steven 13th July 2020 Real Estate Guides no responses

Seminyak is the chicest and the most popular tourist beach town in Bali.

It has been the most popular tourist destination in Bali for decades already and if you are looking to invest in Seminyak Villas, you can be pretty sure of fabulous returns despite the high competition on the villa rental market in this area.

Posted by Nathan Ryan on 13 July 2020

Look to buy villas located in the centre of town within walking distance to the beach and Oberoi Road and you just can’t go wrong.

There is a high demand for Seminyak properties and land which means, the prices aren’t cheap at all like when you look for land or property more land inwards but you can be pretty sure your investment will pay itself back in the end.

Why Seminyak

Seminyak is one of the main tourist hot spots on the island. Many holidayers return to Seminyak every year to stay in a beautiful villa, eat at world-famous restaurants, shop at designers boutiques and lounge at celebrated beach clubs such as KU DE TA and Potato Head. Seminyak has got the perfect blend of pure Bali magic and modern cosmopolitan luxury living. Great coffee, excellent food, nightlife, beach, surfing, shopping malls, you will find it all in Seminyak. The location of this buzzing beach town in the south of Bali is also very strategic towards the international airport and other favourite destinations among holidayers such as Canggu, Uluwatu and Sanur. Seminyak is packed all year round and it always will be a major tourist hub. One of the biggest in Southeast Asia. In Bali, Seminyak takes up 45% of the demand for villas among holidayers and that’s why you should pick Seminyak to look for real estate and make your investment.!

Look for property near the beach and Oberoi’s Eat Street

Oberoi is the most requested location among holidayers looking to rent a villa in Seminyak but what’s most important for success is that the property is within walking distance from the beach. Most people looking to rent a villa in Bali are Australians, Europeans from the UK, France and The Netherlands, Singaporeans and Hong Kongers. Singaporeans prefer modern villas, Europeans love a more traditional style (not old-fashioned!) and they like the villa to be located a little bit away from the crowds. Australians on the other hand, want to stay in the centre of the action, near to shops, spas, restaurants and beach clubs. Most travelling groups are looking for 3 bedroom villas and the average price of a 3 bedroom villa is USD $350/night. A villa with modern comforts and a stylish minimalist design are preferred.

Must-have features, facilities & services

Definitely, a fabulous private swimming pool is a big must! Furthermore, people expect fast, reliable wifi at all times and they want their villa to have a sprawling tropical garden where hey can relax and soak up the tropical island vibe. Having a personal chef at the villa is also something high in demand and baby-friendly facilities including a pool fence are often requested. With the high competition on the Seminyak Villa Rental Market, the marketing of your property is very important. Simply owning a villa and expecting bookings to come in is not going to work. You have to make your villa stand out from the crowd and market it as a
family-friendly villa, surf villa, yoga villa or something like that. Good photography and videography of the villa also do wonders.

How much does it cost to buy property in Seminyak?

Prices do vary but to give you an estimation, the price of a 3 bedroom villa in Seminyak starts from around USD $ 500,000. Your villa should be repaid in 10 to 12 years or so when putting it out on the Bali Villa Rental Market.

Budgeting is important!

The costs of investing in Bali real estate doesn’t end with buying the perfect villa in Seminyak. It costs money to furnish the villa, to pay for the staff and maintenance of the villa, outsourcing the marketing of the villa and getting a professional photographer/videographer to take photos and videos of your Bali Seminyak Property. This is super important as the competition is high! So, the bottom line is, budgeting is important to avoid surprises later on. Also include the agent’s commission fee, notary fees and taxes.

How do I buy a Seminyak Villa?

If you are serious about buying a villa in Seminyak, you probably already know a thing or two about foreign ownership of Bali property. You have familiarised yourself with the local laws and restrictions a little bit and already know that foreigners cannot own land or property in Indonesia. If this is news for you, do not stress! There are many ways foreigners can invest in real estate. You can read all about it ​here​.

What NOT to do

Rule #1 = avoid buying a property in Seminyak (or anywhere else in Indonesia) under the so-called ‘nominee agreement’ as you risk losing your entire investment as you yourself do not legally own it. Instead, find yourself a reputable real estate agent to guide you through the jungle of laws, obligations and restrictions regarding buying a property in Bali as a foreigner.

