It is a dream for many to own a villa in Bali. First of all as a potential residence and secondly as a potential source of profit. However, as this property investment opportunity beckons, there are several important issues you should bear in mind. Here are 10 important considerations before buying a villa in Bali for investment:
1. Solid Budget
- Property Price: Villa prices in Bali vary greatly depending on location, size, facilities, and condition. Determine your maximum budget.
- Additional Costs: Other associated costs to consider include purchase taxes, notary fees, and renovation costs if necessary; monthly running costs, including land and building taxes, villa maintenance, etc.
- Funding Sources: Be sure to have clear funding avenues, through other property sold, contracts from banks, and other related investments.
2. Investment Goals
- Short or Long Term: Do you wish to undertake daily or monthly leasing to make a quick return, or undertake long-term investment with a view of property values that are expected to rise from time to time?
- Level of Involvement: Would you personally be the one to deal with and look after the villa or do you prefer to leave it in the hands of a property management company?
3. Location
- Tourism Potential: Ensure the premises are situated in a busy center, by beautiful beaches or famous scenic area tourist attractions.
- Accessibility: Consider access to the villa, whether it is easily accessible by public transportation or private vehicles.
- Infrastructure Development: Learn the plans of telecommunication companies, whether they are already constructing new roads, airports, or shopping centers.
4. Rental Potential
- Market Demand: Find the market need for the villas in the area you want to conduct your business. This is particularly important for areas that receive tourists throughout the year, especially during peak and off-peak periods.
- Rental Rates: Compare rental rates for similar villas to determine competitive prices.
- Rental Platforms: Learn about popular online rental platforms in Bali and how to register and manage your property on these platforms.
5. Villa Facilities
- Swimming Pool: Having a swimming pool within the compound is quite preferable, especially for tourists.
- Kitchen: Make sure the kitchen is equipped with complete cooking utensils.
- Living Room: One additional benefit, a wide corridor and comfortable living room will bring additional profit in case of villa sale or rent.
- Connectivity: Make sure that you get proper connectivity to the internet in the villa.
6. Permits
- Building Permit: Ensure the villa has a complete and valid building permit (IMB).
- Land and Building Tax: Make a confirmation that there is always payment for the land and building tax for the villa.
- Rental Permit: If you plan to rent out the villa, make sure you have the necessary permits.
7. Property Management
- Property Agent: If you don’t want to manage the villa yourself, you can use the services of a property agent.
- Cleaners: Hire cleaning services to maintain the cleanliness of the villa.
- Repairs: Prepare a budget for repairs and routine maintenance of the villa.
8. Legality
- Land Certificate: This should be done to confirm that the land certificate on the villa is valid and has no loopholes.
- Sale and Purchase Agreement (PPJB): Pay special attention to the sale and purchase agreement (PPJB) before making its signature.
- Notary Consultation: Consult with an experienced notary to ensure legal aspects are fulfilled.
9. Insurance
- Property Insurance: Protect your investment by purchasing comprehensive property insurance.
- Liability Insurance: Protect yourself from lawsuits by purchasing liability insurance.
10. Bali Property Market Trends
- Tourism Development: Analyze the trends of the tourism industry in Bali.
- Government Regulations: Monitor shifting in government policies about property business.
- Investment Trends: Learn about current property investment trends, such as investor interest in certain types of property or locations.
Conclusion
Purchasing a villa is one of the lucrative investments one can make in Bali but there is much to consider. With all the factors mentioned above, one can be able to invest wisely and avoid incidents that have risks attached to them. For more specific advice it is advised to seek professional help from property agents or financial consultants.
investment, buying a villa in Bali, property investment tips