buy investment property in bali

mazen

im australian citizen wanting to buy investment property, like a villa in bali. i only visited there twice, so not sure where best to buy and what price to expect for a 3 bedroom vila close to beach. what is the way to go about it? any help is appreciated

tel522

mazen wrote im australian citizen wanting to buy investment property, like a villa in bali. i only visited there twice, so not sure where best to buy and what price to expect for a 3 bedroom vila close to beach. what is the way to go about it? any help is appreciated

It is illegal for a foreigner to buy a property here , only lease , prices are dropping anyway ,so hardly an investment .

harryopal

You might find it easy to have people reassure you that you can buy and they can arrange documents to that end but it seems there are many people who have been scammed this way. Just type "property" in the search bar and you will find a lot of information.

Markit

Opinions differ along "party" lines - those that have a leasehold or are renting think freehold is an absolute disaster (null personal experience - but heard lots of stories) and then those that have bought freehold and lived here without problem for many years and would never consider investing and building a house only to have it revert to the land owner after the lease is done. You pays your money and takes your chances as in all things worth doing...

gtrken

Can't see how it can be much of an investment considering the purchase price vs the return via rent less management fees especially in these covid times. There are a LOT of expensive villas for rent atm. To give an example we are looking at cheap Kost's with the purchase price being around $150000AUD for a 10 room Kos on 1-2are of land with a return of effectively $600- 800 AUD a month less whatever maintenance and management fees required. Wont even pay the repayments on the loan... And before I get shot down, it will be freehold and yes, my wife is indonesian. Cheers Ken

Markit

JackStraw wrote I think there are far better investments than owning a villa in Bali

Unless your target was to live rent free, meet lots of friendly foreigners and possibly enjoy a modest income and grand standard of living from "your house" that would still be "your house" as long as you wanted or lived.

JackStraw

Markit wrote Unless your target was to live rent free, meet lots of friendly foreigners and possibly enjoy a modest income and grand standard of living from "your house" that would still be "your house" as long as you wanted or lived.

Well yeah, I'm talking about financial investment only in this case. If we are talking about a spiritual investment, emotional investment or whatever the fuck you want to call it, then leasing a villa long term in Bali is will give you a pretty darn good ROI. From purely the financial standpoint though, I would put that money to better use if I'm only looking for profit.

Fred2

Thats the trouble with tourist market, My friend has 1.5 are two bedroom house, about 4k's to the east. brought the land in 2005 and build the house the next year, total price Rp1,000,000,000($10,000 Aud) Bali you really need to look around for the right price. Yeh the first thing you do when you buy in Indonesia is remove the roof and put the tiles on with the correct overlay.

Markit

Why are you all so goddamned sure of everything you say? This is a picture of the roof garden of my house after 12 years, multiple earthquakes, one volcano and numberless rainy seasons - number of leaks in downstairs living room? None, not one. Know why? Cause I built it using California know-how and lots and lots of rebar and the best waterproofing (Sika) money can buy.

JackStraw

gtrken wrote Can't see how it can be much of an investment considering the purchase price vs the return via rent less management fees especially in these covid times. There are a LOT of expensive villas for rent atm. To give an example we are looking at cheap Kost's with the purchase price being around $150000AUD for a 10 room Kos on 1-2are of land with a return of effectively $600- 800 AUD a month less whatever maintenance and management fees required. Wont even pay the repayments on the loan... And before I get shot down, it will be freehold and yes, my wife is indonesian. Cheers Ken

Thank you! Finally someone said it. Any time I hear of someone owning a villa or even a multi-room kos kosan as an investment, I run the numbers in my head and struggle to see how it ever works in the "investors" favor. Even if you manage to book your villa every single day throughout the year (which is impossible but let's just say it for the sake of argument), it stil would take a long time and lot of headaches to break even on that investment. I think there are far better investments than owning a villa in Bali

Markit

So basically it's "stay far far away from any flat roof whatsoever" unless you know how it was built or built it yourself? Problem is that same statement is equally true for any house built here or anywhere where the building regs either don't exist or are fulsomely ignored. That also might be why you build yourself...? Unless you only plan to sell for an 'investment". So, if I can paraphrase you: "stay far far away from any house you haven't built yourself or built by someone only after a profit".

JackStraw

Markit wrote So basically it's "stay far far away from any flat roof whatsoever" unless you know how it was built or built it yourself? Problem is that same statement is equally true for any house built here or anywhere where the building regs either don't exist or are fulsomely ignored. That also might be why you build yourself...? Unless you only plan to sell for an 'investment". So, if I can paraphrase you: "stay far far away from any house you haven't built yourself or built by someone only after a profit".

Amen.

Fred2

gtrken wrote Can't see how it can be much of an investment considering the purchase price vs the return via rent less management fees especially in these covid times. There are a LOT of expensive villas for rent atm. To give an example we are looking at cheap Kost's with the purchase price being around $150000AUD for a 10 room Kos on 1-2are of land with a return of effectively $600- 800 AUD a month less whatever maintenance and management fees required. Wont even pay the repayments on the loan... And before I get shot down, it will be freehold and yes, my wife is indonesian. Cheers Ken

But if you add the land valve, we picked up a house $35,000 Aud it is between 2 gangs and plan to split the house in 2 and add one more floor. the land value is nearly double in 5 years (its in the city). 2 months ago we picked up 5.5 are for 122,000 Aud has water, power and road. Not sure what to do with the land(Kost or houses). We do not have tourist here so local market, vendor finance, 2-5 years no interest,. You built your last Kost for backpackers or long term tourist???

