According to the Scottish-American industrialist Andrew Carnegie, “90 percent of millionaires become so through owning real estate.” There is no doubt that with the proper knowledge and guidance, real estate investment can lead to profit and security for home owners.
For those who are thinking of investing in real estate, there are many opportunities that await you. As the old adage go, it’s all about “location, location, location” and this rings more truth as you set out to purchase your property in Bali, be it at beachfront, cliff side, rice fields, volcanic view locations, or prime key areas right at the heart of Bali’s tourist spots is preferred—the best thing about this tropical paradise are the myriads of options when it comes to location.
Many individuals are able to afford a home in Bali for a fraction of a cost compared to other countries. With a steady stream of income, good financial credit and enough assets to back you up, investing in real estate is not as difficult as it seems. All you have to do is talk to an agent and figure out your set budget.
And of course, with the proper guidance from a reputable real estate agency in Bali who is trusted and who will ask you the right questions to tailor to your needs, owning a property in Bali is an easy yet adventurous journey.
Find out what opportunities await your paradise property in Bali:
- Steady stream of Income. For the past 15 to 20 years, there has been an increase of term rentals and holiday rentals on the island. Instead of booking hotels for a holiday or long-term stay, a private villa makes a better option for travelers in Bali. Property owners have enjoyed the benefits of long-term rentals and holiday rentals for the last 15 to 20 years.
- Long Term Financial security and Investment. Based on historical land value in Bali, it is a fact that there is a steady growth of land value in all areas of Bali for the last 20 years. Land in Bali continues to appreciate and grow steadily in value. Be sure to ask your agent for a clear understanding of historical land values and analyze where the next “boom” of Bali investment opportunity awaits. For information on potential areas for property investment in Bali, click here (https://harcourtspurbabali.com/old/hot-areas-to-buy-a-villa-in-bali/)
- Management Companies and Tenants cover expenses. One of the main worries for rental property investors would be management, as globe-trotting travelers and businessmen have no time to manage bookings, repairs, and all the nuisance of property ownership. Not to fret, as one of the factors that have encouraged property investment in Bali over the last 10 years is the ROI that can be generated under a professional management company who can take care of your property. Otherwise, a long-term rental client will take care of repairs and maintenance of the property.
- General Appreciation of Real Estate. As mentioned by great thinkers such as Andrew Carnegie and Franklin Roosevelt, real estate investment is almost sure to make your wealth grow—that is, if you manage your property well and you have the necessary guidance from your agent. Ask your real estate agent for the historical land chart values for the last 10 years (Surely, you will be pleasantly surprised).
Whether you already are in real estate or just beginning, you know that real estate is NOT a short-term investment plan. On the flipside, the main opportunity from investing in real estate include appreciation of capital assets over time. Which means, the land and property you can own now, is worth way more 10 years from today, which is why investors commit to real estate long-term.
- You are your own boss. Forget about your 9 to 5 job! You can start off small with one property, and build your investments as you grow your business. There are many agents and management companies who will help to make your property gain traction and earn profits. The important point is you make your own decisions on your real estate investment strategies.
Answer these questions before you make any real estate investment in Bali
When it comes to investing your wealth, it is important to make calculated decisions. Knowing the right questions to ask yourself and your agent makes all the difference in your financial security. To make your wealth and efforts worthwhile, make sure you ask these questions before you make a decision.
- What do you want to get out of your investment? Ask yourself, “do I need to get maximum return out of my investment or is it a lifestyle choice? Do I need my investment to satisfy my personal requirements first before I think of the financial benefits, or is it a combination of both?”
- Location, location, location. What is your preferred location? Does it match my personal requirements? Are you a sports enthusiast, a surfer, an entrepreneur or moving to Bali as a young family? If so, a young family with children would need to look for a place with close proximity to schools, sporting facilities, and shopping centers. Newly weds can go to more adventurous places, rental property investors can find more touristic areas. Again, there’s always a place for everyone’s needs.
- Would you want an ownership/title that is Freehold or Leasehold? What are the pros and cons of choosing one of both? And am I eligible to purchase freehold or leasehold? What do I need to do to procure a leasehold or freehold property? Owning property entails a lot of requirements, documents and legal compliance. Make sure you know what you are buying.
- Another point to know would be legal payments. Besides the property cost, you need to know what are the tax implications of your purchase. Ask, “does my investment allow me any tax exemption?” In finding out tax laws, it is best to consult to a professional who has years of experience in real estate. Remember that this is your wealth, and you need to know your responsibilities before making any commitments.
- Are there financing services available for property investment in Bali? Are there hidden “closing” costs associated in the purchase or re-sale of my investment in Indonesia? This is another technical question to ask an expert, to make sure that you have the right amount of investment, including other processing fees, tax fees or any other costs on top of the purchase price.
As you go through your journey of real estate investment in Bali, it is important to work with a reputable Real Estate agency. It is imperative that your agent is equipped with sound knowledge of the historical land values over the last 10 years, and an agent who knows emerging areas on the island. Agents will also have good understanding of your legal responsibility, and will have legal consultants that they can refer to you.
When answering these questions and seeking for further guidance from agents, it is best that you shop between one to three agencies to make sure you know what everyone is offering. With the many options available, note that not everyone could be credible. Find someone who has good reputation and has been in the industry for many years.
It may also help to read testimonials and talk to other land owners and investors. Many agents will tell you they are the best, but a confident agency like Harcourts Purba will advise you to seek a second and third opinion. The important thing is to be armed with the proper knowledge, then working with an agency with answers to these questions can lead you to the perfect investment.
With the many benefits that comes with real estate investment, today’s opportunities may not be the same tomorrow.
“Don’t wait to buy real estate, buy real estate today and wait.”