Add to the fact that traffic congestion has now reached diabolical unprecedented levels and tourists as well as expats are now considering Thailand a better option then Bali. Dude is 100 percent tripping with his rental assumptions, good luck to him but he will find out very soon he ain’t making that investment back in 2 short years like he thinks he will
You don't take into consideration into your ROI the cost after for a management company to rent the villa + expenses and taxes, so reduce 40% approximately (just for people to now ;) )
I think the best Bali Villa build video in RUclips, but I realized that you stopped uploading for a while. Hope you can keep up the good work. Also, very curious how to deal with the legal limitations of a foreigner to buy a land through a limited company. Hope to see the part 2. Thanks brother!
Brother, if you are going to do a whole series on building a villa in Bali, I'm subscribed. Also wishing you all the providence in the world on your current build.
Foreigners are not permitted to rent properties on Airbnb here. Additionally, an 80% occupancy rate is quite high; a more realistic figure would be around 60%, excluding management costs, which are approximately 20%. It would likely take about five years to fully pay off the property, and that’s an optimistic estimate.
Good video with lots of information. Do you mind sharing what architect, contractor and manager you used ? I’m currently in Bali living in Canggu, been here for 6 months now. Looking to move up to Uluwatu next year and looking at land. Not much available at the moment for freehold though. Also would you suggest freehold is a better option ? Thanks.
Important to know in Indonesia: Foreigner are not allowed to do short term rentals unless you have a PT pma classified as hotel with 10 billion IDR plus capital.
Yes, I will cover all of this in an upcoming video. The importance of properly setting up your PTPMA, verifying zoning for commercial use, setting up Kitas under the PTPMA, and everything else required to correctly build in Bali 👍🏼
A PT PMA cannot do short term rentals for a villa as it would need a villa rental license, KBLI 55193, which are reserved for cooperatives or micro, small and medium Indonesian businesses. Since all PT PMA businesses are classified as large businesses they have to contract out the short term villa rental management to an Indonesian property management company - which will charge between 10 and 30%. A PT PMA can get a hotel business classification but it must be for a star rated hotel with a building area of over 4,000 square metres.
Is it possible you can post the companies you used from architects, to building contractors and realtors for acquiring land? I’m also looking into developing for personal and rental….
This video doesn't take in to account almost any of the realities of building/renting a property in general. Taxes, maintenance, fees, insurance, etc nor are they being realistic with an 80-90% OR. Wish you the best of luck and you'll make money for sure, but the reality is you'll make a 5%-9% return on your investment per year, not a 50% ROI
You obviously do not know the real estate market in Bali 😅 Your assumptions are correct for a typical USA market, using standard long-term rental strategies. However, Bali's market, and building cheap, renting high on Airbnb is far from typical haha
@@JulianAlexander rubbish mate I have lived in Bali for over 30years built for times n a factory n the comment made u don't include a lot of costs is true Seems to be a lot of illegal renting going on in Bali now especially if Facebook UI need to be registered n have Indonesia tax number n licence to rent property u get caught yr headed for big problems including yr villa possibly being destroyed Also BnB the government is rite on that lurk as well u need the above
Dreams are nice... but what about Indonesian rental tax, income tax, Airbnb fee, property management fee, villa marketing fee, villa and pool maintenance, electricity, insurance, furnitures, etc, etc And the list goes on and on! If it was so simple we would all own a Bali villa by now. Good luck for your project anyway.
Quite correct; this video totally ignores the complex legal and business requirements that are required to do what they are proposing and the extremely high risks involved. A foreign individual cannot legally 'buy' land and build a villa on it in Indonesia (it's just a long term lease in reality with a theoretical level of Indonesian government protection but good luck with that). It can only be done by setting up a limited liability foreign investment company - a PT PMA - to lease the land for a maximum of 30 years in the first instance, and the lease needs to be under HGB/Right to Build title for a villa to be built on it (the total investment must be at least IDR 10 billion). Note that this method cannot be used to build a villa for personal use as it's for investment purposes only - there is no legal way around this despite what all of the 'smoke and mirrors' agents with their nominee agreements etc. would have us believe.