Get the right permits and find a trustable agent

If you want to rent out your villa, you have to achieve the right permits and you have to pay attention to where your villa is located as it is no allowed to rent out properties in residential areas. Your agent will help you with all that and more to make sure your investment is safe and legal. Do your homework and find an agent you can trust and you should be just fine!

Also read: Bali Real Estate Guide

 

Bali Realty Nathan RyanThis article was posted by Nathan Ryan who has had over a decade experience in the Seminyak real estate market. If your thinking about buying, selling or investing in the Seminyak property market, Nathan is you’re ‘go-to’ guy. View some of Nathan best Seminyak properties for sale.

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steven 30th June 2020 Leasehold Villas no responses

Buying a property for foreigners in Bali is a dream come true. Most foreigners can’t buy Bali real estate as Indonesian laws can be strict.

But, don’t stress as there are other more accessible options where you can invest in your slice of tropical heaven. 

Posted by Nathan Ryan – 30 June 2020

Owning land or a Bali villa is not possible unless you’re an Indonesian citizen. The government makes this process quite tricky, and although it’s likely the challenges and hurdles to attain this are lengthy and expensive. 

The other, much simpler option is to either rent or leasehold the property. While both are very similar, there are differences that you should know about before speaking to any Bali real estate agents.

Most people will think that leasing a long term property is the same as a long term rental. In some ways, they are the same but having a Bali asset for some time has significant differences.

When you’re signing a Long-term Rental property, the lease is generally 1 to 5 years, and a leasehold is anywhere from 5 to 30 years. A leasehold agreement must be drawn up by a local property lawyer known as a Notaris. There are many Notaris in Bai, and your real estate agent should be able to point you in the right direction and be able to recommend reputable lawyers they have worked in the past.

So with this limited knowledge, what is the best way to go for you. You first dip your toes into the Bali real estate market by signing a long term rental agreement or do you go all the way and commit to a leasehold agreement.

Long-term Rental and a Leasehold property: know the difference.

A long-term rental property is usually between 1 to 5 years, and the owner of the villa will rent his property out for this period. The tenant will pay the years rent in advance. The owner and the tenant sign the rental agreement, and there’s usually a witness by the real estate agent.

Advantages of a long-term villa rental

1) you come back and forth to Bali and need a permanent place to stay.

2) you are going to be working in Bali for a specified period.

3) great for families that intend to relocate to Bali.

4) you have a limited budget and don’t want to invest lots of funds upfront for a villa.

5) no lengthy contracts

6) you might be able to bargain more with the owner if you take it for a more extended period

7) you get villa staff included in the rental such as housekeepers, gardeners, security and villa manager in some cases.

8) any maintenance issues are paid by the owner – this is important to note as, in Bali, some villas may have many problems such as mould, water leaks, broken air-conditioners, wifi, etc.

9) you might be able to sublet the property if you need to break the agreement. You will need the permission of the owner to be able to do this.

10) you can move around the island and rent somewhere else at the end of the agreement. Basically, it doesn’t tie you into one area for an extended period.

Advantages of a leasehold villa

Leasehold villas in popular tourist areas like Seminyak or Canggu are a great investment and deliver a huge ROI if managed properly

Although as a foreigner you do not own the villa or the land it sits on, you have the lease of the villa for a very long period. The ownership remains in the name of the titleholder or landowner.

You can lease the property or land generally up to 30 years with the opportunity to extend another 20, 30, 40 or 50 years. Under this arrangement, the foreigner can sublease the villa to another tenant as a short or long term rental agreement. 

Many foreigners make money this way by investing in a leasehold agreement and giving it to an agent to put up for lease or holiday rental. The advantage of this is that an agent can market the villa and get higher rents ( especially if the villa is in popular tourists areas like Seminyak, Canggu or Sanur ). The ROI is so much higher if you do it this way, and in some cases, it can be as much as 10-15%. 