JackStraw

Let me share another story. Perhaps this will influence your decision. My friend rents a house in Jimbaran. PRIME lokasi up near the Raffles Resort. Not ocean view but on a beautiful, quiet street, 5 minutes to the beach, tons of nice restaurants around, and quick access to the nearby bypass if needed. It's on a 2 are plot. 4 years ago, the Indonesian owners bought the land for about 1.6 milyar and then built a cheap, cookie-cutter two-floor villa on it. To the naked eye, it looks like a luxury villa but when you look closely, you'll see they tried to build something fast for a quick real estate flip. Well, they put this house on the market about 3 years ago for the price of 3.5 milyar. No takers. A year went by, they lowered it to 3 milyar. No takers yet again. Then this year before Covid hit, they had it listed for 2.5 milyar. No bites at all. So, they were forced to start renting it in an attempt to stop the financial bleeding they've had to deal with. Now, since the house was poorly built, everything is falling apart and they are using the rental money to fix water leaks, rain leaks, cracked tiles, pool maintenance, wall maintenance. They'll be lucky to break even on this property when it's all said and done unless some guy with a bottomless bank account comes along. Remember, this is in one of the best locations in south bali. If a house on prime land can't sell here, then I don't have high hopes for the housing market elsewhere.

gtrken

Markit wrote Why are you all so goddamned sure of everything you say? This is a picture of the roof garden of my house after 12 years, multiple earthquakes, one volcano and numberless rainy seasons - number of leaks in downstairs living room? None, not one. Know why? Cause I built it using California know-how and lots and lots of rebar and the best waterproofing (Sika) money can buy.

Yep , I am a bit ( but only a bit) envious :) Looks pretty good except for the fact it is in the corner of the world ( as my wife likes to say). 12 years , thought someone might have stabbed you by now. Cheers only stirring Ken and still not as jaded as Markit...

JackStraw

Fred2 wrote Thats the trouble with tourist market, My friend has 1.5 are two bedroom house, about 4k's to the east. brought the land in 2005 and build the house the next year, total price Rp1,000,000,000($10,000 Aud) Bali you really need to look around for the right price. Yeh the first thing you do when you buy in Indonesia is remove the roof and put the tiles on with the correct overlay.

Absolutely right. Also, I may add, stay far far away from any flat roof whatsoever. Even if there is a partial flat room anywhere in your house, that's a recipe for disaster. I don't care if you have the best waterproofing guy in Indonesia. Earthquakes happen, cracks happen and cracks mean leaks. I've rented several houses in Bali over the last several years and ALL of them had water damage at some point. What did all these houses have in common? Flat areas of the roof where water could pool, sit and eventually leak down below into the walls of the house. Traditional Balinese architecture. got it right. Not sure why we moved away from that. I guess because we are all retarded. Tall, steep roofs that cover the entire house and overhang by a meter or so is the best way to go. You don't even need the most expensive tiles if you have a roof like that. Not only does it help direct the water away from your house but the height of the roof traps the heat up top and gives you a nice, cool room. But if you want to create a modern art piece house that looks like a spaceship with flat roofs and weird angles, please be my guest.

JackStraw

Markit wrote Why are you all so goddamned sure of everything you say? This is a picture of the roof garden of my house after 12 years, multiple earthquakes, one volcano and numberless rainy seasons - number of leaks in downstairs living room? None, not one. Know why? Cause I built it using California know-how and lots and lots of rebar and the best waterproofing (Sika) money can buy.

I'm just speaking from my personal experience from renting several properties and having water leaks from poorly made flat roofs. I've also consulted several contractors and architects on the matter and they have all said the same thing. That's why I am so goddamned sure of what I say. I'm happy though that's not the case for you. You are definitely in the minority of people who built a house the proper way. Everyone stand up and give Markit a round of applause. Unfortunately, not every house in Bali has California know-how or the best waterproofing money can buy.

gtrken

Fred2 wrote But if you add the land valve, we picked up a house $35,000 Aud it is between 2 gangs and plan to split the house in 2 and add one more floor. the land value is nearly double in 5 years (its in the city). 2 months ago we picked up 5.5 are for 122,000 Aud has water, power and road. Not sure what to do with the land(Kost or houses). We do not have tourist here so local market, vendor finance, 2-5 years no interest,. You built your last Kost for backpackers or long term tourist???

Fred We sold our last Kost ( actually it was a 2 star hotel but don't tell anyone ) just off Bukit Hijau in May 2015 and got a very good return on the money due to buying the land for 55Juta per are and sold when the land was going for around 350-400 Juta per are. We are looking at land now in a similar area ( actually closer to the University ) and the prices being offered are 250-300Juta per are. I reckon atm the land price bubble has popped so trying to maximize the advantage. Like anything though, life will roll on and stupid bule with stars in their eyes when they return to island will start pushing the price back up ... Cheers Still jaded but not as bad as Markit. Ken :)

Markit

I have stabs of envy occasionally when I see newbies coming to Bali with a sack full of money and an empty head - it's all an adventure and we're only on the ride the once. And even I'm not as jaded as Markit :cool:

gtrken

mazen wrote im australian citizen wanting to buy investment property, like a villa in bali. i only visited there twice, so not sure where best to buy and what price to expect for a 3 bedroom vila close to beach. what is the way to go about it? any help is appreciated

So Mazen comes on here, asks a question, never replies and never seen again? Wonder why we bother... Cheers now as jaded as Markit Ken