Bali Villa Sales

Villas of Bali ™ is the trusted real estate company that offers the most beautiful villas for sale on Bali. Visit our experienced and helpful staff in our office in Seminyak, or search the extensive villa listing online at www.balivillasales.com, providing the most exclusive properties for sale. Villas of Bali ™ stands for quality, integrity and trust. We help you save time and money, while providing you peace of mind of your property related needs. Send us an email to info@villasofbali.com, or call us at +62 878 6249 3526.

  1. Welcome Guest to the new look Balipod. If you are an existing member, just sign up with your usual username/password. Any problems you can post them here
    Dismiss Notice

High dollar makes Bali villas an attractive investment for Australians

Discussion in 'Bali News - Indonesia News' started by balinews, Aug 21, 2017.

Tags:
  1. balinews

    balinews Member

    Joined:
    Feb 14, 2010
    Messages:
    926
    Likes Received:
    2
    If you have to ask the price you probably can’t afford one, but there is a small percentage of the more than one million Australians holidaying in Bali annually who end up investing in the island.

    For a song — compared to Australian real estate prices — you can pick up a luxury beachfront Bali villa replete with swimming pools and cheap labour via a leasehold or a long-term rental contract. Think rock-star lifestyle with 24-hour butlers, chefs, chauffeurs and gardeners.

    “If 10 people come through our door looking for property, four of them would be Australian,” says Bali-based agent Matthew Georgeson, director of Elite Havens/Knight Frank.

    “You can buy very well,” Georgeson says.

    About $1.5 million will buy a 400sq m-500sq m villa on about 1000sq m of land in Batubelig (next to trendy Seminyak) as well as on the fringes of other strategic areas, but under Indonesian law, foreigners cannot own property outright, instead they rent long term or buy in partnership with a local.

    Former Sydneysider Milanie Simic, based near Canggu since December, says there are many pros and cons to living in Bali.

    Among the pros are the cheap costs of some medical services as well as beauty and wellness treatments, staff and tradesmen.

    “With establishing and running a business, the cost of manufacturing, materials and staff are much cheaper than in Australia. And the day-to-day stress levels are also predominantly low,” Simic says.

    http://www.theaustralian.com.au/lif...i/news-story/220d8513fd9a9861f0a29498fad6d55c
     
  2. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
    Surely ausys would be better waiting until prices reached the bottom , prices in south bali are dropping like a stone , but of course the property agent would be positive in a falling market, wouldn't he ?
     
  3. spicyayam

    spicyayam Well-Known Member

    Joined:
    Jan 12, 2009
    Messages:
    2,834
    Likes Received:
    40
  4. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
    Sadly, the article in The Australian smacks more of being an advertorial parading as news presented by Bali-based realtors than anything resembling a factual news report on the possible pitfalls of foreign nationals trying to buy property in Bali.
     
    matsaleh and DenpasarHouse like this.
  5. DenpasarHouse

    DenpasarHouse Active Member

    Joined:
    Aug 13, 2013
    Messages:
    527
    Likes Received:
    26
    This is the exact opposite of my experience in Bali.
     
    spicyayam likes this.
  6. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
  7. DenpasarHouse

    DenpasarHouse Active Member

    Joined:
    Aug 13, 2013
    Messages:
    527
    Likes Received:
    26
    This guy gets it.
     
  8. davita

    davita Well-Known Member

    Joined:
    Mar 13, 2012
    Messages:
    4,111
    Likes Received:
    89
    I agree with other member's comments and disagree with that ridiculous report in the 'Australian'.... and would add I'm never going to subscribe to any Australian newspaper to read this kind of garbage.
    However the Bali Discovery says this..."Nominee arrangements for foreigners trying to own land in Bali aren't legal and are increasing coming to grief before the Courts, almost invariably at the cost of the foreign party"
    I haven't heard of any court cases to support this comment and would appreciate hearing if anyone else has.
     
  9. Nydave

    Nydave Member

    Joined:
    Jun 4, 2015
    Messages:
    357
    Likes Received:
    14
    I find it extremely difficult to understand how or why any supposedly intelligent foreigner would allow themselves to enter into such an agreement with a local,and risking it all,Although Davita makes a good point its very easy to see how the laws can be changed very easily,simply by demanding to know how a local can afford such a valuable property,Bali has many examples of foreigners being being dobbed into immigration by so called local partners,especially foreigners who built businesses here,when the local realizes that they can become the outright owner by reporting the foreigner to the authorities,

    Being screwed out of a business is bad enough but to lose your home is is quite something else,

    As for villas being good value at the prices quoted in the article ,im afraid the only good value lies with the developer,i have spent a lifetime in the construction business on two continents and given the standard of construction methods in Bali and indeed all over RI,if you seriously think you are getting value for money then im afraid you are greatly mistaken ,
     
  10. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
    As for villas being good value at the prices quoted in the article ,im afraid the only good value lies with the developer,i have spent a lifetime in the construction business on two continents and given the standard of construction methods in Bali and indeed all over RI,if you seriously think you are getting value for money then im afraid you are greatly mistaken ,

    here here !
     