Also read: The top 8 areas to buy real estate in Bali in 2020

Just imagine having a leasehold on a villa near Seminyak Square or Eat Street. The nightly rental rates ( especially during peak holiday periods ) are huge. And, the beauty of it is you can use the villa whenever you come to Bali for a holiday. If you buy wisely a leasehold villa makes a fantastic investment

The drafting of any leasehold agreement should be through a lawyer as you need to make this rock solid. Plus you want to make sure that the lease renewal is in place without too much of an increase.

Once it expires, and you do not renew the lease, all rights and titles revert to the original owner, and it becomes a freehold Hak Milik property again.

In summary

Renting a property or securing a long term leasehold for foreigners may seem complicated, but if you are working with the right team; like us at Bali Realty, it will go smoothly without any hassles. For over a decade, helping foreigners from all over the world enjoy living in Bali.

 

Bali Realty Nathan RyanThis post was created by Nathan Ryan, senior property & marketing agent at Bali Realty who knows everything there is to know about investing, buying and selling real estate in Bali. If you’re thinking about investing in bali real estate, Nathan is the best person to speak to.

 

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steven 15th June 2020 Real Estate Guides no responses

Thinking of buying a property in Bali? Dreaming of living in a beautiful villa surrounded by rice fields or perhaps, making a lucrative business putting your villa in the Bali Rental Market?

All great ideas! Bali is in one word ‘magical’! And, the following guide will help you navigate the path to buying your first villa or that block of land.

Posted by Paula Neron 15 June 2020

Such a small island in the massive Indonesian Archipelago but incredibly unique at the same time with its own culture, traditions, cuisine and religion. The island has been a popular holiday destination for decades already and many ex-pats and travellers choose Bali as their new place of residence. It’s got the perfect blend of unchanged traditional magic and modern conveniences. Especially in the south of the island, you can live in lively beach towns with Western bakeries, cinemas, shopping malls, hip cafes, restaurants and beach clubs. Move away from the main tourist hubs and you’ll feel far from everything and everywhere. Places where it’s just you, the mountains, the sea, the rice fields and local village life. Wonderful! Now, you don’t go buying Bali real estate overnight. You need to think it over, sleep on it and learn all about local laws and restrictions. You need to become a real expert and find a trustable real estate agent to help and guide you in the process of your purchase. Indonesia protects their land and property well, not allowing foreigners to own land or property but still, there are many possibilities for foreigners to go live their ‘Bali Dream’! In fact, the property market in Bali is one of the best performings in all of Southeast Asia. Time to get things straight! You will read all about buying a villa in Bali in this blog, it’s the complete guide to Bali Real Estate.

What’s your real estate goal?

First of all, it’s important to think about what your goal is. Are you buying a villa for yourself to live in here on the island or are you planning to rent it out and make a business out of it? You may think, why do I need to think about it now? Can you not decide it later or make it a 50/50 thing, partly living in the villa and partly renting it out? Well, the thing is, Bali has different zones. Some of these zones are agricultural, some are residential and others are meant for tourism-related purposes. You can not legally rent out your villa if it is built in a residential zone. Also, you need to get a special license called Pondok Wisata if you want to rent out your villa. More than enough reasons to think about your goals and the location of your property before making the purchase. Just remember, you can always make changes to your property but you cannot change the location.

Can foreigners own property in Bali?

Long story short, the answer is no! Indonesia is very protective of its land and properties. Laws are plentiful and the whole process is not transparent which is also why many foreign investors chose to buy property in other Southeast Asian countries. However, Indonesia is looking into making changes to the property ownership regulations for foreigners. They want to attract more foreign investors and in the coming decade, the whole process might become easier and less vague. As for the moment, foreigners cannot own freehold property but there are several titles to obtain, allowing foreigners to use, lease or build properties in Bali and the rest of Indonesia.

So, there is no need to give up on that tropical dream! Here’s an overview of titles to obtain:

Hak Milik (the right to own)

Hak Milik is a freehold title and it is the strongest title one can obtain. However, this title can only be held by local Indonesian citizens and local companies.

