First time I see someone making sense in Bali. These numbers are real, all (Balangan prices, if 5 mins to the beach, they start at 12M/are/yr, with a lot of leg work). We are doing developments in balangan, melasti, pandawa, etc. Buying the land before all boomed allows us to currently sell our villas at 170k-220k AUD. Go Rory!
Hi Rory , I’m so impressed with receiving the comprehensive easy to follow guide on purchasing in Bali . One question since the guide was printed and now with new president they are talking about going ahead with airport up North , does this change your view on areas that will go up next ?
If they ever actually get the airport going then I think there is huge potential in the north. Lovina and Amed are the two that spring to mind for obvious reasons but it’s going to open doors in a lot of other communities. They’ve been talking about that airport for 20 years though so I’ll believe it when planes start landing there.
amazing video honestly, this really makes everything so clear as someone who is looking to get started in bali, would love to work with you in some capacity also.
Thanks for another fantastic and informative video about investing in Bali Rory- congrats on selling your Bingin villa and best of luck on your next investments in Bali!
Hi Rory, thank you for making this video and also your amazing book. Buying that was an excellent investment in itself! My question, what are your thoughts on Ubud? Land seems to be quite cheap and quality rental properties in short supply. Grateful for your wisdom and insight on investing in Ubud! Thank you!
I really like Ubud but it's definitely a saturated market. Purely from an investment perspective you won't get as good a return there as you might get elsewhere but if you're doing it to stay yourself I'd say go for it. Ubud is lovely.
Glad to see you back with great information 🙏 Question: Have you ever been to Sanur? And if so, what do you think about it from an investment perspective? There’s an international hospital, haven to the small islands and a big shopping mall that attracts lots of people to visit there. With the great beaches I thought this could also be a great place to build. Would love your opinion on this location. Thanks!
Thanks for watching! On a personal level I really really like Sanur. I think it's almost the perfect mix of beach, walkability, bars and restaurants. The new big complex there can only add to what was already there. If I was looking at a place to buy to live it'd be up there. If I was looking to buy as an investment I would wonder if the value is there. It's hard to get land close to the action and the amount of development there means that the returns aren't going to be as high. I've stayed there a few times relatively cheaply. Still money to be made! Just maybe not as much % return as other places
I think Nyang Nyang is another great place as an investment! I love the beach there. It’s probably closer to Uluwatu temple than Uluwatu is so it’s nice and close to the tourist attractions and already has some high end resorts in the area. Can’t go wrong!
Hi, I’ve stumbled across your channel and your videos are amazing. I’m planning on building my first luxury villa as an Indonesian, and you’ve clarified many aspects of doing that for me. I have a question for you. I’ve seen that the government is planning on applying a moratorium in certain regions of Bali. What do you think this means for the real estate market? I believe it’s going to increase the value very much all over the island because they plan on building better infrastructure to welcome even more tourists while protecting the greenery and farms. With this in mind, what are the locations that you think would grow the most in value in the long term?
It's a great question and one that I'm not sure how to answer. Bali often says they will change the law and then just not do it. There's not enough information out there now to know what they are actually planning. For instance even in the last year or so Bali was absolutely banning all foreigners riding bikes and banning everyone from climbing the mountains ..... Neither of these things ended up happening. I feel that there is too many powerful people invested too heavily in land, construction and development for the moratorium to go ahead without significant push back from a lot of powerful and influential people. If anything I think it will drive the prices of villas down long term because it will destroy investor confidence on the island and the money will stop flowing from investors and developers very very quickly.
@@RoryandCasey I see what you mean. I guess we will find out in a few days, since it’s supposed to start in October. I think either way, I won’t be building in the very popular areas but rather in emerging locations like the ones you’ve mentioned. (Except for Tabanan since you were right that it was going to explode with tourists)
@@yanan7801 yep I think if this goes through then the areas I've listed will increase in value. Candidasa and Amed will probably become more popular. Lovina would be worth looking at too.
