First Land Purchase in Bali

[Pdoddy]

Hi everyone

This is my first post on this forum and i hope to gain some insight into buying land in Bali.

My wife (Ann) and I are 48 & 50 years of age and live in Melbourne Australia

We are looking to invest in land in the village of Sidemen in the Karangasem regency, looking to build a Villa a couple of years later. Our Balinese friend is looking for suitable properties for us to inspect when we get over there in April, with the view of putting down a deposit. We are looking to buy for around 50 to $60,000 AUD

What do you think we can get for that in that area? Am i being realistic? Or should I just forget about it?

We would like freehold and would appreciate any advice or opinion you may have for us.

Thanks

Pdoddy

 

[davita]

pdoddy.....welcome to the forum.
I don't want to burst your dream bubble but, if neither of you are Indonesian citizens, I hope you are aware that foreigners are not permitted to own freehold land in Indonesia.
One method to alleviate this is to have an Indonesian, of trust, to be a nominee owner. The other is to lease for 25 years and have a right to extend the lease.
There are many posts on this subject.
Sorry ....no idea of value in that area...Market lives there and might chip in!

 

[Pdoddy]

Thanks davita

We have been reading up about Hak Milik and think this is the way to go. Getting started we have no idea who to trust or what size land is suitable for a villa? I guess that depends on the size. We would be looking at a medium size villa with a swimming pool, close to a main road with water and electricity as a starting point??

 

[ronb]

Land size of about 6 are would be OK for a villa, small pool and small garden, while land size of about 15are would allow for a big pool and big garden.

 

[Markit]

Welcome to the forum you have made the first important decision by joining us here.

Most of the information you will need is here and in past threads so use the search to find it as it would seem you have already been doing.

When you are here contact me and I will happily put you in touch with a local business man from Sideman that has helped others to find their dream property - including me and several others here on the forum.

 

[davita]

Hak Milik title is the equivelant to Freehold but can only be owned by an Indonesian National. If you don't have a trusty asssociate/family then you might find this route risky.

Here is a link that a property Co. posted on this forum some time ago that might help you.....Guide to Indonesian Law on Purchasing Property

 

[Pdoddy]

Thanks for the feed back devita, ronb & Markit

I have been trying to talk to Real estate people over there and all they have answered with is there own agenda. I think now i am getting somewhere.

ronb - Thanks for the heads up about size. My property at home is 750 Sq M. from what i can see that's 7.5 are. I do not know what my money will buy in Sidemen so i am guessing im looking at around 10 are.

Markit - I have seen quite a bit of your posts on this site and i am great full i came across it. I have been scrolling through the posts and will continue to do so for further info. Your kind offer of contacting you will be of great help. My wife and i arrive on April 17 and return to Melbourne on the 24th. My friend in Bali is from Sidemen and is looking for properties for us to inspect. But i guess his expertise is very limited in this area.

Devita - Thanks for the link. I have printed it off and will study it in the near future. Any further information from any of you will also be great. One thing i have not got an ides about is how i will pay for the property from Aus. I do not know the laws regarding investing in another country using money leaving Australia?

I'm looking forward to the challenge and hope to learn a lot from good people such as yourselves.

Paul

 

[Lovegrove]

Hi pdoddy - we are currently in the process of building a villa in the Sideman region - would also be happy to catch up and share our experiences so far, show you our plans etc., and share any tips we have gained (or not lol)

Cheers

 

[davita]

Quote " One thing i have not got an ides about is how i will pay for the property from Aus. I do not know the laws regarding investing in another country using money leaving Australia? Unquote"

There is no impediment to transfer money to Indonesia for the purchase of property. Your issue will be what visa you will use to stay here. Legally, unless you have a temporary stay visa (Kitas) you are not permitted to open a bank account, although I have heard that some people have achieved this with some Indonesian banks.

Good luck with your dream and challenge....it is achievable and many have done it. Research, knowledge and information are your best weapons and I suggest caution is your best defence.

 

[Pdoddy]

Hi All

Thanks for the heads up on the transfer of money devita. Look like i have a lot more to look into b4 i really get a handle on this.

Would love to catch up Lovegrove, sounds like you are having a positive experience so far. A lot of what i have read so far has been really negative until i found this site. any help would be great?

Paul

 

[Lovegrove]

It has it moments, believe me, you really need to team up with someone (pref a local), that speaks English, and isn't going to take their cut every time you open your wallet - hmmm that sounds ambitious, I know, but it can be done....
Everything takes time, so cue the patience skills that you are going to desperately need. We started our build on 22are - part 1 -160sqm house - commenced in October 2012 and we are still waiting - it's getting closer, currently laying wall/floors tiles, installing windows etc., but we still expect at least another month till we can move in & most of our workers live on-site. There has been "no" electrical tools used - except angle grinder to cut tiles, so it's a hell of a lot of hard, manual labour - but we are stoked with how it looks :icon_biggrin:
You have to factor in cost of alternate accom while you are waiting, we are currently staying in Candi Dasa in very, very basic accom, no hot water or a/c - but we manage, cheap & cheerful
Someone tell me why?? Why are we building a villa, we could just stay here hahahaha.......

