !!So we are back in Oz now minus the land title, IMB, Blue books etal but a pocket full of money ( sort of)Now to work out how to get the rest down without the banks raping me of too many fees.Any ideas apart from a lot of trips to bali to bring in < $10,000 AUD each time ??CheersKenNOT [url=http://www.kennethakost.com]Kennetha Kost - Home[/url]
DenpasarHouse
I've used these guys to transfer a fair chunk of money when building our house here in Bali. [url=http://www.kanggaru.net]:: Kanggaru.net ::[/url]For risk management I started with AUD$5000 checked to see if arrived in my account then proceeded to send the rest in AUD$10,000 lots. Each time waiting for the money to enter my account before sending the next $10,000. I had no problems and most times the transaction was completed on the same day. Every transaction costs $10 but every third transaction is free, so it's really AUD$6.67 per transaction if you average it out. You'll need to hurry though, as I think the business is getting squeezed out by government regulations. See their announcement here:[url=http://www.kanggaru.net/about.php?lang=eng].:: MONEY TRANSFER KANGGARU ::.[/url]From my research (admittedly from a couple of years ago) there was no cheaper way to transfer money between Australia to Indonesia without actually carrying the cash yourself. This should hold true for sending the money to Australia, but I haven't actually checked that out yet. Let us know how you go.
Fred2
Kangaroo Service, you can check there exchange rates on line
gtrken
Probably should have been more specific.The money is in AUD in Bali and needs to be sent in AUD to Australia .Have emailed Kanggaru ( thanks denpasarhouse) and am awaiting a reply.The rest only do Rp to dollar, not dollar to dollar..Sounds easy but atm the particular bank I have the money at in bali only allow maximum 200,000,000Rp or the equivalent for foreign exchange per day AND the fees are steep.CheersKen
Jokerstar
You are not limited to bringing back less than 10K a time you just have to declare anything above that.So once you can prove where the monies came from, not even sure if you have to prove it, then you can bring it all back.Im guessing you dont want to declare it as then its liable for tax.
gtrken
Jokerstar I would never, as an upstanding honest Aussie, do anything to defraud the ATO of their rightful dollars :)Actually I flew back to Bali , went to the bank, did a deal and got the whole sent lot down in 1 hit for the same price I would pay for one transaction of 200,000,000Rp.It seems that unless you point out the fine print on there website to them, they will take the more profitable option....CheersKen
Adam
Well done cobber.