Hak Pakai (right to use)

For foreigners, Hak Pakai is the highest title to obtain. It’s a method that the Indonesian government came up with to allow foreigners to get the exclusive use of Hak Milik land. With Hak Pakai, the purchaser gets a separate certificate of title in their name. The initial term is 25 years but it can be extended multiple times up to 70 years. Hak Pakai is transferable should you want to sell your property to another foreign buyer. It is important to note, a foreigner can only own 1 Hak Pakai property at the time. There is one catch: in order to obtain the Hak Pakai title of a Bali property, you need to live in Indonesia and get a stay permit (KITAS). Another option is to start a PMA company, giving you the freedom to own property while residing (partly) overseas. This is the most desirable option although it takes some time and effort to arrange it.

Hak Sewa (right to lease)

Another good option for foreigners to invest in real estate is by leasing property which goes under the title Hak Sewa. Lease periods can be anything up to 50 years, usually agreed upon in advance with the property owner.

Hak Guna Bangunan (right to build)

This title is only available to Indonesian citizens and PMA companies (a foreign-owned company), which is where you would get involved. The title is valid for 30 years and it can be extended for 20 years and then another 30 years.

If you’re thinking about building a property in Bali, it’s important to know that there are restrictions to the height of your building. The locals would say, it shouldn’t be taller than the tallest palm tree around the property which comes down to a maximum height of 15 meters. Also, the property should have some Balinese elements in the design – we don’t want to go offending the Gods here on the island, do we?!

Isn’t there an easier way?

There are always ways to get around the rules but is it wise? Definitely not! You are in a foreign country, you invest a big amount of money and so you want it to be a safe investment, right? That’s what you would think but in reality, many foreign investors bought properties under the ‘Nominee Agreement’ where they bought a property under the name of an Indonesian citizen, bypassing the law. Needless to say, this is a risky business and also it’s illegal. Wouldn’t go there, if I were you as you have no legal protection whatsoever!

So, what’s the safest way to buy property in Bali?

In short, the best and safest option to buy property is by setting up a foreign PT PMA company, allowing you to acquire a Hak Pakai (right to use) title or Hak Guna Bangunan (right to build). It takes time to set up a company and it involves a lot of paperwork and know-how but in the end, it gives you freedom!

Also read: How to buy a villa in Bali without getting ripped off

Where to buy real estate in Bali?

Prices of land and property vary greatly depending on the area you are looking into. Tourist areas like Seminyak, Canggu and Ubud tend to be expensive. Move away from the centre a little bit and you’ll see prices drop. Canggu, for example, has seen massive growth in the last decade and the tourist area is expanding and expanding which gives great options to invest in a property that is not in the tourist centre of Canggu but just outside. However, you must always choose your location wisely! If you are planning to rent out your property, make sure the property is not too far from the beach or other hotspots or you’ll face difficulties in getting bookings. Always remember, tourists will love the location for the same reason you will love it.

The best places to look for property in Bali are Seminyak, Canggu, Sanur, Uluwatu and Ubud. There are plans to open a second airport in the north of Bali, making places like Lovina and Amed also more attractive and profitable in the long run.

Seminyak: ​trendy, fashionable, cosmopolitan, beach clubs, sunsets, dining & shopping streets, ongoing popular! View Seminyak Villas for Sale

Canggu:​ Surfing, nightlife, yoga, trending, weekend markets, beach clubs, sunsets and hipster cafes. View Canggu Villas for Sale

Ubud​: cultural hub, spiritual, yoga, raw food, vegan, shopping, dining, nature, rainforest. View Ubud Villas for Sale

Sanur:​ laid-back, families, villas are high in demand as there aren’t so many in the beach area, Sunday markets, kid-friendly, sunrises, watersports. View Sanur Villas for Sale

Uluwatu​: surfers, beach and rock bars, multiple beaches, awesome scooter drives along the coastline, sunsets, yoga, restaurants. View Uluwatu Villas for Sale

Conduct due diligence

Once you have found that perfect property with the ideal location and a fair price tag, don’t go rushing into making the deal – you need to have a real estate agent conducting due diligence before you buy the property. With due diligence, there won’t be any unpleasant surprises popping up to the surface later on. The Hak Milik ownership certificate will be checked to make sure it is authentic and there is no dual ownership of any kind. Access to the property is secured, the zoning will be verified and more. All essential things to avoid problems later on after you’ve already bought the property.

