Buying in addition to Selling Property in Bali – A Smart Move
Teito Furukawa, a high performing property consultant who has worked in Bali For just two years for Ray White Paradise was asked to answer some questions to give direction to property buyers in addition to sellers in Bali. Teito achieved Premier Performer in 2012/13 with 16 transactions producing him number four in RWP Indonesia. “My success comes coming from building a relationship of trust with both my vendors in addition to buyers. I try to build a strong relationship by giving them the best service possible,” says Teito. He in addition to his boss have a deep knowledge of the property market in This particular part of Bali in addition to see their roles as not only being there to sell nevertheless to advise clients what are the best real estate opportunities available within the market for their particular needs at any given point in time.
What has been generating land in addition to property prices in Bali in addition to what do you see the prospects being over the next couple of years?
Everyone knows property prices have skyrocketed over the past 5 years in addition to Bali is actually known today among the best property markets within the globe. Prices in Bali’s top residential areas have moved up sharply in This particular period, with Bali coming in second, behind only Jakarta, in a newly published survey of the 2012 global luxury property market by Knight Frank, with cost rises averaging 20 percent in Bali, tying with Dubai. Prices in Jakarta in addition to Bali jumped by more than anywhere else within the globe last year driven predominantly by a burgeoning middle class in Indonesia in addition to the region who see Bali as still a comparatively cheap nevertheless very desirable place to live or have a second home.
I know several vendors who, when they sold their property This particular year, achieved a 20 fold increase in 5 years, coming from US$ 30 per m2 in 2008 to US$ 600 per m2 in 2013. in addition to This particular is actually not rare at all. Investors to Bali today come coming from all over the globe in addition to demand continues to boost for all property, nevertheless particularly quality property.
Bali is actually a kind of “Cote D’Azur” for Europeans or “Hawaii” for Asians. the idea is actually the perfect domestic in addition to international holiday destination, a short flight coming from their home, whether in Jakarta, Surabaya, Medan or Perth, Singapore, Bangkok… close yet so different for the family’s second home or holiday retreat.
For the domestic buyer, Bali is actually the best investment island in Indonesia. Property values have risen fast in addition to are seen as continuing to boost due to a large, expanding middle class with rising incomes who want an escape coming from its ever more crowded cities. the idea is actually also seeing rising international demand. Bali is actually seen as a safe investment enjoying fast profit growth in addition to a secure capital gain. For the international investor, Indonesia is actually seen as politically stable, in addition to Bali in particular, is actually seen as having a great easy-going lifestyle.
What especially attracts people to Bali?
Bali offers a mixture of a different culture in addition to tradition. Today, you can find almost everything you want or need in Bali. Great beaches, the full range of shops in addition to restaurants, a swinging night life, in addition to its truly multi-cultural population – a harmonious mixture of Indonesian in addition to foreigner. of which’s what makes the idea attractive to everyone. the idea’s very strong, unique culture, partly religious Hinduism, partly friendly, welcoming, Indonesian society, is actually very attractive to many people coming from all walks of life.
For the foreign buyer, the idea’s also Bali’s location within the tropics, in Asia, between USA, Australia in addition to Europe. The regional low cost airlines, Air Asia, Lion Air, Jet Star, have also helped a great deal, bringing in many more tourists in addition to brand new residents.
Many Australian families, where dad works in one part of the country in addition to the family lives in another, say dad works in Western Australia in addition to mum in addition to the kids live in one of the east coast cities of Sydney, Melbourne, Brisbane, Canberra, or even Perth within the west, they have moved as a family to Bali. the idea’s easier in addition to cheaper in addition to a great experience to give kids early on in their lives, which suits the adventure-seeking, outdoors culture of many Australians. The same for business people who work in Jakarta, Singapore or even Hong Kong. the idea’s a smaller island, nevertheless has so much to offer the foreigner.
Many foreigners who come to Bali also invest within the real estate market selling or renting rooms, apartments, villas to tourists. Tourism underpins the success of the property market as an investment, as a business. Many villa complexes in addition to hotels enjoy ROIs of over 10 percent.
Foreigners drive investment in much of the real estate sector. They are attracted by the ability to make a successful business here, whether selling their goods in addition to services abroad or within the local market.
What in your view is actually the current state of the property market – growing healthily or a bubble?
Our sales inquiry reports over the past three years show an average rate of increase in demand of between 20-50 percent in favorite areas. I believe 2013 in addition to 2014 will be shown to have been an excellent period for those who invest within the right property. ASEAN’s “Open Skies” policy starts in 2015 in addition to projections are of which visitor numbers to Bali will at least double over the subsequent ten years to 2025. This particular is actually the main reason we have a brand new world-class airport complex at Ngurah Rai costing US$ 290 million opening in September.
Finally, what advice would likely you give to prospective sellers in addition to buyers about preparing for the process, what documents they need to have ready for a land or house sale in addition to what role you play within the marketing?
Any seller needs to get their house ‘ready to sell’ which means getting everything truly fixed up in addition to to make the property as desirable as possible to a potential buyer. They also need to develop the following documents (for freehold in addition to leasehold):
For land
Copy of land certificate plus land lease agreement (only for leasehold land)
Copy of SPTT / PBB – showing of which Land Tax has been paid
Copy of passport / ID / KTP of each owner mentioned on the land in addition to lease certificate
For House
Same as above
Copy of IMB – building permit specifying dimensions in addition to materials
Receipt of the construction tax (if applicable)
List of any items (fixtures/fittings) of which are not included within the sale
Our role, as a registered real estate agent, is actually then to put the property ‘on sale’ at a realistic cost. If sellers follow This particular advice, you can expect to sell within three to six months, particularly at This particular time of the year when people are looking to move to a particular area for their children’s schooling.
Happy house hunting!
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Buying in addition to Selling Property in Bali – A Smart Move
Buying in addition to Selling Property in Bali – A Smart Move