I’ve decided to start a regular newsletter as investment opportunities pop up or what I believe are exceptional extraordinary opportunities in the market.
To give some good reason why you may want to take notice is I’ve lived in SE Asia for 24 years. I first bought land in Bali in 2004 and first developed in 2008. My career background is largely investment related (then property) as far back as the late 90’s as a commodity broker. Investments and property perfectly intertwine in Bali, where margins for developers are excellent and ROI for investors exceptional. I also have a Masters in International Business Management, hence also look at property opportunities from an analytical perspective.
Essentially, with 500+ listings all with their own merits. I’ll share with you the one where I would invest my money if I had the spare cash available.
The first one that has gone under the radar for most is this stunning villa in the ever popular Canggu, a stunning oasis and one of the most breathtaking villas in Bali.
If this was a freehold villa, it would be US$4+ million, however as a leasehold villa with 14 years left (+5 +25 years) it comes at a knockdown price. A year ago this was priced at US$1.4 million. It was then dropped to US$1.1 million pre Christmas and is now available for the (bargain of the century) price of US$850k (with maybe some more wiggle room).
This isn’t just 14 years though, it can be extended a further 5 + 25 years. People often misunderstand how this works but it is as follows. Between having 10 and 11 years left, you would have the option to extend a further 5 years. The cost is the price per are (100m2) times the current land price (valuation by 3 parties) multiplied by the number of years (5 in this case. So if it was now it would be around 25m x 19 (are) x 5 = IDR2.375b (US$152k). In another 5 years you could then add a further 25 years to the lease taking the lease to 35 years.
If say you used the villa for 10 years and decided to sell, there would still be 25 years left (normal lease term in Bali), you will have enjoyed the villa and revenue then should be able to sell for a healthy profit. If you also wanted to consider the yield, rental rates are as follows: Low US$800, High US$1000 and Peak US$1350. Canggu is the number 1 tourist area in Bali with occupancy over 87%, hence please do the math (note labor cost is very low in Bali). Even at 75% occupancy, returns are exceptional.
Link: https://harcourtspurbabali.com/property/beautiful-batu-bolong-villa-on-generous-1900-sqm-land/
To tell you about this beautiful villa, it’s located in the most vibrant and hippest part of Bali – Canggu. The villa is a short distance to the popular surf beaches of Batu Bolong and Echo Beach with its fabulous array of excellent dining, boutiques, surf schools and numerous beach bars and beach clubs.
The west facing property was built in 2013 and has a generous land size of 1900 sqm. It has a total of 6 well-appointed bedrooms comprising of 5 luxury, over-sized suites with indoor and outdoor bathrooms and a two storey Suite with its own private lounge/media room that is ideal for children or young adults.
The main living space features an open concept living and dining area along with a fully equipped kitchen. Centred around its 18m x 6m pool with its double sun lounges, the villa offers many wonderful relaxation spaces. One of the highlights of this elegant villa is its 2-storey outdoor pavilion with BBQ where you can enjoy the vistas of the surrounding neighbourhood. The villa also has a gym, spa room and parking for 2 cars.
If you are interested in this villa or have any questions, please call or message me on +62 821 4720 4580.
Kind Regards,
Peter
P.S. Please note that the photos really don’t do this villa justice