Mistakes to avoid when buying Bali Real Estate

●  Buying property through the nominee agreement

●  Trying to do it yourself – you really do need a good realtor as well a listing agent. (do note, the ‘other’ listing agent works for the seller of the property).

●  Buying a property without conducting due diligence (ask your realtor!)

●  Not doing your market research. Know your market and don’t overpay!

Do you still have questions or do you feel uncertain? We are happy to help so don’t hesitate to contact us. No strings attached!

Also read: Seminyak Real Estate Guide

paula neron bali realty

View Paula Neron’s LinkedIn Profile.

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steven 10th June 2020 COVID-19 no responses

Is COVID-19 getting you down? Has lockdown slowly sent you stir crazy? Now is the best time to realise your dream of buying that Bali villa.

COVID-19 has only marginally affected real estate prices in Bali, and there are deals to be had. You can thank us later!

By Nathan Ryan, director of Bali Realty

Posted 10 June, 2020

For those buying Balinese Real Estate, COVID-19 is a great opportunity rather than a problem.

Prices over the last four to five years have been increasing year on year, and the COVID-19 pandemic has put a halt to these steady gains. For most would be Bali real estate investors; this is excellent news as it’s now a buyers market.

Also readThe top 8 areas to buy real estate in Bali in 2020

Vendors who are keen to sell their property have been are even keener to sell their villa or land as COVID-19 bites into the holiday villa market. While this is not good news for the sellers, it does present some golden opportunities for those astute buyers that have been watching Bali Real Estate prices climb.

COVID-19 has meant that villas or land, especially in popular tourist hot spots like Seminyak, Canggu, Sanur or Ubud is now within reach of a whole lot of potential buyers that we’re unable to afford to buy their slice of Bali real estate heaven. Over the past years, the dream of owning your villa was simply out of reach.

As real estate agents, we have seen many Australian, and foreign buyers walk away from the market because of the rising US dollar and the massive demand for villas. Prices started to escalate, and there was no end in sight; up until COVID-19. As of today 10th June 2020, we are beginning to see a combination of factors bring the price of Balinese real estate down. These include the Aussie dollar v’s US dollar plus the reduction in demand for holiday villas as borders remain closed.

Villa owners are now holding assets that are unrented and costing hefty monthly maintenance fees. While this will not last forever, because borders cannot remain closed for lengthy periods, the astute buyer is now in the driver’s seat and can negotiate a tad harder than before.

Real estate prices in areas like Seminyak and Canggu have come down by 10-15 %, and there are even villas offering up to 30% reductions. If you’re in Indonesia, you can go to Bali during these COVID-19 times to inspect any villas, but if you’re a foreigner, you will have to use Zoom, Skype or What’s app to speak to the agents.

Most agents will be accommodating and call you via a video chat when they’re at the villa and walk you through it. A virtual tour is the best way to view real estate without being there in person during COVID-19.

Paula Neron, one of the sales team at of Bali Realty, says that: ‘ over the past three or so months we have seen a strong and steady stream of inquiries filtering through from many ex-pats in Jakarta and Singapore. Demand is still there, and is presenting great buying opportunities in this market.’

How long will Bali real estate prices remain low during COVID-19?

No one knows the answer to this question, but as restrictions slowly ease throughout the world no doubt there will be an uptick in the Bali real estate market. If you do your due diligence and look around, you will see that this won’t last for too much longer. Perhaps six months, maybe eight but then as tourists flock back to the island prices will have nowhere to go other than up.

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balirealty 10th March 2020 news no responses

Not one day goes by without hearing or reading about it, the Wuhan Coronavirus has got to us all around the globe. In Bali, there are still no confirmed cases of people with this so-called ‘killer virus’ but it’s already killing tourism on the island, affecting the lives the locals in disastrous ways. Yes, Bali Island is feeling the cold despite no recorded cases!

Bali – a place so undeniably entwined with tourism is suffering. Many holidayers are scared to travel and they’ve cancelled their trips and holidays to the island. This means no or very little income for the local taxi drivers, street vendors, shop owners, homestay, villa owners and so on. .

