INVESTMENT IN BALI
Indonesia is experiencing a new boom after Covid.
Therefore, direct investment in the Indonesian economy is growing rapidly.
In 2022, compared to the previous year, they increased by 63.56%
POTENTIAL
1 Bali is a young and developing resort, occupying high places in the rankings of world resorts.
2 Cthe season lasts 365 days a year
3 High occupancy. On average 70-85% in tourist locations
4 Each year, the growth in the cost of rent increases by 15-20%
RATING
Forbes magazine ranked Bali as the 4th best place to live and invest in the world.
Land in Bali is becoming more expensive on average by 20-30% per year.
INVESTMENT IN REAL ESTATE
One of the most liquid investments in Indonesia is the construction of tourism infrastructure in Bali. Tourists prefer to stay not in hotels, but in private villas, townhouses and apartments.
$3,700 per month
12 - 16% per year
HIGH LIQUIDITY
Building or buying a villa is an excellent investment. The owner of the villa can not only sell the finished villa for a higher price, but also rent it out by the day or for a long time. Monthly earnings from one villa can average
$3,700.
In the early stages of investment, housing is cheaper, so many villas are sold out at the design stage.
PASSIVE INCOME
Buyers of finished villas have passive income. Maintenance, leasing and taxes are handled by the management company, and the owner of the villa does not need to do anything, receiving an income of 12 to 16% per annum, being anywhere in the world.
The management company receives for its services 37% of the rental income, including operating costs.
TIME TO INVEST
1. Demand for rental housing in the form of detached villas, apartments or townhouses exceeds supply. There are a few large developers on the island, and their projects are sold out in a matter of days at the sketch stage;
2. Limited supply of lots. From April 2023, the conversion of green areas to development prohibited by law, and the amount of land became very limited and expensive;
3. these are either local houses for rent, or projects from visiting expats who have not been involved in real estate before and have no experience in construction.
WHAT LOCATIONS HAVE THE HIGHEST RETURN ON INVESTMENT?
There are many areas in Bali that can provide exceptional returns on investment. Here are some of the most popular areas:
• The central part of the island (Ubud) - people come here mainly for spiritual and creative practices, an authentic Balinese atmosphere;
• West coast (Pererenan, Canggu, Berawa, Nyanyi, Seminyak, Uluwatu) - surfing beach clubs and restaurants, parties, beach bars;
• East coast (Kubu, Amed, Tulamben) - diving;
• Surrounding islands (Penida, Gili, Lombok) - beautiful beaches, stunning views, privacy;
Yoga, meditation and creativity
Diving
The central part of Bali is an attractive place for spiritual practices and creativity
The northeast coast is an attractive place for tourists as a place full of dive sites.
Surfing
The west coast is the most touristy. An attractive place for surfing, there are many beach clubs, bars, hangouts and restaurants.
Beaches
The east coast and the island of Penida are an attractive destination for tourists. Here are the most beautiful beaches and stunning views.
WHAT IS THE DIFFERENCE BETWEEN OWNERSHIP AND LAND LEASE
The two main options for owning land in Bali for the purpose of building villas are ownership and leasehold.
Ownership means that you own the land in perpetuity. This option is only available to residents of Indonesia or legal entities, so is not a common option.
A lease right is similar to a property right, but you only own the rights to the land for an agreed period of time. The international buyer will have his name on the lease and the legal right to use the land.
As a rule, land is initially leased for 25 years with the option to extend the lease for another 30 years. The contract is controlled by a notary.
HOW MUCH LAND COSTS IN BALI
The price is usually calculated per hundred square meters per year.
What affects the value of land:
• Ownership vs. Leasehold: Renting land in Bali is about three times cheaper while still providing the highest return on building investment.
• Location: Popular locations and seafront properties tend to have the highest prices, while more rural and quieter areas offer the cheapest land deals.
• Nearby Attractions: The presence of local amenities and attractions, popular shops, restaurants and beach clubs can increase the cost of purchasing land.
• Property size: The larger the plot, the more expensive it will cost.
