nonikkecil
Hi! I'm doing lots of research to make sure i'm doing the right thing. So your comments are highly appreciated.I'm looking at purchasing Villa, apartment, or home to do Airbnb in Bali. The areas Im looking at are Canggu, Seminyak, Legian, and Uluwatu...will be 5-10 min from the beach ( a must!). I'm aware of the whole thing about Hak milik, Hak Pakai, sewa and so on. I know that i need to get a hold of lawyer and notary to make sure everything is legalized properly and thoroughly.[LIST=1][*]How's the property value in Bali? I've seen many leasehold properties on sale which make me worry about investing in Bali. Why there are so many if there are lots of tourists there?[*]Any problems operating Airbnb in Bali? I used to do Airbnb in California but i had to shut it down due to laws.[*]Which one is a better buy...Villa, apartment, or a house? my budget is only 2-3 milyar and prices are pretty high in Seminyak...not sure if i can even afford there. And i don't want leasehold. I'm not an Indo citizen but my parents still are.[*]I've seen places that offers management to run the villa or apartment. Are those even worth the money?[*]Any problems with hiring locals? I won't be overseeing the workers all the time. I will probably have family members check them time to time.[*]Real estate agent recommendations please. I've seen Ray White Seminyak name all over internet. Do they do honest and diligent work? I'm not from around the area so everything is new to me.[/LIST]Thank you. I appreciate all your time
tel522
Property has fallen substantially ,hard to sell and generally poor quality ,tourists here are generally low end , chinese make up the highest %. followed by aus.
spicyayam
My feeling that it is not worth the trouble, especially if you are not living here.1. Possibly over saturation of the market, not just airbnb style properties, hotels, guesthouses etc.2. You need a rental licence to make it legal and pay tax on the income. Apparently it is not easy to get this in the areas you have listed.3. No idea really. You would have to do your own research regarding this.4. Possibly a good idea, especially if you are not here. 5. No problem hiring people, getting them to work to the standard you probably want is the difficult thing. It would be a nightmare I think trying to manage staff remotely. 6. I can't imagine one agent is better than the other. Most will tell you what you want to hear. It is extremely important to get due diligence done on the property. So many scams around.
Mark
,tourists here are generally low end , chinese make up the highest %. followed by aus.[/QUOTE]Actually Russians would be number two in central Bali now, after Chinese who tend to come to Ubud in large couches only for day trips. In fact, I would say that Russians are now the largest group of caucasians 'living' in the Ubud area. Every other voice you hear in a supermarket or restaurant these days seems to be speaking Russian.
harryopal
My impression is that the housing / villa market has a cargo cult mentality developed. In Papua New Guinea in remote areas people built airstrips on razorback mountain ranges hoping that then planes would land and start unloading goodies as they had seen happen at other strips. The notion here seems to be build more accomodation and the money will flow with the result that there is a very large number of vacant houses and villas.
Mark
To get somewhat back on the thread, the property market in Bali is quite varied and information is hard to verify. From my own observations, raw land has maintained its value in most places and over time has gone up nearly everywhere. For example, where we live in rural Central Bali, freehold land going for 50 juta per are 7 years ago is now 250 juta per are, based on actual transactions and not some seller's wishful thinking. Volumes of transactions, however, appear to be not as high as in past years and also there is a trend for owners to lease their land for 25 years instead of selling it outright, even if the purchaser is another Balinese. In terms of villas, the build quality is often fair to poor, especially where you don't see it - foundations, concrete, steel, mep etc. The prices of uninspiring, older villas on postage stamp sized land seem to have come down in some areas. New villas are still being built and sold, however, even offplan. Based on what I have observed, the 2-4M price point for a new three bedroom villa on a small plot of leased land is the sweet spot in the greater Ubud area. However, unless you are involved in the build or it's been done by a serious contractor (there are a few, but not many of these), then buyer beware.
tel522
My observations are in south bali only ,where prices have tumbled 40% plus , in fact nearby me they were trying to sell a property for a couple of years ,buy the land , free house ,it never sold and now is in the banks hands .
nonikkecil
Thank you all for posting! With the trade war with China, I have a feeling we are heading to a deeper recession. I think properties will be even harder to sell...perhaps it's more of buyer market. However I'm worry as well on my end. One thing about buying property in the lower price range...another thing is operating rental with possibility of less tourism in the future due to uncertainty in our economy.All the infos are great. Please if you have anything to add, I'll appreciate itIf possible...information about property around the beaches area is preferred on my end. I really am not looking at purchasing anywhere far from it.
nonikkecil
To get somewhat back on the thread, the property market in Bali is quite varied and information is hard to verify. From my own observations, raw land has maintained its value in most places and over time has gone up nearly everywhere. For example, where we live in rural Central Bali, freehold land going for 50 juta per are 7 years ago is now 250 juta per are, based on actual transactions and not some seller's wishful thinking. Volumes of transactions, however, appear to be not as high as in past years and also there is a trend for owners to lease their land for 25 years instead of selling it outright, even if the purchaser is another Balinese. In terms of villas, the build quality is often fair to poor, especially where you don't see it - foundations, concrete, steel, mep etc. The prices of uninspiring, older villas on postage stamp sized land seem to have come down in some areas. New villas are still being built and sold, however, even offplan. Based on what I have observed, the 2-4M price point for a new three bedroom villa on a small plot of leased land is the sweet spot in the greater Ubud area. However, unless you are involved in the build or it's been done by a serious contractor (there are a few, but not many of these), then buyer beware.[/QUOTE]Would you say newer buildings have constructed better? Or it doesn't matter because every developer cuts corners to make money
Mark
Would you say newer buildings have constructed better? Or it doesn't matter because every developer cuts corners to make money[/QUOTE]Hard to say. Most developers cut corners to make more money - it's really a question of how. I mean it's one thing to install cheap doors and windows, switches, water heaters, pumps etc (which can all be replaced) and quite another to under provision rebar or to pour concrete of an insufficient strength for the intended purpose. Best to learn which contractor built a house you are interested in and then check around for that person's reputation. Also, there are companies that can do building inspections and identify potential problems and defects, but obviously they can't easily check everything (eg rebar size, depth of foundation bore piles etc).