In my opinion, and I would appreciate your feedback as a prospective investor: 1,. Finding land in Balangan for 6 million seems virtually impossible. I believe the starting point would be at least 7.5 to 8 million, or more likely, significantly higher. 2.- €500 per night for a one-bedroom villa on 1 are? This scenario seems excessively optimistic, to say the least. Is this truly realistic in your view? 3.- An 80% occupancy rate also appears to be an extremely positive scenario. While there isn't much real data on Bali's real estate market, the consensus is that annual occupancy rates typically don't exceed 60-65%, which is already high considering Bali's year-round pleasant weather. Perhaps 80% or more is only achievable during peak seasons and with excellent villa management. 4.- An ROI between 21% and 35%! I wish it were true! However, more realistic ROI figures currently range between 13% and 15%. Could you please share the sources of your information? I would be happy to be proven wrong, as your figures are very positive for me as a potential investor. Thank you for your input.
Great questions! I’ll answer them as best I can. 1. 6million is still possible with legwork to find it. 7-8 is easier to find off the shelf. Sure I’ve seen the same 15-20million blocks but it’s optimistic by the seller. You can do a lot better than that price wise with some research. 2. Yep 500 euro isn’t possible. The numbers in this are in Aud and for two 1 bedroom units which is in my opinion the most efficient way to split up 2 are of land so when I say $500 I’m saying $250aud per unit per night. 3. 80% is conservative. I have real world experience and we were at 90%+ in Bingin. Just look at Airbnb bookings. Most new villas over the next 30 days are already at 70-80% and they will fill most of those spare dates with last minute bookings. Sure some never reach that but that’s on them and their marketing/management 4. Roi of under 20% is definitely the norm if you buy off plan as a lot of your profit goes to the developer. You wouldn’t get land and two villas for 290k Aud if you bought off plan with a developer it’d be closer to 500k. They need to make a profit. These figures are if you do the legwork yourself finding land and then sourcing contractors etc to build the project. It’s more legwork but the payoff is higher returns. Hope that helps to answer your questions! My source for a lot of the information is a mix of airdna for rental and occupancy data, collecting and collating data on land prices over the last 6 months and over 2 years experience in investing and renting out our own villa in Bali.
Leg work. Call people, message everyone. Put yourself out there looking for land. Not everyone is charging stupid prices. If you just search online the prices will be at the top end
Do deep water well, PDAM piped water, trucked water and rain water harvesting. Those are the options. I'm building in Balangan and drilling 80 meter deep
I’m not specifically talking about zoning here. I’m more talking about areas I think will grow. Up to the individual to find appropriately zoned land within those areas
It's best to talk to a professional about how to set it up but generally you don't need the 10billion up front. Just a plan to accumulate it over a period of time. You don't have to hit those targets butnyounjeef the plan.
@@RoryandCaseyI was wondering that too and you actually calculated the ROI based on 250k only. Please check again to avoid confusion. Ps: thanks for your amazing work!
I think this news will erase your 3 suggested places unfortunately; "Bali wants to temporarily halt the construction of new hotels and villas in its southern region, as the Indonesian resort island works to curb overdevelopment and preserve agricultural land amid an influx of tourism. The planned moratorium on such developments will target the Sarbagita region, encompassing Denpasar, Badung, Gianyar, and Tabanan, according to the island’s acting governor Sang Made Mahendra Jaya."
I’ve seen the same news. Possibly yes. I honestly don’t think it’s a bad thing though. Give the community a chance to recover from the level of development and see where they sit in a few years.
@@RoryandCasey The autorities considering at least 10 years long ban on development for south of Bali. If it was a few years would be awesome. We shall see. Meantime looking forward your other insider video about Bali please. Thank you.
Hey Rory. Have you ever looked at buying the land freehold via a PMA? Also do you run a PT PMA. So confusing with all the information out there. Half say do it this way and the other half say you don't need to. Your opinion would be appreciated. Not sure if you speak about it in your book or not, but l find this is a topic that needs to be covered.
Hey mate. I do go over some of it in the book but when it comes to the legal stuff my main advice is always to seek a professional opinion as the rules can change quickly. For an overview though; I do have a PT PMA, if you plan to run a villa as a business such as rentals or short term rentals you absolutely need one. Plenty don’t and just don’t pay taxes and try to fly below the radar but eventually it’ll all fall down if you do it that way. If you’re being told you don’t need one they are doing things outside what is strictly the law. Taxes are also very favourable if you have a pma. We did consider freehold land through our pma but prices are generally substantially higher and if you want to sell it’s more difficult as less people are searching for freehold properties. Legally it’s quite easy with a pma. It’s always going to be a game of which method fits your long term plan.