@@Kembali-1607mate I wish I had a dollar every time I've had to tell newbie's year after year the exact same thing u have just told them in ur post. And the greed is out of control now there not coming to live the Bali culture or mix with the balinease way . It's all about stripping the money out of Bali And the community's are waking up and fed up with what's going on
have to keep in mind whats your NET RETURN? as in after tax, property management fees, cleaning and maintenance etc. Quality video though my friend! keep it up
Hi Julian,Great video.Thanku for sharing. Question---Based of your excellent track record of perfectionism, Would you share all your contacts from the making of your villa in a video or by email?Id love to connect and work with them.Thanku Jennell.
Awesome content, from personal experience I'd reckon you should do a bit more in depth financial analisis, the napkin math always looks good on paper and then you go 100k over budget like you mentioned.
Land cost for how long tho? Everyone knows that it's leasehold, so why are you not saying as much. Also, if you do build that for 250k I would be worried, the cost of construction these days means corners are being cut at those figures.
This is general shallow info on building a house anywhere .. not in Bali .. not quite correct also .. the procedure of where to look for land with a good price in Bali, how to do due dilligence in Bali etc would be usefull, this is not ..
Mate I subscribed to your channel so I can follow your Villa build journey. Then I realized that you haven't uploaded a single video since so I unsubscribed. I hope you are way better in following through with your online business then you are on your promise to educate us on building in Bali. Very disappointing. I am married to an Indonesian girl and we are planing to buy land and build in Bali just like you. Oh well thanks for the one and only video anyway. It was clear and precise which was helpful enough. Pity.
@@robink6744 they seem to re-do things over and over….e.g they will spend time rendering a wall then the plumber/Electrician will cut into the wall to run the pipes or power then they render over again……painful to watch. many walls and doors are not plumb and level.. just basic things that does my head in.
@@mattbeaver8297 Thanks very much, Matt. I was in Bali for a month recently and did some research on potentially building my own villa in Bali as investment to rent out on AirBnB, having discussed this with a friend who has done this successfully across nine villas as a foreigner resident in Bali. There's been encouraging and cautioning advice on this. I suppose what's key is finding a reputable, trusted and referenced contractor and engaging an independent project manager. All the best for your villa - hopefully the headaches are gone and you and your wife can enjoy your own home under the Balinese sun : ) .
@@mattbeaver8297 No drain traps, no grease traps, no grounding for motorized equipment like fridge/washing machines, rise damp issues, windows/doors homemade using poorly dried wood, huge gaps around doors, foundation settlements (build on rice field), etc. This in a place with sky high land prices of USD 150,000 for a small villa (freehold).
@robink6744 It's not all that bad, take your time choosing your builder. Someone who is very experienced, visit their buildings, talk to the owners. Tour building sites. Choose too quickly and yes, there are many who say they are professional, but their work will speak for itself. A good architect will recommend a preferred builder. If the architect is detailed, most likely so will be their preferred builder
![Stromae, Pomme - “Ma Meilleure Ennemie” (from Arcane Season 2) [Official Visualizer]](http://i.ytimg.com/vi/1F3OGIFnW1k/mqdefault.jpg)
80% occupancy is optimistic to say the least , the rate that new and better villas are coming on line is unprecedented .
Add to the fact that traffic congestion has now reached diabolical unprecedented levels and tourists as well as expats are now considering Thailand a better option then Bali. Dude is 100 percent tripping with his rental assumptions, good luck to him but he will find out very soon he ain’t making that investment back in 2 short years like he thinks he will
80% occupancy in canggu is totally possible
@@agnetubeagne5449You own a villa in Bali with a 80% occupancy rate?
@@audreyrose825 if u adjust the prices and are willing to deal with changing the prices based on occupancy it’s totally possible
80% occupancy is definitely possible in canggu i have friends that have been between 90-95% booked last since Bali opened back up
You don't take into consideration into your ROI the cost after for a management company to rent the villa + expenses and taxes, so reduce 40% approximately (just for people to now ;) )
I think the best Bali Villa build video in RUclips, but I realized that you stopped uploading for a while. Hope you can keep up the good work. Also, very curious how to deal with the legal limitations of a foreigner to buy a land through a limited company. Hope to see the part 2.
