Luxurious Shelter, Remote Purchasing & Your Bali Dream Villa
Bali Property Report
The Best of the Best Holiday Rental Villas are Now Available for Monthly and Yearly Rental.
For an evening to a month at a time, at prices ranging from about $70 to $4,200 a night, online rental platforms offer anyone a chance to live the dream in Bali. Before the global shut down, property investors in Bali – assuming that they and their villa are up for it – were earning returns as high as 12-15% of the asking price/market value of the villa. As these investors either developed their own property or purchased at a time when the market prices were much lower, their returns are in fact nearly double that in many cases. If the owner and villa were up for it, which in this case means much more than the just the right location and good enough architecture. Don’t get me wrong, those villas with a good location and good enough design can and do earn their 10% a year in many instances, but when design, proximity, WOW factors, and the myriad of individual touches are combined with the right location, returns in the 20%++ bracket are not atypical.
Now that the prolonged shutdown of the international terminal at Ngurah Rai airport may continue through the end of the year, are the best of the best villas available for annual rental? In some cases, yes! In some, no. And in others, it just may depend on what the tenant is willing to pay. It’s that kind of a market right now.
Yearly Rental : IDR 750 million
Listing Price for 17 years Leasehold; USD 1.265.000 (HIGHLY negotiable)
Getting into Bali, without a KITAS (residential visa) is not easy if you are a foreigner. But if you can get here under a KITAS, or if you have an Indonesian passport of course, or if you are here already, then one of these fine gems could be your shelter in place Shangri La for a lot less than you might imagine. Curious to know how you can get a KITAS from the comfort of your living room? Give us a call to learn more.
The market is not as quiet as one might have imagined. While on one hand, there has been a flurry of activity with the local and expat markets living here in Bali and coming down from Jakarta, overseas enquiries are popping as well, as investors seriously consider remote investing amidst this current price crunch. Having said that there is a price crunch (reduction) underway, the phenomenon is not universal. Villas that have secured yearly tenants are enjoying having their asset well looked after every day, and since their costs are being covered by the new tenant, the property is not losing value or costing out of pocket “losses”. Staffs are maintained in full or close to it, salaries are at 100% in most cases, and the tenant enjoys social distancing like never before.
So why buy now? Because in 12-24 months a.) too many of the villas on the market today will still be on the market and b.) in 12-24 months, we ought to be able reasonably predict that our tourism numbers will have rebounded and the investment villa business will return to its once ‘normal’ pace. The discounts that may be found in today’s market will not be found in the market of 2022/23.
“Listening to the news every night got a little unnerving,” said Nicolas B. of Singapore, 43, a father of 2 living and working in Singapore since 2004, who is in contract to buy a four-bedroom, three-and-a-half-bath villa in the north of Canggu, remotely.
The shutdown in Singapore really hit home for Nicolas and his family because their current residence in Singapore, which already felt like it was growing smaller as the children got bigger and their range of collectibles grew along with the family, has finally gotten to be too confining, too small. “It is really the perfect time to enjoy more fresh air, more clear skies and a better quality of life for me, my wife and my children”. The children will school remotely with their current academies in Singapore while Nicolas will work from home, with an eye towards twice-monthly trips back to Singapore once travel becomes more simple again.
“We have been coming here for years and we have stayed in all four corners of Bali and beyond. Sophie and I had often spoken about investing here and 2 years ago we bought a couple of one bedroom villas in Seminyak. We are familiar with the processes to invest here, so we have rented those 2 villas for the year and we will move into the new place by the end of September”.
Bali wasn’t a totally random choice. But Nicolas isn’t surprised other people are streaming in. “What’s happening is a trend for a reason,” he said. “A lot of people are probably looking at their situation in the same way that we were.”
Singapore residents aren’t the only ones seeking greener pastures. Requests for residential properties are coming in from South Africa, Germany, France, Jakarta and Hong Kong.
While the prolonged airport shutdown does not help our foreign investors at all, we have found that “where this is a will, there is a way”. Reach out and let us know if there is anything that we can do for you today. Perhaps we can help you find some luxurious shelter, or if you are of a mind to do so, we can source out your next investment property or family home.
To learn more, contact Patrick on Whatsapp/handphone +62 817 973 3031; [email protected]