Just ask if you want anymore info )

 

[Barekarma]

Hi Pdoddy (Paul)
I agree with the other Forum members, you have started in the right place. The tales of horror about buying land and building here in Bali are legion, but there are even more of us have just done that and survived the experience. I would be happy to pass on our experience in buying and building in Bali, so that your project is less daunting. For example, we converted our architectural drawings into 3-dimensional pictures for our building workers, and it made a big difference in getting our project built as we wanted it. If you need help or advice in that area, we would be happy to help. It helped us sleep at night during the building process!

Good luck with your venture.
Barekarma

 

[harryrose61]

Hi pdoddy,
Im in the same boat too... new to all this a little more advanced, if thats a word I can use? Not as much money for house and land as you but a sponsor ready to go. I would value your comments and experiences you have. Scary isnt it? But exciting.
Thanks
harryrose61

 

[Lovegrove]

Welcome harryrose61!
As far as using your money to invest here, we arranged all this through our sponsor - basically transferred to his account & the land was purchased freehold using his name - obviously there is an immense amount of trust involved - so make sure you know who you are dealing with!! We negotiated a sq metre price with our contractor, and we supply all the materials, it is often better to have a local go with you to purchase, as they can negotiate on your behalf, instead of the price being inflated due to you being a "bule" lol
Scary & exciting sums it up - and some days are scarier than others hehehe
Keep the questions coming & we will endeavour to help where we can :eagerness:

 

[Pdoddy]

Hi harryrose61

Only said i was looking to invest around $60,000 in some land. I do not how much land that will get me in Sidemen.

I have set up a gmail address if any of you wish to contact me in private pdoddybalinvest(at)gmail.com I hope i have no broken any rules by doing this.

Any information would be great

Regards

Paul

 

[Markit]

Nothing wrong with a private email but can I suggest you keep it here on the forum that way others can learn from what you are doing and some of us that have been there, and done that can help you over some of the stumbling blocks.

For instance: I don't hold much with the "taking a local to help you barter" because in my experience we barter much harder than the locals do, many of whom don't care - if it's your money, or don't barter because it's is sometimes seen by their own countrymen as "cheap" - and the new middle classes really, really don't want to be seen as "cheap". So do your own bartering and don't be afraid to walk away if it's not a good price - there's lots of alternative places to buy building stuff.

By square meter price Lovegrove means that say you have a 200 sq mtr. palace planned then you can expect to be paying 3.5 to 5.5 juta (million) per square meter of completed property. Anything you supply yourself should be deducted from the final price - say you have supplied the tiles for 20 juta - that should be deducted from whatever stage payment you are making - of course this should be discussed with your builder/contractor before you start.

Good luck and good nerves.
Markit

 

[Pdoddy]

Hi Markit

Will be using this forum as much as possible as i am learning all the time.

I'm not real good on what Juta is in Aus dollars so if you you could would you give me an idea (Approx) on the cost of land in the sidemen area as i think a reasonable size property would be around the 10 are in size from what i am gathering so far.

I realistically would like to purchase the land and build further into the future.

Thanks

pdoddy

 

[Dunaden]

Thats an awesome link Davita-greatly appreciated...and a little bit of a brain strain...PMA looks the way for me

 

[mat]

Hi Markit

Will be using this forum as much as possible as i am learning all the time.

I'm not real good on what Juta is in Aus dollars so if you you could would you give me an idea (Approx) on the cost of land in the sidemen area as i think a reasonable size property would be around the 10 are in size from what i am gathering so far.

I realistically would like to purchase the land and build further into the future.

Thanks

pdoddy

1 Juta [1000000 IDR] is $101 Aus.

 

[Lovegrove]

Hate to rain on your parade Markit, but that's crap about the square metre price - for starters, that is no where near the price we have negotiated per square metre with our contractor, and it has nothing to do with a "completed" price - as stated, there is a contract price per square metre, "we" supply ALL materials, not the contractor! It has nothing to do with deducting supplies from the final price, we pay by the metre, job done!
Fine, you think you can barter harder than a local you have on side, I would like to see your technique, ever hear the expression, "bule polit", if you haven't, check it out, seems to be terminology I hear locally often, about certain expats, & if the said don't get charged extra, for the privilege of this endearing name, well we all should pack up now!
For sure, you know, we are investing money in quality products here, because we are not into having to replace it in 6 months time, bamboo splitting for instance, not our scene, but I welcome you Markit, any time to come visit, check out "our" bartering skills.....

Cheers