Thanks brother!
Brother, if you are going to do a whole series on building a villa in Bali, I'm subscribed. Also wishing you all the providence in the world on your current build.
Foreigners are not permitted to rent properties on Airbnb here. Additionally, an 80% occupancy rate is quite high; a more realistic figure would be around 60%, excluding management costs, which are approximately 20%. It would likely take about five years to fully pay off the property, and that’s an optimistic estimate.
Wow! I love the design of your villa, especially the green open space next to the pool ❤❤❤
So very helpful this video. Great content. Keep sharing. And don't hesitate to name companies, good or bad.
You should use airdna for analyse. Also you forgot to calculate service company payments.
340 Juta/are (100m2) land lease for Bingin? The Balinese are crafty.
Mate this is so clear and well thought through always as Julian! Love you vids bro!
Beuatiful villa! In my experience, it's very hard to find a good conscientious builder. May I ask who your builder is?
Good video with lots of information. Do you mind sharing what architect, contractor and manager you used ? I’m currently in Bali living in Canggu, been here for 6 months now. Looking to move up to Uluwatu next year and looking at land. Not much available at the moment for freehold though. Also would you suggest freehold is a better option ?
Thanks.
Important to know in Indonesia:
Foreigner are not allowed to do short term rentals unless you have a PT pma classified as hotel with 10 billion IDR plus capital.
Yes, I will cover all of this in an upcoming video. The importance of properly setting up your PTPMA, verifying zoning for commercial use, setting up Kitas under the PTPMA, and everything else required to correctly build in Bali 👍🏼
A PT PMA cannot do short term rentals for a villa as it would need a villa rental license, KBLI 55193, which are reserved for cooperatives or micro, small and medium Indonesian businesses. Since all PT PMA businesses are classified as large businesses they have to contract out the short term villa rental management to an Indonesian property management company - which will charge between 10 and 30%. A PT PMA can get a hotel business classification but it must be for a star rated hotel with a building area of over 4,000 square metres.
Question per sqmtre to build also did you buy the land or lease 500 sqmtr seems cheap at $110
Is it possible you can post the companies you used from architects, to building contractors and realtors for acquiring land?
I’m also looking into developing for personal and rental….
I am genuine Balinese and I practice as an Architect with long experience. May be I coud help
Very nice design, definitely one that maximizes all the space. How much land are you working with if you don’t mind me asking?
Oh this is gold 👏🏽
This video doesn't take in to account almost any of the realities of building/renting a property in general. Taxes, maintenance, fees, insurance, etc nor are they being realistic with an 80-90% OR. Wish you the best of luck and you'll make money for sure, but the reality is you'll make a 5%-9% return on your investment per year, not a 50% ROI
You obviously do not know the real estate market in Bali 😅 Your assumptions are correct for a typical USA market, using standard long-term rental strategies. However, Bali's market, and building cheap, renting high on Airbnb is far from typical haha
Look another western design that has no resemblance to Bali aritechure at all
N the rape n pillage of Bali continues .
"50% ROI" RUclips clickbait special
@@JulianAlexander rubbish mate I have lived in Bali for over 30years built for times n a factory n the comment made u don't include a lot of costs is true
Seems to be a lot of illegal renting going on in Bali now especially if Facebook UI need to be registered n have Indonesia tax number n licence to rent property u get caught yr headed for big problems including yr villa possibly being destroyed
Also BnB the government is rite on that lurk as well u need the above
Very informatiove video thanks.
How are you verifying the occupany rates?? Obviously without this information the ROI will be much much lower.
Dreams are nice... but what about Indonesian rental tax, income tax, Airbnb fee, property management fee, villa marketing fee, villa and pool maintenance, electricity, insurance, furnitures, etc, etc And the list goes on and on! If it was so simple we would all own a Bali villa by now. Good luck for your project anyway.
