Ever thought about taking all you have and move to a beautiful place like Bali? Seems easier said then done considering you may not know anything about building or buying a house there. Well, here is some information for you.
Interested in Building or Buying?
Though most of us find it easier to just buy a property rather then starting from scratch and build. The type of house you are looking for may be available for sale. If you are able to convince the owner in selling the house to you, remember that the owner if foreign, may want to receive the money for the house in their own currency which could be Euros, Australian or US dollars.
Since you may end up paying more then you’ve wanted to in the first place by buying an already owned home, it is often the better choice because you know exactly what you’re investing in. You’ll be able to walk through the house and determine if it is worth your money or not. Luckily, most of the villas you may be looking into buying will come fully furnished and once you’ve bought it you will be the immediate owner and can decide whether you’d like to rent out the villa to holiday guests and make money from you investment or just move in and make it your new permanent Bali home.
On the other hand, many people have in their minds exactly what type of house they’re looking for, so if you have the time on your hands to fully look over the construction of your own property then buying your own plot of land and building a villa isn’t such a bad idea.
Imagine the nightmare it could be if you aren’t able to speak Indonesian and you don’t really know much about construction and if you can’t be on-site all the time. You may think it’s acceptable to just let professional contractors and architects do the work but if you’re looking for certain details that can’t be missed then you really need to be there most of the time.
Out of the top three requests most new home builders are looking for (low cost, top quality, and a quick completion) you may only be lucky to get two out of three goals, but you may not receive all. So it’s up to you which to pick.
Luckily there is a third option, which is for you to buy some property in Bali that comes in a package with a villa from a developer with great knowledge in building. If you decide to go this option you can be worry free and not run into any problems while your home is under construction and you can speak with foreign experts who will fully understand your requests and questions and know exactly what you mean.
Now to look at your price range in Bali: if you’re looking for an already built villa with a swimming pool and garden and which is not too old, the pricing will usually begin at 400,000 US dollars and could go as high as 2,000,000 US dollars and more.
Villas priced as such are usually 50% less than villas priced at a different tropical destination. For example Phuket, which is not as beautiful and has an extended rainy season compared to Bali. On a good note, there are decent-quality villas on the market in Bali. Though cheap houses are on the market as well, it’s not a very great idea to buy one because the maintenance it comes with can cost you even more and renting it out can sometimes be difficult.
When you’re looking to buy land, the price range from 50 US dollars to 1000 US dollars per square meter (11 square feet). These prices also depend on where the land is located, if it’s out in the middle of nowhere you could find cheaper land under 20 US dollars. But if the land you’re looking for is near the beach and in a popular tourist area like in South Bali the price range you’d be looking at is between 70 US dollars and 350 US dollars per square meter. Now if the land has a great view, is in an area where there’s an up-market development, or is right along the beach your price per square meter could range from 300 US dollars to a lot more, but the highest prices you’d be looking at would be land in busy Seminyak and Petitenget.
Due to the fact that many people feel very safe in Bali, the prices have climbed higher in the past few years. Many foreigners and local Indonesians have bought property even though the prices kept on rising.
Construction costs can vary from a good quality home for 400 US dollars to 1,200 US dollars per square meter right now. This pricing does not include site development and preparation, the supply for your electricity and water, swimming pool, access roads, treatment for waste water, filtration or water pumps, power generators, consultant and architect fees, landscaping, all the costs for the permits and various licenses you’ll need and so forth.
At this time of writing, the current exchange rate from US dollars to Rupiah is 8,900. Please consider that these amounts are going to continue to rise though. Trying to save money by cutting corners during building a house will actually make the maintenance costs you run into be a lot more then needed and renting your villa to others harder then it should be.
The highly recommended areas
Location, location, location.
When buying any property or house in Bali or around the world, location is the most important matter to consider. The pricing for land that have properties offering fabulous views, downtown locations, and beautiful beach fronts are on the rise, and if you’re looking to rent out the property because you’re not able to live in it full-time, the best suggestion would be to buy something that has a nice view or is right on the beach.
If you ask for our opinion, we would suggest that you look for a villa in Jimbaran Bay and on the Bukit which is a southern peninsula hill right between Ulu Watu, Jimbaran and Nusa Dua, the west coast of Bali in the area of Tanah Lot to Batubelig, the town of Seminyak which belongs to the most popular and attractive areas.
Here is a good look at the real estate scene in Bali and some great advice for you. Don’t be surprised if people tell you that it’s of great importance for you to be there while building a house. The people working for you work at a slow pace and expect to have all the Balinese holidays off and paid for and they will try to avoid working on any rainy day. Though you may have a large group of like 20 workers, if they get down to their last cement bag you won’t find out until it’s empty. This may all seem very displeasing but in the end many people have built their dream home. Don’t slack and expect all the answers to fold out right in front of you, do your research by talking to experts that have been there a long time and try to avoid those ones that are looking to make some quick money with their “smart” words and promises and also speak with more then one construction company. As long as you get it all together and make sure everything is legal, economical, and with a great structure then it all should go your way.