Don’t splurge too much on furniture or appliances
Many foreigners that come to Bali looking to invest in real estate often do so with the intention of buying or leasing a piece of land and then renting out their property.
I encourage them to do so, especially if they’re looking at getting returns from the yearly rental market.
Why you may ask?
Well, the first reason is cost. Whether you’re leasing or buying the cost of acquiring land in a tourism zone is more expensive than in a residential zone.
But every year we notice the decline of good quality yearly rentals, which is due in part to the growing number of expats coming to Bali.
There is, however ample opportunity to get solid returns out of your investment as long as you follow a couple of very simple steps.
1. If you’re looking to build and then rent, our advice would be to first identify the general area(s) that you like in Bali and then from there look into specific areas that you see expats living in.
Remember, there will be practical reasons for expats living in certain areas but more often than not it will have to do with close proximity to schools, shops/ restaurants and other basic amenities.
Once you have filtered this down to a specific neighborhood or even a street then naturally it becomes our job to find the piece of land that fits with your requirements.
2. It’s not in your interest to spend too much money on the cost of finishing or furnishing your villa.
This is where we at Seven Stones often get strange looks from our clients.
You see, in their minds they are pragmatically thinking that surely if I spend more on finishing and furnishing my property I will be able to charge more for it.
But this is where Bali may be a little different to where you’re from when it comes to real estate.
In Bali when we do property whether they are for rent or for sale, we will primarily look into the size of the land, the size of the build, the number of bedrooms, the location and the kind of views that you can have from the property.
We generally do not take into consideration whether or not your kitchen counter is made from marble, or granite or a simple polished concrete.
Nor would we pay too much consideration if your kitchen is equipped with an Italian brand that was imported or from a more standard brand.
That’s just the way it is here and knowing this can save you lots of money when you’re building your property.
We definitely do not suggest you should try and save money on anything structural, as all properties in this tropical environment demand the highest of structural standards able to withstand the many challenges that buildings here have to deal with.
Therefore, build a strong structural property yes, but then don’t go jumping in to acquiring the most expensive furniture or electrical appliances. We’re not suggesting to go as cheap as you can but there’s also no need to go top of the range either because when it comes to renting or selling it just won’t influence the price and market value.
You may want them too, you may think they should but the bottom line is they won’t.