Quite correct; this video totally ignores the complex legal and business requirements that are required to do what they are proposing and the extremely high risks involved. A foreign individual cannot legally 'buy' land and build a villa on it in Indonesia (it's just a long term lease in reality with a theoretical level of Indonesian government protection but good luck with that). It can only be done by setting up a limited liability foreign investment company - a PT PMA - to lease the land for a maximum of 30 years in the first instance, and the lease needs to be under HGB/Right to Build title for a villa to be built on it (the total investment must be at least IDR 10 billion). Note that this method cannot be used to build a villa for personal use as it's for investment purposes only - there is no legal way around this despite what all of the 'smoke and mirrors' agents with their nominee agreements etc. would have us believe.
@@Kembali-1607mate I wish I had a dollar every time I've had to tell newbie's year after year the exact same thing u have just told them in ur post.
And the greed is out of control now there not coming to live the Bali culture or mix with the balinease way .
It's all about stripping the money out of Bali
And the community's are waking up and fed up with what's going on
Problem is there's no financing for foreigners to build a villa in bali. You need the full amount in cash.
have to keep in mind whats your NET RETURN? as in after tax, property management fees, cleaning and maintenance etc.
Quality video though my friend! keep it up
This is great. Curious though. Isn't renting on Airbnb made illegal recently in Bali?
Hi Julian,Great video.Thanku for sharing.
Question---Based of your excellent track record of perfectionism, Would you share all your contacts from the making of your villa in a video or by email?Id love to connect and work with them.Thanku Jennell.
any chance you can share the project manager details pal? we are also building in Bali an in need.
Awesome content, from personal experience I'd reckon you should do a bit more in depth financial analisis, the napkin math always looks good on paper and then you go 100k over budget like you mentioned.
where’s the design video? 👀
Hey did you get a good contractor?
Land cost for how long tho? Everyone knows that it's leasehold, so why are you not saying as much. Also, if you do build that for 250k I would be worried, the cost of construction these days means corners are being cut at those figures.
It would be nice for you to share your contractors info
This is general shallow info on building a house anywhere .. not in Bali .. not quite correct also .. the procedure of where to look for land with a good price in Bali, how to do due dilligence in Bali etc would be usefull, this is not ..
Mate I subscribed to your channel so I can follow your Villa build journey. Then I realized that you haven't uploaded a single video since so I unsubscribed. I hope you are way better in following through with your online business then you are on your promise to educate us on building in Bali. Very disappointing. I am married to an Indonesian girl and we are planing to buy land and build in Bali just like you. Oh well thanks for the one and only video anyway. It was clear and precise which was helpful enough. Pity.
Ive built in Bali as my wife is Indonesian and ITS A NIGHTMARE……I would not recommend it.
May I ask what made it a nightmare?
@@robink6744 they seem to re-do things over and over….e.g they will spend time rendering a wall then the plumber/Electrician will cut into the wall to run the pipes or power then they render over again……painful to watch. many walls and doors are not plumb and level.. just basic things that does my head in.
@@mattbeaver8297 Thanks very much, Matt. I was in Bali for a month recently and did some research on potentially building my own villa in Bali as investment to rent out on AirBnB, having discussed this with a friend who has done this successfully across nine villas as a foreigner resident in Bali. There's been encouraging and cautioning advice on this. I suppose what's key is finding a reputable, trusted and referenced contractor and engaging an independent project manager. All the best for your villa - hopefully the headaches are gone and you and your wife can enjoy your own home under the Balinese sun : ) .
@@mattbeaver8297 No drain traps, no grease traps, no grounding for motorized equipment like fridge/washing machines, rise damp issues, windows/doors homemade using poorly dried wood, huge gaps around doors, foundation settlements (build on rice field), etc. This in a place with sky high land prices of USD 150,000 for a small villa (freehold).
@robink6744
It's not all that bad, take your time choosing your builder.
Someone who is very experienced, visit their buildings, talk to the owners. Tour building sites. Choose too quickly and yes, there are many who say they are professional, but their work will speak for itself. A good architect will recommend a preferred builder. If the architect is detailed, most likely so will be their preferred builder
But you are not allowed to rent it out as a foreigner. It's illegal. Why not respect local Indonesia people and laws.
To rent out, you can apply for the permit to state the use of the building. If I recall their is a fee to pay
I'm guessing your real contribution to the design process was less than 5%. Nightmare client for sure.
you are not consistent.. checked your channel and wanted to follow but yeah no thanks...