Property Invest in Bali Island

Property Investment in Bali
Why You Should Invest in Bali Property?
Whether you want to live in the tropics, plan to retire one day in Bali or are simply looking for a good return on investment, the fundamental reasons for choosing Bali are basically the same.
A wide range of attractions combined with good infrastructure and convenient airline connections have made this beautiful island extremely popular as a tourist destination and home of choice for many foreigners. Combine this with still reasonable property prices and you can clearly see why property investment on the island has been generating high regular returns with property values continuing to appreciate strongly over years, even during difficult times.
Annual Reader Surveys by major travel magazines continually confirm the perception of Bali as the most enchanting travel destination in the world. Because of the friendly people, the physical beauty of the island and its wide variety of attractions, Bali is seen by many experienced travelers as The Ultimate Island.
Buying or building a property in Bali which can be managed and rented out when we are not using it our self has become very attractive for many tourists, working expats, future retirees and keen investors.
Bali property is still much cheaper than many other places, and Bali does not have the long rainy season or security problems found in many countries. Bali’s strong tourism inflows mean that investing in a quality managed property in Bali delivers a high yield from having it rented out without any hassles or responsibilities. It is quite normal for well-managed villas and apartments to return double-digit returns net of all costs.
And investors can also expect a strong and steady appreciation in the capital value of their asset.
Owning your own piece of paradise means that the pleasure of ownership, having your own slice of heaven in the tropics to share with family and friends for years, can be enjoyed in addition to the financial rewards.
As anywhere in the world, location is the most important factor in Bali. Land prices in beachfront, town central locations and properties offering spectacular views will increase most, and properties on or near the beach or offering great views will be the easiest to rent out if we do not want to live in them throughout the year, as they are the most in demand with tourist visitors.
The most popular tourism destination areas in Bali are Jimbaran, Uluwatu, Nusa Dua, Kuta, Legian, Seminyak, Petitenget, Canggu, Pererenan, Seseh, Sanur, East Bali, Ubud and the Tabanan area. These various areas have different kinds of pleasing aspects such as beachfront ocean views, hilltop beach and ocean views and rice padi rural views.
Beach front view land and properties are available in Nusa Dua, Jimbaran, Canggu, Petitenget, Seseh, Menyenyepi Beach, and Pererenan area. Some of the land in Jimbaran and Uluwatu is cliff-top with truly spectacular ocean vistas. In these areas existing high quality villas with gardens, swimming pool etc which were built a few years ago start at around US$400K and can go up to US$2M and more.
Rice padi views are the norm in Ubud and some land at Canggu, Pererenan, Seseh, Ketewel and Biaung near Padang Galak.
Bali may be small in size, in fact it is possible to can drive around the entire coast in one (long) day. But its prominence as a destination is huge, and rightfully so.
Ask travelers what Bali means to them and you’ll get as many answers as there are flowers on a frangipani tree. Virescent rice terraces, pulse pounding surf, enchanting temple ceremonies, mesmerizing dance performances and ribbons of perfect beaches are just some of the images people cherish.
Small obviously doesn’t mean limited, as the manic whirl of Kuta segues into the luxury of Seminyak and the artistic swirl of Ubud is counterpoint to misty treks amid the volcanoes. Mellow beach towns like Amed, Lovina, and Pemuteran can be found right round the coast and just offshore is the laid-back idyll of Nusa Lembongan.
As you stumble upon exquisite little offerings left all over the island that materialize as if by magic, you’ll see that the tiny tapestry of colours and textures is a metaphor for Bali itself.
And those are just some of the more obvious qualities. Visiting Bali means that you are in the most visitor-friendly island of Indonesia.
There are pleasures of the body, world-renowned massages and hedonistic interludes in sybaritic spas, shopping that will put “large extra bag” at the top of your list, and food and drink ranging from freshest local cuisine bursting with the flavours of the markets to food from around the globe, often prepared by chefs and served in restaurants that are world class.
And from enjoying a cold Bintang while watching the sunset over the ocean to an epic night clubbing in Kuta, your social whirl is limited only by your own fortitude.
So, what are you waiting for? Let’s find your dream of owning Bali property here. Now Property Bali has available Bali properties to suit any budget, from managed apartment properties to luxury houses and villas to undeveloped land property where you can build your own villa or villas.
Buying real estate property in Bali can be an adventure, our mission is to make it comfortable for you.
Just mail e-mail or call and let us we show you our current properties and explain how investing in Bali property can be a truly enjoyable adventure in paradise.

