People try all kinds of ways to make money over here. I’m talking about the foreigners of course, we all know how the locals make money.
My lease on the 2 bedroom place was finished this February so I renewed for another year, price 27m rp. Prices are going up around here, but I negotiated to keep it down. The house opposite mine is a mirror image, just that everything is backwards. A couple of months ago an older American guy was outside and chatted to Ika, he had just rented it from some Indonesians, who had rented it from the owner. He asked Ika about our lease, and she told him, 25m rp. “HOW MUCH?” he said. Ika told him and he asked 2 more times. The people who rented it to him charged 50m rp! Ika told me he has tarted the place up, redesigned the garden, put up some mosquito nets, decorations, painted some things etc. and now tries to rent out the place himself.
If he can get someone to take the place for a month, who is looking for a small house with 2 bedrooms, porch, kitchen, bathroom, garden, hot water, AC, parking, and close to the party scene to hand over $30 a day, he’ll make $900. That’s $5,400 if he can fill it for half the year. Who knows, there might be some takers. The place would be great for a couple of friends, 2 guys or 2 girls who like the beach and party scene, plus more privacy. If I sub let my place I could probably do okay too. Wouldn’t hard to find takers, and my margin would be much better than his.
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Carlos,
Good for you for making out.
I feel Indonesia is a bit of a legal jungle, ‘the best judges money can buy’, plus all kinds of local laws. To be be honest its a zoo and I’m sure people get taken for a ride out here on occasion.
I think it important to add that,
yu are upfronting a year or more in rent.
Also, when you make the place comfortable to western standards,
this costs money and not as cheap as we imagine.
I did the same,
leased a place for 5 years,
upgraded it to western standards,
and I am not talking about JUST a paint job,
and I rent it out while I am away.
I do get the occasional European who wants the best quality at the cheapest rate,
which at the end does not cover what I invested into it, the staff etc.
So don’t think it’s just a quick buck.
It also takes a lot of patience when you re-do a home.
Hi,
We are looking to moving to bali and are keen on finding a 3 bedroom place for around 6 months and not too expensive. maybe around 15m rupiah. is it better to find a place via word of mouth or should we look at dealing with real estate agents?
Sub letting or sub leasing is illegal in California. We have many immigrants who get unwittingly into that game only to get sued and busted by the owners or tennents for a lot more than they netted in the transaction.
As for realestate here…. I bought my condo in Feb 2003 for $108,000 USD and today it is worth nearly 300,000! a nearly 200,000 increase in 2 years. My sister bought her house in June 2002 for 250,000 and today (after extensive remodeling) it’s worth about 650,000. We are making more money on our equity than we are from our yearly wages! I feel sorry for that have-nots but I can’t complain about the return on my investment.