Talking with Jim about property in Seminyak Bali
Ika and I spent a very nice Sunday swimming at the villa of a 2 Spanish ladies in Kerobokan. Another friend of ours Jim from California came along and afterwards we visited his place on Jl. Double Six. Jim moved to Bali 13 years ago and built some 2-storey apartments on land he got on a 20 year lease. Since that date Bali has got a lot more popular. Jim said back then Jl. Double Six was just a dirt track leading to the beach, there was 1 warung and only him living there.
He did a good job on his apartments and has a cute little set up, with his place, his daughters place, his wifes place and others for rent. Only problem is he will lose the lot in 7 more years.
I asked him how he felt about that and he said he fully understood the situation he was getting into. He told me an extension would probably very expensive and would take into account all the work and improvements he had done (which would work against him). I said why not negotiate with the owner. Tell him okay you can have the place back, but unless you give me $X I will knock the structures down. Jim said you cannot do that because the actual owner of the buildings is already the landowner. When you sign an agreement to lease land the land-owner benefits from any improvements you make and you cannot destroy those improvements. You can take a chandelier down, unscrew your antique carved doors, but not the fixed structures.
Food for thought.
By Nick | Permalink
Related Posts
- Bali real estate a sought after commodity
- Buying property in Bali
- Financing a mortgage in Bali
- Hot property in Bali
- Land & Visas in Seminyak Bali
Subscribe
|
Print
|
Share              |
Comments
G’Day Nick,
Bit rough that for Jim!. It’s a bit different for the likes of you and I Nick becuase we are both married to Indonesians. The point being, they buy the land and or house and goes in their name. I suppose the only thing we’d have to worry about is divorce - you lose the lot! (He, he…!).
i’m an ardent supporter of free market economies, but jonathon makes a good. the balinese wouldn’t have a chance of acquiring a home if foreign money was allowed to flood bali. on the other hand, the lack of foreign investment means the balinese will never substantially raise their incomes and will perpetuate their agrarian existence.
Yeah it is a great thing for the Balinese these short leases. Nice thing to be given back a piece of dirt with some sumptuous buildings now on them. Also because it makes investment less interesting for foreigners and therefore keeps down the price of real estate so local people can live there. When you see locals being driven out of places they grew up in like Bondi for example you have to say it is one of the better bits of Indonesian economic policy.