  11. Mark

    Mark Active Member

    Joined:
    Apr 19, 2004
    Messages:
    451
    Likes Received:
    34
    Though admittedly few and far between, I have seen some examples of excellent quality villa construction in Bali, so everything is not crap. But most of it is.
     
  12. davita

    davita Well-Known Member

    Joined:
    Mar 13, 2012
    Messages:
    4,111
    Likes Received:
    89
    This is a simple explanation of buying property in Indonesia....https://www.justlanded.com/english/Indonesia/Indonesia-Guide/Property/The-buying-process

    From the above this is what is known as the so-called 'nominee' title.....

    Through an Indonesian representative - It is common for an Indonesian representative to serve as an intermediary and acquire land for the purchaser. Ownership of the land therefore passes from the previous owner to your representative. For the buyer’s safety, three agreements must be met with the Indonesian representative. They are as follows:
    • Loan Agreement – this states that the foreign buyer lent the purchase price to the Indonesian representative.
    • Irrevocable Power of Attorney – this gives the foreign buyer full authority to sell, lease, mortgage, etc. the land.
    • Permanent Right of Use Agreement – this gives the foreign buyer full rights to the use and occupancy of the land.
    There is no doubt that the 'nominee' owns the hak milik title...the foreigner's name doesn't even appear on the title deeds (Sertipikat Tanda Bukti Hak). It IS a requirement that the nominee declares the property as an asset and he could be questioned if he receives taxable income from this asset...if he doesn't then no illegal act has been committed.
    The three agreements are just that...notarised agreements between two people..(Akta Pernyataan). If there is a dispute I doubt those agreements would offer much consolation to the foreigner and the property would still belong to the WNI 'nominee'....it really needs trust.

    There have been challenges....a recent being an Indonesian actor who fraudulently, using a corrupt notary, transferred the 'nominee' to himself, and sold half the land. The foreign owner civilly sued and the title was re-transferred back to the original 'nominee'. Not sure if the foreigner got any money but, in principle, he won.
    Now the actor is waiting for a criminal trial judge to decide if he is guilty of fraud and maybe go to jail.

    As nydave has pointed sometimes a politician wants to make a name and jumps on this bandwagon...the last bigmouth was adamant but, to my knowledge, nothing has ever come about it unless they explicitly change the constitutional law.....and that will have to be done by parliament.

    Changing the law to prevent speculators buying foreign property is not just in Indonesia. Switzerland did it and foreigners could only sell their ski-chalets to Swiss...prices fell.
    Property in my home town, Vancouver, has risen dramatically over the past few years, fuelled by Chinese purchasers. Now the Chinese Gov't has curtailed sending their currency out of the country and denied to mortgage foreign property. Hopefully, this will draw down the prices and I can return...
     
  13. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
    Re Indonesian build quality , a locally produced car has an average guarantee of 3 years , a newly constructed hotel 3 months , a house 2 weeks !, just enough time for the contractors to run away to another island . enough said ?.
     
  14. Mark

    Mark Active Member

    Joined:
    Apr 19, 2004
    Messages:
    451
    Likes Received:
    34
    Like I said before, most builds are crap, but not all. For example, there is a decades old East Java building company, active for many years in Bali, that offers the following warranty:
    • 3 years of coverage on finishings and workmanship
    • 8 years of coverage on the building envelope
    • 15 years of coverage on the building structure
    I've seen their work under construction and it is excellent, though this company is not ideal for those looking to build on the cheap at an unrealistically low price.

    So making cynical, negative generalizations may feed a jaundiced, know-it-all expat stereotype of Indonesia, but they are not representative of the true picture. If you want quality in Indonesia you can find it, but like everywhere else in the world you must be prepared to pay for it.
     
  15. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
    interesting , where in east java is this company of builders with almost European building guarantees ?

    The guarantees quoted in my post are typical from contractors in bali , as im sure your aware .

    So if the majority of purchasers of property here, face the miserable property guarantees I previously mentioned , it is a generalization but typically true .
     
    #15 tel522, Aug 23, 2017
    Last edited: Aug 23, 2017
  16. spicyayam

    spicyayam Well-Known Member

    Joined:
    Jan 12, 2009
    Messages:
    2,834
    Likes Received:
    40
    Well I think construction is not bad considering the price you pay for it. My sister in Australia is doing a renovation and I got quite a shock for what they are going to pay for it. It would be tempting to send over a team of builders from Bali, but of course completely different standards and style of building.
     
  17. Mark

    Mark Active Member

    Joined:
    Apr 19, 2004
    Messages:
    451
    Likes Received:
    34
     
  18. tel522

    tel522 Active Member

    Joined:
    Oct 30, 2015
    Messages:
    279
    Likes Received:
    26
    Good information , I will do some further research looking for such good guarantees , Is there an association of builders whom work with similar standards ? which are enforceable under the law .

    Unfortunately most domestic builders and developers I know , work on the previously mentioned poor standards .

    And most of the locals I know seem to accept it as normal , leaking roofs , which need replacing after 10 years , rising damp , no damp proof course , untreated wood , unsafe electrics , etc etc .

    Scary !

    Obviously the buyer has to be aware .
     
Loading...

Share This Page