How to Invest in Real Estate in Bali: A Comprehensive Guide. Part 1.
- Olga Kurak
- Apr 12, 2024
- 5 min read
Updated: May 15, 2024
Hello everyone,
It's been a while since we discussed investment opportunities in Bali on my OlyaBlog. In the second post, I talked about our project with Santiago Serena Villas Uluwatu, for those who want to buy property in Bali, where I described how the idea of its creation was born, and at the end mentioned a list of questions about investments and real estate in Bali that we most often receive from people and promised to answer them. So today let's continue the topic of investments, where I will answer all the questions.
The information provided below will be interesting for those who want to invest in real estate in Bali but don't have the opportunity to be on the island or fly here more often to control the whole process. Therefore, choosing a reliable partner is the most important component of success.
I came up with the idea to model a situation where "You wanted to invest in real estate in Bali" and describe your actions step by step, what to pay attention to, the pros and cons of investing in real estate in Bali.
Regarding real estate investments in Bali, there are two options here: to buy a ready-made villa/apartment or off-plan property.
If everything is clear with a ready-made villa, then what is off-plan?
Off-plan property is property before a building is constructed on it. Planned constructions are usually offered to first buyers as projects so that the buyer can get more favorable financing terms.
In a fast-growing real estate market, buying off-plan allows investors and property buyers to purchase property at a lower price than if they wait for the start of construction or when construction is completed. Of course, there are risks in such an investment: the developer may cease operations before completing the construction of the property, and the buyer may not be able to recover the invested funds. Another problem with off-plan property is that the finished property may not meet the initial expectations of the buyer, both for subjective reasons and due to material defects. Companies servicing investment projects in the real estate sector are called development companies. That is why it is crucial to find a reliable developer to reduce these risks and ensure a successful investment.
Today we will consider the situation of how to choose an off-plan project. You are thousands of kilometers away from Bali, and you need to choose a house that is offered to you "on paper" - how to avoid mistakes in such a situation.
So let's get started!
You have heard about investment opportunities in Bali, which offer options to buy a villa or apartment on the island, and you are interested in this business proposition. What's next?
Of course, you start searching for more information on the internet. The number of companies currently offering real estate investment opportunities in Bali is simply staggering.
When I was writing this post, I thought of leaving the next paragraph only in Ukrainian, as for most Ukrainians, it's important not to cooperate with Russian businesses and not to be a "sponsor" of the war brutally started by Russia against Ukraine on February 24, 2022. But then I decided - no. This information will be relevant to everyone, whether you are from Ukraine or not. I can confidently say one thing: most scandals and problems are associated with companies of Russian origin, especially concerning out-of-scale projects. These projects are often too large for the neighborhoods, with architecture more suitable for big cities, leading to the destruction of the surrounding environment.
It is recommended to search for information about the company on the internet or social networks to check the "company's history," who are the owners or head managers, which projects have already been implemented, and whether the locals from the region are satisfied with the appearance of the new property.
There are also many real estate agencies (intermediaries) that offer their clients proposals from various developers for a commission. When turning to intermediaries, inquire who the developer is.
Most companies provide free consultations and send detailed presentations about their product. When meeting with a company representative, it is important to be prepared and know what to ask and pay attention to. The following questions should be asked to the manager of the company offering to invest in their off-plan project:
Request the company's documentation and all necessary licenses for conducting business in Indonesia;
What is the reputation of the developer?
What is the expected completion date of the project?
What is the payment schedule?
What is the expected return on investment?
What are the terms and conditions of the contract?
What is the track record of the developer in completing projects on time and within budget?
What are the risks associated with the investment?
It is important to carefully review the contract and seek legal advice before signing any agreement.
In conclusion, investing in Bali real estate can be a lucrative opportunity, but caution must be exercised when selecting a company to invest with. Researching the company's history, the developer's reputation, and asking the right questions can help ensure a successful investment.
And finally, I will briefly tell you about our company with Santiago, which also offers the off-plan project Serena Villas Uluwatu as an opportunity to invest in real estate in Bali.
About us:
Santiago has been working as an architect for more than 20 years. The geography of his projects is impressive:
Brazil: Rio de Janeiro, Sao Paulo, Buzios, Angra dos Reis;
Thailand, Phuket;
Indonesia: Mentawai Islands, Bali, and Lombok.
He leads projects entirely from idea to completion. Santiago has been on Bali since 2016, his portfolio includes more than 25 completed projects, he has extensive experience working here, has met various professionals in his field.
Personally, I have over 20 years of experience in the hotel and tourism industry, starting as a hotel receptionist, later becoming the hotel manager of one of the best recreational complexes in Ukraine - Derenivska Kupil. Currently, I am the founder of Consulting OK, a company that helps hotel owners develop their business.
Our company is officially registered in Bali, all documents are in place.
We foster friendly relations with the local community and hold deep respect for the traditions and culture of Bali. Our project seamlessly blends the island's style with modern elements and natural materials. All our partners and contractors are reputable local companies with proven expertise in their respective fields.
Website of our project: www.serenavillasuluwatu.com
If you have any questions, write or call us at: +62 821 47845541 (WhatsApp).
To find out when the second part of the post about investments in Bali will be released, subscribe to my newsletter.
See you soon!
Olya.
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