Foreign individuals and foreign owned companies alike can’t own land outright in Indonesia. It’s the law. When someone (Indonesian) sell freehold to you, the land certificate gets downgraded from SHM to HGB. HGB is basically a longer leasehold up to 80 years that you can only acquire (as a foreign) via a PT PMA. It tends to deliver a higher value for money overtime with a higher upfront cost that should get compensated by the value of the building sitting on top and via the increased price of the leasehold market.
Did you pay your capital gains tax on your Bali property in Australia ? Did you declare it ? As to the Australian Indonesian Tax treaty ? Just asking 😂
We will have to at our next tax return yes. Given we held it for a year we will get the 50% cgt discount but yes we’ll need to pay capital gains which we have budgeted for
It's nearly impossible to find land for the money you're quoting here. If you find cheap land then it won't have the same occupancy. So those 20-30% yield are pretty utopian. It's more 9-12% actually, doesn't matter how you turn it.
First time I see someone making sense in Bali.
These numbers are real, all (Balangan prices, if 5 mins to the beach, they start at 12M/are/yr, with a lot of leg work).
We are doing developments in balangan, melasti, pandawa, etc. Buying the land before all boomed allows us to currently sell our villas at 170k-220k AUD.
Go Rory!
Congratulations! That's awesome!
Hi Rory , I’m so impressed with receiving the comprehensive easy to follow guide on purchasing in Bali . One question since the guide was printed and now with new president they are talking about going ahead with airport up North , does this change your view on areas that will go up next ?
If they ever actually get the airport going then I think there is huge potential in the north. Lovina and Amed are the two that spring to mind for obvious reasons but it’s going to open doors in a lot of other communities. They’ve been talking about that airport for 20 years though so I’ll believe it when planes start landing there.
amazing video honestly, this really makes everything so clear as someone who is looking to get started in bali, would love to work with you in some capacity also.
Thanks for another fantastic and informative video about investing in Bali Rory- congrats on selling your Bingin villa and best of luck on your next investments in Bali!
Thanks so much!
Great content without the fluff. Thank you!
Glad you liked it!
This is fantastic Rory. You are doing the investment community a massive favor! 😊
Glad it could help!
Hi Rory, thank you for making this video and also your amazing book. Buying that was an excellent investment in itself! My question, what are your thoughts on Ubud? Land seems to be quite cheap and quality rental properties in short supply. Grateful for your wisdom and insight on investing in Ubud! Thank you!
I really like Ubud but it's definitely a saturated market. Purely from an investment perspective you won't get as good a return there as you might get elsewhere but if you're doing it to stay yourself I'd say go for it. Ubud is lovely.
Sound advice! Thank you! 🙏
Thank you so much for this! It’s super valuable🙏🏻
Glad it was helpful!
Amazing video Rory thanks. Can you recommend your notary in Bali please?
Absolutely! I’m recommending Indra operating out of Crypto Cafe in sunset road.
Glad to see you back with great information 🙏
Question:
Have you ever been to Sanur? And if so, what do you think about it from an investment perspective?
There’s an international hospital, haven to the small islands and a big shopping mall that attracts lots of people to visit there.
With the great beaches I thought this could also be a great place to build. Would love your opinion on this location.
Thanks!
Thanks for watching!
On a personal level I really really like Sanur. I think it's almost the perfect mix of beach, walkability, bars and restaurants. The new big complex there can only add to what was already there. If I was looking at a place to buy to live it'd be up there. If I was looking to buy as an investment I would wonder if the value is there. It's hard to get land close to the action and the amount of development there means that the returns aren't going to be as high. I've stayed there a few times relatively cheaply.
Still money to be made! Just maybe not as much % return as other places
Hi Rory! Great vid! Really valuable. What are your thoughts about the Nyang Nyang area, as an investment opportunity?
I think Nyang Nyang is another great place as an investment! I love the beach there. It’s probably closer to Uluwatu temple than Uluwatu is so it’s nice and close to the tourist attractions and already has some high end resorts in the area. Can’t go wrong!
