Forums / Property Investing / Overseas Deals / Investing in Bali, good step or?

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  • Profile photo of BoogieBoogie
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    @boogie
    Join Date: 2011
    Post Count: 4

    Dear everyone,

    Can anyone voice opinion on investing in Bali? Saw a lot of investors gained a lot of money by buying a property and rent it out. Not to mention those who have sold their lands and villas.

    Thank you.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    Probably a bad idea!

    see my comments here
    https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4335562

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    Profile photo of BoogieBoogie
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    @boogie
    Join Date: 2011
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    Thanks for your feedback Terry, it really gave an enlightenment.
    Need more comments on it so I can see both the benefits and the bad side. Anyone else?

    Profile photo of biggaz13biggaz13
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    @biggaz13
    Join Date: 2011
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    When I was in Fiji last year I did a little research on buying a freehold property near the beach.

    Some good. Mostly bad.

    + Exchange rate was fantastic.

    + Free hold property was in fact near the beach and Nadi airport and thus enticing

    + Beach looked beautiful

    – Some parts near the area had a real 3rd world feel about it. You know, steel bars over windows, stray dogs, rubbish scattered by the road side, roads in serious disrepair.

    – Seriously……….how was I going to keep a shrewd eye on the property in the South Pacific?

    – I got the feeling that if the government suddenly decided freehold property to foriegners was a bad idea then they would simply take the property back and a "Bad luck to you sir. Come again".

    – Cyclones have been known to sweep through Fiji. Insurance was difficult interpret.

    – Skilled property manager issues- No bank in Australia was going to borrow me money to buy the house. So cash sale only.

    – From memory it was still going to cost about F$300,000 to buy a house there.

    – Tax implications I simply didn't understand.

    – I read the paper over there daily and in the employment section, wages were terrible. Even professionals were being offered very low incomes. Who's going to rent your property out at a decent rate to cover your holding costs?????

    – Touted as the "Next Hawaii". But I just couldn't see it.

    Sorry. Too many negatives for me. I appreciate different geographical area but there would be similar international issues to overcome. Good luck. 

    Profile photo of glaucusglaucus
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    @glaucus
    Join Date: 2008
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    I was going to invest in Bali around 18 years ago. A half acre at the top of a hill down on the Bukit peninsular for approx $5,000 Australian dollars. I didn`t but quite a number of Westerners did.

    These days they are sub-letting the land for around $13,000 per 10mX10m square: called an ARE.

    So, how many 10X10m squares can you fit in half an acre? The half acre I passed up is valued at $286K which isn`t too bad considering property doubles every 7-10yrs!

    So if you are risk averse, bounty to be made.

    Profile photo of mattstamattsta
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    @mattsta
    Join Date: 2011
    Post Count: 604

    I'd suggest you do research about the real estate policies and laws in Bali and check out the implications that it'll have on you.
    Remember that they will be very different to the Australian context.

    Also, make sure that you do your due diligence and ensure that it's actually a profitable investment!

    Profile photo of PaulliePaullie
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    @paullie
    Join Date: 2009
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    Id never goto Bali, so I wouldnt be there either.

    Profile photo of thecrestthecrest
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    @thecrest
    Join Date: 2004
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    The South Pacific is beautiful and enticing, however it is a graveyard of expatriate entrepreneurs.

    We lost everything there ourselves due to corrupt officials, so speaking from bitter experience.

    Coconut Govts change the rules anytime they like, forget democracy there, and well placed officials
    can take anything they like one way or another, or win by attrition.
    The systems there are setup to maintain financial control of locals and even moreso expatriates.
    Play politics if you dare, but influential locals can extinguish your visa with a phone call.

    Cheers
    thecrest

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    Profile photo of PaulliePaullie
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    @paullie
    Join Date: 2009
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    Again why would you goto a place like that.

    Profile photo of thecrestthecrest
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    @thecrest
    Join Date: 2004
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    We didn’t know how bad it was, and accurate information was difficult to get.

    There was no forum at that time. :(

    cheers
    thecrest

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    Profile photo of PaulliePaullie
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    @paullie
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    You only have to look on the news to see what a corrupt and unstable place it is.

    I hope youve recovered ok.

    Profile photo of thecrestthecrest
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    @thecrest
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    Thank you Paullie we have recovered and then some, thanks to the motel industry, family n friends, the Forum and forumites and all their combined info and help by posting, PropertyInvesting.com mentoring program, and a lot of hard work, and the democratic system and abundant opportunities Australia has to offer.

    Cheers
    thecrest

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    Profile photo of JAMES TANNERJAMES TANNER
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    @james-tanner
    Join Date: 2014
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    I am working in Bali, and there has never been a better time to go over and get involved with the investment game. 10-20% growth annually. Great ROI'S to be had.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    James in the interest of all of us why not post some actual numbers on some real deals.

    Cheers

    Yours in Finance

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    Profile photo of CatalystCatalyst
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    @catalyst
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    JAMES TANNER wrote:
    I am working in Bali, and there has never been a better time to go over and get involved with the investment game. 10-20% growth annually. Great ROI'S to be had.

    What type of work are you doing there?

    About investing there-

    Where? and in what? Gross ROI looks attractive but the bottom line often tells a different story.

    Profile photo of JAMES TANNERJAMES TANNER
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    @james-tanner
    Join Date: 2014
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    Rentals for starters.are very lucrative. Where I am located a 250k villa can yield 2-300usd a night.

    Profile photo of JAMES TANNERJAMES TANNER
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    @james-tanner
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    I would love to put some numbers up here, but through fear of reprisals i won't!

    If you would like to send me an email, I  would be happy to share.

    Profile photo of RedwoodRedwood
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    @redwood
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    Your really not helping yourself James, your coming on here saying invest in Bali, yet you are afraid to provide some rationale to tell us why? 

    Cheers, Ivan

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    Profile photo of JAMES TANNERJAMES TANNER
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    @james-tanner
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    Ok, 

    Currently Bali has the most expensive land per M2 anywhere in the world. Savvy investors are cashing in on this. 

    Example, a 300,000usd ( ex VAT) investment and at 20% growth annually will net you, less inflation a tidy 11%+ yearly. 

    Rentals are also very lucrative at 250-350 per night USD. An that's where I am based. The more expensive villas are charging 1000+usd per night (low season )

    Also the relaxed laws here have made it easier to own property, as a foreigner. Unfortunately as long as the Indonesian constitution states that no foreigner is permitted to own any land outright, if you hear differently then walk away. This is unlikely to change for the foreseeable future

    Profile photo of PropertyGutsPropertyGuts
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    @propertyguts
    Join Date: 2010
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    yep, i have done a few trips to Bali too. Like Glaucus, i was offered an opportunity 15 years ago to 'get in' – land on Bukit Peninsula with fantastic ocean/mountain views.  I didn't at the time because of concerns about the land tenure system (James would be able to clarify, though to my understanding non-Indonesians can not own land, but only get a long term lease).   However, my Kiwi mate did get in 15 years ago, built a beautiful villa (all up under $50K) and today values it at $1mill.  As James says, i also heard Kuta now has some of the most expensive commercial land in the world per sqm (the peak before the bust? Savvy investors would be selling out perhaps?).  Good luck with it James.

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