Extra Bits

Communications have been improving every year, and frequent direct flights connect Bali with many places around the world. There are several International School on the island and a wide range of imported food and drinks is available. Full time cooks, maids, gardeners, drivers, etc are easily affordable which means you can live very comfortably in Bali at low cost. Medical services are provided by local hospitals and international SOS and the “Bali International Medical Centre” (BIMC) which both use overseas experts for tele-diagnosis. If we need to see Western doctors, both Singapore and Perth in Australia are only a short flight away. If we want to do business, we can register a PMA (Foreign Investment), company which will entitle us to a Resident Visa and Work Permit. Retirement Visas are available for anybody above 55 years of age.
Some property agents will offer we a lease with guaranteed income for the months you don’t occupy our villa ourself. They will also manage our property and pay all regular expenses and maintenance costs during the time of the lease agreement. When we decide one day it’s the right time, we can apply for a “Retirement Visa” and live permanently in Bali.
Rice padi views are the norm in Ubud and some land at Canggu, Pererenan, Seseh, Ketewel and Biaung near Padang Galak. In these areas land prices range from US$50 up to US$300 per square meter (11 square feet) depending on the location (in the middle of nowhere we might still find land for less than US$20). A plot not too far from the beach and the tourist areas in South Bali will cost today about US$70 to US$150 per square meter. If located right on the beach, with a spectacular view or is part of an up-market development, it can be US$300 and more per square meter.
The basic construction cost of good quality residential buildings is right now about US$ 500 to US$1,200 per square meter. This does not include access roads, site preparation and development, water and electricity supple, swimming pool, water pumps or filtration, waste water treatment, power generators, landscaping, architects and consultants fees, costs for the many licenses and permits required, etc.
property the property laws in Indonesia.

Legals

Until now, foreigners can not directly own freehold property in Bali, that is, have their name on the official land title. While there is a possibility that this situation will change in the next few years, that It has not yet been clearly defined by law which foreigners (permanent residents, temporary residents with working or retirement visa, certain categories of visitors, etc) will qualify. However, although foreigners probably will not be able to own “freehold” property (Hak Milik), several Government Regulations issued in 1996 allow foreigners to hold a “Hak Pakai” title (Right of Use) valid for 25 years with the possibility of another 25 years extension. In other words, The Minister says any foreigner who invest in and maintains a property in Indonesia is contributing to national development and therefore entitled to hold a Hak Pakai title, even if we are only an occasional visitor to Indonesia. However, as the validity of a “Hak Pakai” title is limited to a certain period and it is not possible to mortgage a ” Hak Pakai”, this is not comparable to freehold or ownership in perpetuity. Holding a Hak Pakai offers the foreign investor protection for a certain period, but this title seems not well suited for long-term investment purposes.
In most cases an Indonesian citizen will hold the interest in the property as the nominee and on behalf of a foreigner, and the land title will be issued in the Indonesian’s name. Whilst such arrangement are not strictly againts the law, it is understood they are contrary to current government policy and the spirit of the law. If an Indonesia acts as nominee for a foreign investor there are a number of contracts and other documents which must be prepared by and signed in front of a qualified notary. These include the Purchase or Rental Contract for the property transferring the rights from the previous owner to the nominee; a Loan Agreement for the purchase/rental price between the investor and the nominee; and an irrevocable and transferable Power of Attorney to sell, transfer or otherwise dispose of the property and to represent the nominee in any dispute regarding the property, given from the nominee to the investor. The nominee will also be asked to hand over all original land titles to the foreign investor.
Although most foreigners have found the above arrangement to work satisfactory without any problems (as long as all agreements have been properly executed in front of a qualified notary), some buyers prefer to have their property owned by a PMA Company directly controlled by the foreign investor. Major disadvantages of using a PMA Company are that property must be directly seed for the approved project, and that a PMA Company like any other corporate entity (Indonesian or foreign) can not hold a freehold title (Hak Milik). Whenever freehold land is transferred to a corporate entity the title is changed to HGB which has to renewed after 20 or 30 years.
If we don’t want to commit US$ 400,000 or more for a vacation villa or future retirement home but expect to receive an attractive return on our investment starting soon, the acquisition of a leasehold property will be the right solution for us.

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