@RoryandCasey haha so good to hear, because they are building our villa there right now🤣
Hi, I’ve stumbled across your channel and your videos are amazing. I’m planning on building my first luxury villa as an Indonesian, and you’ve clarified many aspects of doing that for me. I have a question for you. I’ve seen that the government is planning on applying a moratorium in certain regions of Bali. What do you think this means for the real estate market? I believe it’s going to increase the value very much all over the island because they plan on building better infrastructure to welcome even more tourists while protecting the greenery and farms. With this in mind, what are the locations that you think would grow the most in value in the long term?
It's a great question and one that I'm not sure how to answer. Bali often says they will change the law and then just not do it. There's not enough information out there now to know what they are actually planning. For instance even in the last year or so Bali was absolutely banning all foreigners riding bikes and banning everyone from climbing the mountains ..... Neither of these things ended up happening.
I feel that there is too many powerful people invested too heavily in land, construction and development for the moratorium to go ahead without significant push back from a lot of powerful and influential people. If anything I think it will drive the prices of villas down long term because it will destroy investor confidence on the island and the money will stop flowing from investors and developers very very quickly.
@@RoryandCasey I see what you mean. I guess we will find out in a few days, since it’s supposed to start in October. I think either way, I won’t be building in the very popular areas but rather in emerging locations like the ones you’ve mentioned. (Except for Tabanan since you were right that it was going to explode with tourists)
@@yanan7801 yep I think if this goes through then the areas I've listed will increase in value. Candidasa and Amed will probably become more popular. Lovina would be worth looking at too.
@@RoryandCasey Thanks for the tips! 🙏🏼
In my opinion, and I would appreciate your feedback as a prospective investor:
1,. Finding land in Balangan for 6 million seems virtually impossible. I believe the starting point would be at least 7.5 to 8 million, or more likely, significantly higher.
2.- €500 per night for a one-bedroom villa on 1 are? This scenario seems excessively optimistic, to say the least. Is this truly realistic in your view?
3.- An 80% occupancy rate also appears to be an extremely positive scenario. While there isn't much real data on Bali's real estate market, the consensus is that annual occupancy rates typically don't exceed 60-65%, which is already high considering Bali's year-round pleasant weather. Perhaps 80% or more is only achievable during peak seasons and with excellent villa management.
4.- An ROI between 21% and 35%! I wish it were true! However, more realistic ROI figures currently range between 13% and 15%. Could you please share the sources of your information? I would be happy to be proven wrong, as your figures are very positive for me as a potential investor.
Thank you for your input.
Great questions! I’ll answer them as best I can.
1. 6million is still possible with legwork to find it. 7-8 is easier to find off the shelf. Sure I’ve seen the same 15-20million blocks but it’s optimistic by the seller. You can do a lot better than that price wise with some research.
2. Yep 500 euro isn’t possible. The numbers in this are in Aud and for two 1 bedroom units which is in my opinion the most efficient way to split up 2 are of land so when I say $500 I’m saying $250aud per unit per night.
3. 80% is conservative. I have real world experience and we were at 90%+ in Bingin. Just look at Airbnb bookings. Most new villas over the next 30 days are already at 70-80% and they will fill most of those spare dates with last minute bookings. Sure some never reach that but that’s on them and their marketing/management
4. Roi of under 20% is definitely the norm if you buy off plan as a lot of your profit goes to the developer. You wouldn’t get land and two villas for 290k Aud if you bought off plan with a developer it’d be closer to 500k. They need to make a profit. These figures are if you do the legwork yourself finding land and then sourcing contractors etc to build the project. It’s more legwork but the payoff is higher returns.
Hope that helps to answer your questions! My source for a lot of the information is a mix of airdna for rental and occupancy data, collecting and collating data on land prices over the last 6 months and over 2 years experience in investing and renting out our own villa in Bali.
@@RoryandCasey How do you find good deals on land?
Leg work. Call people, message everyone. Put yourself out there looking for land. Not everyone is charging stupid prices. If you just search online the prices will be at the top end
Could you speak a little bit on the problem of water access in Uluwatu? Is this an issue when building there?
Most place have water trucked in. There is PDAM water which is piped in but it’s often empty.
Do deep water well, PDAM piped water, trucked water and rain water harvesting. Those are the options. I'm building in Balangan and drilling 80 meter deep
Thanks Rory. I tried to buy your guide but the link doesn't work, i'll try again in a couple of days. cheers
That's weird. I just checked and it said the same to me too. I'll fix it today. On my way to the Bali airport right now 😅
Should work now!
