PT Bali Nirmana Property, a property investment firm in Bali, Indonesia, wants Bali holiday villa investors to know five insider investment insights. The company wants would-be investors to be familiar first with the ins and outs of investing in holiday villas in Bali before they finalize any property investments.
Patrick Clancy, a real estate agent with PT Bali Nirmana Property at their Denpasar office, says, “A holiday villa in Bali can be quite affordable, but it can also be a risky investment if investors are not careful. While Indonesia is a beautiful country, it is also bureaucratic and many of the agents who are selling land or villas may not be trustworthy. It is therefore essential to know certain investor insights.”
An important insight that must be taken into account is to avoid purchasing a villa that is located a significant distance from the sea. It is important to avoid locations that are five kilometers or more from the sea. Most tourists coming to Bali will want a villa that is near the beach. Only a very small percentage of them will be willing to compromise regarding the distance of the villa to the beach.
Another important factor to consider when investing in a holiday villa in Bali is the budget. The budget should be large enough to ensure that the service for tourists is not compromised but at the same time, it is vital to make sure that investors do not overpay. Thus, it is essential to do some market research. And it is important to be wary of agents who promise substantial returns on investment. It may be good to consult with a reliable property management firm.
Another insight they would like to share is to always choose agents from a proper company with an office and has a good reputation. A good and proper agent has a contract with the owner of the villa. Agents who claim they have a “friend” selling a villa cannot be trusted. It would be likely that they will no longer be there when the investor encounters some problems.
It is also advisable for investors to make sure that they are doing things legally. In order to build a villa in Bali, a building permit is required. For those who are buying an existing villa, they should make sure first that it has a building permit. And for those who want to rent out their villa, they will need to secure a guest house license. It is also vital to ensure that the zoning of the neighborhood is appropriate for a villa. It is not advisable to purchase land in a green zone. Also, foreign investors cannot buy freehold villas because all free-hold transactions for them are illegal.
And in terms of risks, investors need to know that there are various kinds of risks when investing in properties. First, there is the general market risk. It is important to realize that all markets will either go up or down based on interest rates, the economy, inflation, and other market trends. Then there is the asset-level risk, which is shared by every investment in an asset class. In hotel villas in Bali, there is the fluctuating demand for villas that can be affected by the economy and even natural disasters. There is also the idiosyncratic risk, which is a risk that is specific to a certain property. It has to do with a certain attribute of the property such as its location.
For 10 years, Patrick Clancy was involved in more than 400 property transactions in his role as property agent, general manager, and Director of Sales for two of the large real estate brands on Bali. And in 2018, he and his friends launched Bali Nirmana Property to serve the needs of property investors in Bali.
Those who need more information can check out their company website or they can visit their Facebook page at https://www.facebook.com/pg/ptbalinirmanaproperty/photos/.
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For more information about PT Bali Nirmana Property, contact the company here:
PT Bali Nirmana Property
Patrick Clancy
+62 817 9733 031
hello@balinirmanaproperty.com
Jl. Bypass Ngurah Rai No.245, Sanur, Denpasar Sel., Kota Denpasar, Bali 80228, Indonesia
