Own a piece of paradise in Bali: Buying a holiday villa in Bali
Someone told me there are 2,000 villa construction projects currently going on in Bali. Who knows for sure how many there are, but in my area, Seminyak and the surrounding areas, there is certainly no shortage of existing villas, and new projects.
One company that offers high end villas is Bali Luxury Villas. ‘Live your dream!’ says the ad, ‘own Private Freehold Beachfront Estate.’ They are offering 3 bedroom luxury residences on a 400-1200 sq meter lot, starting at US$369,000. They are also offering luxury villas, with 9m pool, on-site management, ad & sales team & service, for US$249,000. They promise a return of 15%-25% a year.
As always location is the real key, and you’ll have to do your own homework on land prices in Bali, as there are huge differences, depending on area. Reading a local newspaper I picked up the 10 points, that are most important to choosing a holiday villa to buy. These are:
•1. Ideal location
•2. Complete building permits
•3. Solid deeds or licences
•4. Good size and quality
•5. Large private pool
•6. Full time maid (pembantu)
•7. Excellent management
•8. Great advertising & marketing
•9. Proper accounting
•10. Professional after service & marketing
According to one source most visitors to Bali want a villa that is a short walk to a nice beach. One thing that occured to me was that in the hot, dusty, humid atmosphere of Bali, your brand new dream villa, won’t stay that way for long. Things rot fast over here, and the elements constantly attack the structure. If you plan on renting out your villa, constant up keep and occassional renovation are necessary.
By Nick | Permalink
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Comments
Ask any of the 1000s who have.
Well I’ve never underestimated the stupidity of the general populace.
Odd, I would have thought you’d be an expert on that.
Give me a call when the leases start expiring on these condos. I can’t imagine them appreciating in value.
25 or 30 years from now I’ll be dead, Toney. Maybe you too though you sound pretty young. Appreciating in value isn’t the point for us interested in the “here and now” of living in Bali, Toney.
Thanks for the comments. As far as the Bali real estate market goes, I think its fair to say you have to look at all the variables, before deciding whether its a situtation that suits you.
I know a guy who has owned 3 apartments on Jl. Double Six for 14 years. H’es on a 20 year lease and will have to hand it all back for nothing, in 6 more years. I asked him how he felt about it, and he said it was fine, he knew that going in, and he’s already made money. Th next 6 years are basically free rent and a way to make more money.
I invest where I make money, where the asset appreciates, and most importantly, where I get to keep the asset. Good luck to the Indos taking these bozos to the cleaners.
Buying a house in Bali is not just about investing–I wouldn’t recommend that either. It’s about buying into a lifestyle. It can also be a hell of a lot of fun (OK, and some hassle), going thru the design and building stages, then finally having your own place. Consider spending big money only if you plan on spending some serious time in Bali. The for sale ads in Bali Advertizer and the like testify to those who’ve regretted dropping a few hundred grand on a place near Ubud. Or, put up a cheap little bungalow somewhere, stay when you can, and hope to get some small income out of homestaying it. Spend as little as you can easily afford to lose.
I don’t understand why someone would buy in Bali. Just stay in a nice hotel.