Should work now!
@@RoryandCasey Thanks Rory. Got it now, looks great.
Which type of zoning is the land you’re discussing in this video?
I’m not specifically talking about zoning here. I’m more talking about areas I think will grow. Up to the individual to find appropriately zoned land within those areas
Are you legally allowed renting out villas on Airbnb as a foreigner?
Providing you have a company set up properly and legally and have all the appropriate permits then yes you are allowed to
So I need a PMA and have to pay taxes on all income then?
Correct.
@@RoryandCaseyso for a PMA, do I need 10 billion rupiah and isn’t that entire amount to be invested in a project, not a small portion of it?
It's best to talk to a professional about how to set it up but generally you don't need the 10billion up front. Just a plan to accumulate it over a period of time. You don't have to hit those targets butnyounjeef the plan.
When you calculate the ROI you are using only the cost of building the villa (250k) and not including the land ?? whats the reason for that ?
Nope I'm including the land as well
@@RoryandCaseyI was wondering that too and you actually calculated the ROI based on 250k only. Please check again to avoid confusion. Ps: thanks for your amazing work!
I think this news will erase your 3 suggested places unfortunately;
"Bali wants to temporarily halt the construction of new hotels and villas in its southern region, as the Indonesian resort island works to curb overdevelopment and preserve agricultural land amid an influx of tourism.
The planned moratorium on such developments will target the Sarbagita region, encompassing Denpasar, Badung, Gianyar, and Tabanan, according to the island’s acting governor Sang Made Mahendra Jaya."
I’ve seen the same news. Possibly yes. I honestly don’t think it’s a bad thing though. Give the community a chance to recover from the level of development and see where they sit in a few years.
@@RoryandCasey The autorities considering at least 10 years long ban on development for south of Bali. If it was a few years would be awesome. We shall see.
Meantime looking forward your other insider video about Bali please. Thank you.
Hey Rory.
Have you ever looked at buying the land freehold via a PMA? Also do you run a PT PMA. So confusing with all the information out there. Half say do it this way and the other half say you don't need to. Your opinion would be appreciated. Not sure if you speak about it in your book or not, but l find this is a topic that needs to be covered.
Hey mate. I do go over some of it in the book but when it comes to the legal stuff my main advice is always to seek a professional opinion as the rules can change quickly. For an overview though;
I do have a PT PMA, if you plan to run a villa as a business such as rentals or short term rentals you absolutely need one. Plenty don’t and just don’t pay taxes and try to fly below the radar but eventually it’ll all fall down if you do it that way. If you’re being told you don’t need one they are doing things outside what is strictly the law. Taxes are also very favourable if you have a pma.
We did consider freehold land through our pma but prices are generally substantially higher and if you want to sell it’s more difficult as less people are searching for freehold properties. Legally it’s quite easy with a pma. It’s always going to be a game of which method fits your long term plan.
@@RoryandCasey Why not buy land freehold, and then "sell" it leasehold? To build major intergenerational wealth...
Definitely can do that for sure! For me it's not a factor. I don't have or plan on having children.
Foreign individuals and foreign owned companies alike can’t own land outright in Indonesia.
It’s the law.
When someone (Indonesian) sell freehold to you, the land certificate gets downgraded from SHM to HGB.
HGB is basically a longer leasehold up to 80 years that you can only acquire (as a foreign) via a PT PMA.
It tends to deliver a higher value for money overtime with a higher upfront cost that should get compensated by the value of the building sitting on top and via the increased price of the leasehold market.
Did you pay your capital gains tax on your Bali property in Australia ? Did you declare it ? As to the Australian Indonesian Tax treaty ? Just asking 😂
We will have to at our next tax return yes. Given we held it for a year we will get the 50% cgt discount but yes we’ll need to pay capital gains which we have budgeted for
@@RoryandCasey Excellent.
Melasti Beach has to be hands down my least desirable beach in all of Bali.
Why
It's nearly impossible to find land for the money you're quoting here. If you find cheap land then it won't have the same occupancy. So those 20-30% yield are pretty utopian. It's more 9-12% actually, doesn't matter how you turn it.
And yet it is entirely possible with a bit more ground work.