The Roseburrys were set on a two-week holiday in Bali before the pandemic broke and shook the world.
Quickly after they have arrived in Bali back in March, 2020, the airports were shut down and establishments were closed until further notice.
Fast-forward to three months later, and now they find themselves in love and immersed with the nature and tranquility of the island and staying in a Luxury Villa in this tropical paradise of Bali.
Originally from the USA, the Roseburrys have lived in different exotic islands all over Asia, but has found themselves enamored by Bali’s many opportunities and offerings. From their original plan of a short holiday, the family is now relocating and settling in Bali with a long-term vision and plan.
From the nature, beaches, food, and culture, to the friendliness of the people and the amount of outdoor activities that the island has to offer, Bali has made a mark on the Roseburrys and to the many people who remained on the island.
And now, it seems like the island has carried on and adapted to the “new normal,” despite a slow-down of the tourism and hospitality industries. Places have opened up, nature remains abundant in the 5,780 square kilometer land, and the island learned a more conscious approach when it comes to hospitality, tourism, entertainment, and the food and beverage industries.
With the changes happening not in Bali but worldwide, the real estate industry on the island has found itself a new opportunity, considering that many cases like the Roseburrys are emerging.
Many individuals have found themselves “stuck” on the island when international flights were discontinued and limited, and somehow, after months of exploration paired with the opportunity of living on the island, short-term holiday seekers have turned into long-term residents of the island.
Now, the Roseburrys are looking for a long-term villa lease in Bali, much like many clients of agents like Harcourts Purba.
“We’ve increased in number of clients who are looking into long-term rentals, Before the pandemic, Harcourts Purba were seeing a swing towards commercial properties in Canggu and South west Bali – Bingin Padang Padang Uluwatu now the focus and demand for long-term villa rentals has also grown steadily says Siti Purba, principal of the leading real estate company in Bali, Harcourts Purba.
Long-term Bali rentals in relation to Covid
Due to the pandemic, there has been a dramatic slowdown in the tourism and hospitality industry. The economy of the island has suffered, but there has been a positive sentiment on the island—the beaches are much cleaner, the traffic has been more manageable, and exploring the island has become easier and affordable.
Despite the economic downturn in Bali, most businesses have already re-opened, and new business opportunities are opening up. People all over the world and those who are on the island have had time to reflect, and somehow, people have become more creative and courageous and pursuing their passion and business ideas, including relocation in paradise and renting a house in Bali long-term.
There has also been a more affordable access to luxury, from high-end restaurants and hotels offering affordable deals and price-drops to attract more guests.
When working with an agent, what’s important is to know your legal (and even moral) obligations when doing rental investments on the island. Long-term leasehold does include legal taxes, and community compensation that most agents won’t tell you upfront. Reputable real estate agencies like Harcourts Purba have legal consultants who work together with clients, ensuring that local laws and regulations are followed.
Besides the fact that there is an increase in migration and relocation to the island, some benefits of long-term rental include:
Harcourts Purba contracts for long term rentals usually provide an exit clause where buy the tenants
They also have a 30 to 90 day exit clause whereby when your villa sells the tenant have a time period to exit,
An occupied villa/ home has a lot better chance to sell than an empty property
- Consistent income: Long-term rentals ensure you will always have someone in your property paying rent. This means that you won’t have to work with high and low seasons, and you remain to be non-reliant on the immediate market.
- Less advertising: Advertising and marketing can consume a lot of resource. With long-term rentals, this is only done when the tenant leaves. Having a long-term villa rental business is easier to manage when it comes to promotions and in getting clients.
- No utility payments: In deals for long-term rentals in Bali, tenants take on the responsibility of electricity, water and other utility fees. This set-up is not the same as short-term rentals, wherein if the guest decides to have the AC on 24/7, the electricity bill is on you.
Bali To Re-Open on 9/11/2020 (Well, that is the plan)
As ironic as it seems, the Bali government has picked the date 9/11 (September 11) to open its doors for international tourism. The local government announced its plan to open the island to foreign visitors by signing a ‘New Era of Life Order Protocol’ decree which is a three-step plan to regulate the reopening of Bali’s economy.
By July 9, the first stage allows some businesses to operate, including: health services, government offices, trade and finance, customs and religion, transportation, traditional and local markets, agriculture, restaurants and stalls, construction, and many others, however still adhering to health protocols, and noting that tourism activity will not open until the second phase.
The second phase comes on 31st of July, with Bali reopening to all domestic tourists. Indonesian tourists will be able to travel to Bali for tourism. At this stage, all tourism activities, tours and attractions will reopen.
The third and last stage will be on the 11th of September, carrying out a broad spectrum of tourism activities including reopening Bali to international tourists.
With this in mind, now is the time to consider rental property investments, as things are going back to business sooner that you know.
If you are considering relocating or investing in Bali, speak with one of the Harcourts Purba agents to see what your options are and find the best investment that suits your needs.\
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