Nathan Ryan, marketing manager of Bali Realty Holiday Villas, one of the biggest villa rental companies in Bali, says they are currently operating at occupancy levels of just 30% due to to the decrease of tourists coming in after the virus outbreak. He also says 80% of the current guests are coming from Australia. His company are offering guaranteed refunds or the ability to move your booking to another date within the next 12 months in the same villa to anyone who has their flights cancelled due to the coronavirus or can not travel due to quarantine restrictions. These conditions apply to all new bookings made after 29 February, 2020.

Compared to January 2020, tourists arriving on the island of Bali have dropped with 33% in February. At this moment, the Australians are keeping the Bali Tourism Market alive.

Flights to and from China have been banned for weeks already since the 5th of February and the government also imposed travel bans from Italy and Iran since early March. Thermal screenings and being applied at Ngurah Rai International Airport in Bali. Anyone with symptoms like fever or higher temperature is sent to the hospital for 14 days of isolation and observation. There are 3 hospitals for treating coronavirus patients if needed and tests are currently being sent to Jakarta, giving results in 2-3 days after the check.

One of the biggest fears now is Australia imposing travel bans to Bali and Indonesia. This would make the tourism market collapse completely and thousands of local jobs will be at stake.

Save Bali and don’t cancel your trips! Beautiful as always, quieter than ever and as for this moment, still perfectly safe. Bali needs you!

P.S: Bali still has plenty of toilet rolls in stock, if that’s something troubling your mind 😉

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balirealty 24th December 2019 news no responses

Where to go for an unforgettable New Year’s Eve Party in Bali 2019? It’s a tough choice… there are just too many epic parties going on at spectacular venues! To make things a tiny bit easier, we made a selection of the hottest venues this year in 2019 on the island of Bali: Continue reading “New Years Eve in Bali 2019”

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balirealty 2nd December 2019 bali property no responses

Thinking about living the dream? Well, why shouldn’t you?! Buy a sprawling piece of land or a gorgeous luxury villa in Bali, no matter what you’re planning to do with your slice of heaven, it’ll be a good idea! Residing on the ‘island of Gods’ is pure bliss and at the same time, renting out your villa very lucrative. Continue reading “The top 8 areas to buy real estate in Bali in 2020”

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balirealty 14th November 2019 bali property no responses

This beautiful Balinese style villa located within the ever popular location of Seminyak offers an outstanding invetsment opportunity for the astute property investor.

This licensed holiday villa rental property has established rental history of over 5 years with net annual returns of over 12% making it one of our best Bali villa investments.

The villa is built around a large centrepiece swimming pool and features spacious open plan living and dining area, and 2 master bedrooms on one side and 3 king size ensuite bedrooms in a separate building on the other side and all complimented by lush tropical landscpaerd gardens. Continue reading “Bali Property of the Month – Outstanding Leasehold Villa Investment – 12% p.a. Returns”

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balirealty 5th November 2019 bali property no responses

You’re not the first to fall in love with Bali, dreaming of buying a private villa and living the tropical dream! However, some research is required because we’ve all heard about some rip-off stories or perhaps you’ve even heard about the local laws and in specific the (im)possibilities Bali property ownership by foreigners. It is a complicated matter but really, it’s not all that hard as long as you know what you’re doing, you are well-informed and you know what not to do. Buying a villa in Bali can also be a great investment, creating passive income and before you realize it, you’ve earned your investment back! Here’s are some basics you need to know before you get started on turning dreams into reality – how to buy a villa in Bali without getting ripped off: Continue reading “How to buy a villa in Bali without getting ripped off”

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balirealty 5th November 2019 bali property no responses

Thinking about buying some land and building your dream villa in Bali? Are you a foreigner just itching to have your own slice of paradise? Or are you looking for a great Bali investment property?

It’s all possible and you can be sipping cocktails in your own private villa. Read what we have say; you’ll thank us later!

At Bali Realty, in conjunction with resident international legal experts, we can assist and guide you smoothly through the process of acquiring your dream home or idyllic investment property. Here are some of the basics you should know about: Continue reading “Foreign Ownership Of Land and Property in Indonesia”

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