I don’t know about you, but every time I open the news or look at my investment portfolio, I do so with a little trepidation. I’m a lover not a fighter so hate to see all the conflict in the world and with that the uncertainty. The thought of World War 3 or nuclear is frightening especially given some of the heads of governments, so in that, could it be time to diversify or build a portfolio of high yield assets, or heaven forbid, but in global war move to a beautiful island destination. Our uncertain world is more uncertain than ever, but not to scaremonger, but it could be worth delving deeper into property investment in a holiday destination with a 12 month calendar (Bali and the rest of Indonesia) where the yields are the highest in the world. Squeaky bum time with geopolitical concerns and therefore the stock market, I think so.
Welcome again to my blog where in this instance a few opportunities that shine above all others. For this “Pete’s property picks’ we look at a completed project where 3 x 3 bed units are available for a super reduced deal for all 3 giving 13%+ yields in long term rents, a huge 1150m2 villa where the fire-sale is almost at land price and the final one that’s just a super deal, modern tropical design, freehold or 100 year lease, a bargain price and super well connected for the airport – all opportunities have excellent conservative ROI.
PETE’S PROPERTY PICKS
To give some good reasons why you may want to take notice, I’ve lived in SE Asia for 25 years. I first bought land in Bali in 2004, building in 2005 and subsequently launched my first development of 15 villas in 2008. My career background is largely investment-related (then property) as far back as the late 90s 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 Master’s in International Business Management, hence also look at property opportunities from an analytical perspective. I do live and breath the market every day, hence do know a thing or two.
THE OPPORTUNITIES
Firstly, 3 have 3 villas in Padonan near Canggu by a Dutch builder who excels in high quality small developments as a side to his other businesses. Super high quality and priced individually between US$240k and US$270k, all three can be bought at a bargain price of US$600k. In my opinion, not so much for daily rents, but long term you would get IDR40m each per month (US$29,280 annually) giving yields of 14.64%.
The second, that I know very well as a neighbor is a huge villa at 1150m2 on 850m2 of land. It was built 19 years ago and is an extremely solid structure. Protected views, on the hill and very quite. More traditional in design (as were all at that time) the villa has been reduced from 19bn to 15bn to 11bn (so US671k). Highly comparable rentals (ask me) average US$400 per night @65% occupancy over the year hence a conservative income of US$93,600 or 13.94% but its freehold so you have the appreciation also. It has been said that if another IDR1 billion (US$61k) you could really upgrade the villa and charge closer to US$800 per night.
Third and finally this development ticks many boxes. Design wise, this appeals as it’s modern but also tropical with Indonesian influences. So much property for money as well, while most new developments are built on around 200m2, this is built on a generous 600m2. Given proximity to many 5 star resorts and branded residences, these 13 villas are bargains at only IDR6.5b (US$397k) and are available freehold or 100 year lease meaning growth as well as conservative projected yield of 13.5%.
To find out more about these opportunities, or to simply get a better understanding of investing in Bali etc, please contact myself Harcourts Head of Sales (me) Peter Taylor on +62 821 47204580 or email [email protected]
Best Wishes,
Peter Taylor
Head of Sales
Harcourts Purba Bali
