2021 Is YOUR Year
This is YOUR Year
Ok, well we’ve finally gotten 2020 put to bed and we are now onto bigger, brighter and better events and circumstances for all of us in 2021. Would anyone like to recap the key events of 2020 so that we can get a better understanding of the global differences in how each country went about trying to manage the effects of the virus? Just joking, I don’t either. For that kind of news, pick your poison….mainstream, alternative, social media, your kids, tea leaves, runes, the stars and planets. Each of them has their own theories and while there are many parts of each of these sources that report accurate details, facts and stories, I do not believe that any one source has the complete story, and if they do, they are not sharing it with us.
So let’s stick with what we know……The Bali real estate market.
As of this writing, there are more than a couple of unresolved factors which will greatly influence our market this year:
- A vaccination program for Asia-Pacific: how will a readily accessible program influence global travel?
- The Indonesian government: How will the rollout of the vaxx(es) impact day to day life here in Bali? When can shops open, and under what conditions? When will the island resume operating under the ‘new normal’, and what will it look like?
We ought to stop right there with the questions, because these 2 questions could take a very long time to answer with any degree of useful certainty. But let’s be optimistic and take a crack at honestly answering them.A VAXX Program for Bali
When? I have no idea.
Will it be similar to the rest of the world? I don’t know that either.
Will we still have to wear masks? I have no idea.
What about this social distancing stuff? When can we dine indoors? When can we hug and kiss our friends without wondering? When will get over this fist bump/elbow tapping craziness and get back to shaking hands and hugging warmly? No idea….
National and Local Rules and Regs
What are the new requirements? Not sure.
When will we know? Not sure about that either.
Will the local authorities announce one set of protocols, only to be trumped by a different national plan? Likely.
As we have seen over the past 6 months, the goal posts are planted in sand, for easy removal and replanting. We will simply not know more until……….well, until we know more.
I have had the good pleasure to build our brand around good service to the wide range of foreign property investors here in Bali. While most of our investors have opted to invest in leasehold properties, some have gone the route of the “freehold” (Hak Milik) titles. As you may know from past articles, savvy domestic investors have come down to Bali and really cleaned out a lot of Hak Milik stock. Many deals were done at fire sale prices, some weren’t.Leasehold is different. There are still a million good deals to be had on leasehold properties because Indonesian investors do not buy leasehold. So the needle has not really moved too much at all on that sector of the market. Granted, leasehold only accounts for around 20% of the total market volume, but it has accounted for more than 90% of the business that I have been able to do over the years.So, as soon as we get the vaxx situation in place and the government rolls out some reasonable guidelines, we will gladly start to see a large segment of our foreign investors returning to Bali. Similar to what has happened in the Hak Milik market, there will be a feeding frenzy on leasehold properties of the distressed/highly motivated sellers. Even the good investment properties that rely on substantial rental income will be another 6 – 12 months behind the curve, as the global markets slowly return to worldwide travel.
So, how do you ensure that you get in on the great deals early?
Individual answers will vary based on a wide range of personal issues; overall health, level of fear, vaxx or no vaxx, ease of entry into Bali, ease of re-entry to your home country and more. We fully anticipate that once the major hurdles have been passed and some reasonable protocols are in place for international travel, our market will see a massive surge as folks who have been waiting to invest (for whatever reason….ROI, peace of mind, exodus from the city) for a year or more will be free to come and go.
Call us for more information on what you can accomplish from the comfort of your own home as you prepare yourselves to invest in a place in Bali. Retirement? Work from Home? FIFO? The sky is the limit, but the best properties aren’t. Act now.