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Welcome to our Winter Issue! That is if we can get away with describing the months of January, February and March in Bali as winter! 2006 is upon us and we have asked our expert realtors to give you their predictions for the year ahead. As Global real estate prices continue to soar it is increasingly difficult to find reasonably priced property in good locations. We take a closer look at what Bali has to offer sub US$ 300,000 and discover there is quite a lot. We also focus on one of the most attractive areas of Bali in our location feature, Jimbaran Bay which remains as popular as ever and is attracting both new developers and buyers alike. In part two of our Architects of Style feature we visit Rob Sample’s latest completed villa project in Canggu, where he has created a fantastic, warm and modern living experience amongst traditional rice paddies.
Citation preview
� | Autumn HOT! Property Bali
8 Bali Snapshot Maps and facts.
Market Update A look back at the last few years and predictions for 2006
HOT! Comment Ian Macaulay director and co-founder of the Elite Havens Group gives us an overview on the factors driving Bali’s Property Market!
HOT! News
10 Tips Maximise your rental returns by choosing the right professional villa management. Some tips on what to look for.
At Home with Eric Li : Living the dream Eric Li, the man behind Asmara gives HOT! the scoop on realising his dream home and life in Bali.
HOT! Seat What is Organic timber furniture and how does it help preserve rainforests? HOT! spoke with Gerard van Vloten a creative influence behind Wood2love, with regard to design issues, global trends and the effects of our lust for unique timber produced items on the ever dwindling supply.
Hak Pakai - Pitfall for the unwary? A look at foreign property ownership using the Hak-Pakai method.
In-House Services you can’t do without when buying property in Bali.
Directory Contact Bali’s agents and service providers.
Volume 3|Winter 2006
HOT! Property Bali is published quarterly by PT. Dua Dewata, Bali, Indonesia, No. 220817003302, ISSN 1858-0939. We cannot accept responsibility for any unsolicited contributions. No part of this magazine may be reproduced, in whole or part in any manner, stored in a retrieval system or transmitted in any form without permission. The opinions expressed in the magazine may not be that of the publisher and publisher cannot be held responsible.
Subscribe and never miss out on a HOT! property in Bali. Subscribe on-line at: www.hotpropertybali.com
“My wife came to see the land and thought I had gone completely mad! So did the architects and my friends. Dad asked what had got into me, I had
no formal architectural training, and I had never built a house! People were describing my plans as the castle in the ghetto.” - Eric Li
Cover Photograph: . Rob Sample’s latest villa project Villa Maya in Canggu
101416183876
808284
imagine ...
Stunning ocean viewsA superb beach front location
24 hours five-star service and facilitiesState-of-the-art entertainment systems
Contemporary tropical décor
� | Autumn HOT! Property Bali
8 Bali Snapshot Maps and facts.
Market Update A look back at the last few years and predictions for 2006
HOT! Comment Ian Macaulay director and co-founder of the Elite Havens Group gives us an overview on the factors driving Bali’s Property Market!
HOT! News
10 Tips Maximise your rental returns by choosing the right professional villa management. Some tips on what to look for.
At Home with Eric Li : Living the dream Eric Li, the man behind Asmara gives HOT! the scoop on realising his dream home and life in Bali.
HOT! Seat What is Organic timber furniture and how does it help preserve rainforests? HOT! spoke with Gerard van Vloten a creative influence behind Wood2love, with regard to design issues, global trends and the effects of our lust for unique timber produced items on the ever dwindling supply.
Hak Pakai - Pitfall for the unwary? A look at foreign property ownership using the Hak-Pakai method.
In-House Services you can’t do without when buying property in Bali.
Directory Contact Bali’s agents and service providers.
Volume 3|Winter 2006
HOT! Property Bali is published quarterly by PT. Dua Dewata, Bali, Indonesia, No. 220817003302, ISSN 1858-0939. We cannot accept responsibility for any unsolicited contributions. No part of this magazine may be reproduced, in whole or part in any manner, stored in a retrieval system or transmitted in any form without permission. The opinions expressed in the magazine may not be that of the publisher and publisher cannot be held responsible.
Subscribe and never miss out on a HOT! property in Bali. Subscribe on-line at: www.hotpropertybali.com
“My wife came to see the land and thought I had gone completely mad! So did the architects and my friends. Dad asked what had got into me, I had
no formal architectural training, and I had never built a house! People were describing my plans as the castle in the ghetto.” - Eric Li
Cover Photograph: . Rob Sample’s latest villa project Villa Maya in Canggu
101416183876
808284
imagine ...
Stunning ocean viewsA superb beach front location
24 hours five-star service and facilitiesState-of-the-art entertainment systems
Contemporary tropical décor
� | Autumn HOT! Property Bali
32
44
Volume 3|Winter 2006
A Clear Prospect – Jimbaran Until a few short months ago, the name Jimbaran was unfamiliar to most of the world, save for local people, Baliphiles and tourists lucky enough to have witnessed its majestic sunsets and walked its white sand beaches. Three months after the bombs, Jimbaran continues to establish itself at the middle to upper echelon of Bali’s property market and is still as popular as ever, with developers and buyers alike!
Are we really in HOT Water? Everywhere we look, we are surrounded by water and an abundance of lush tropical greenery, and you could be forgiven for thinking Bali has an endless supply. Water is a precious resource in Bali, but why is it of such poor quality?
A Sample of Design Innovation Creative Director Rob Sample is part of a new breed of architect/designer dream team collaborating to offer A-Z services for custom designing individualistic modernist homes in Bali. We visited his newly completed villa project in Canggu.
A Villa in Bali for US$ 300,000 or Less… As of June 2005, the average price of a flat or maisonette in London was £ 250,294 which is close to $444,310 by current exchange rates and that’s without taking location into account. Here in Bali, you can get a fully furnished 2 or 3 bedroom villa with pool and panoramic views for less than $300,000. We give you a taster of what is available in exchange for that dingy garret flat in west London.
22
28
32
44
22
imagine no longerThe first ever beach
front 1, 2 and 3 bedroom
apartments in Bali.
Fully serviced and
internationally managed
by Outrigger Hotels and
Resorts Group.
28
Jl. Arjuna (Double Six) #88x, Legian, Bali • www.outriggero-ce-n.com • +62 361 734 587 • [email protected]
� | Autumn HOT! Property Bali
32
44
Volume 3|Winter 2006
A Clear Prospect – Jimbaran Until a few short months ago, the name Jimbaran was unfamiliar to most of the world, save for local people, Baliphiles and tourists lucky enough to have witnessed its majestic sunsets and walked its white sand beaches. Three months after the bombs, Jimbaran continues to establish itself at the middle to upper echelon of Bali’s property market and is still as popular as ever, with developers and buyers alike!
Are we really in HOT Water? Everywhere we look, we are surrounded by water and an abundance of lush tropical greenery, and you could be forgiven for thinking Bali has an endless supply. Water is a precious resource in Bali, but why is it of such poor quality?
A Sample of Design Innovation Creative Director Rob Sample is part of a new breed of architect/designer dream team collaborating to offer A-Z services for custom designing individualistic modernist homes in Bali. We visited his newly completed villa project in Canggu.
A Villa in Bali for US$ 300,000 or Less… As of June 2005, the average price of a flat or maisonette in London was £ 250,294 which is close to $444,310 by current exchange rates and that’s without taking location into account. Here in Bali, you can get a fully furnished 2 or 3 bedroom villa with pool and panoramic views for less than $300,000. We give you a taster of what is available in exchange for that dingy garret flat in west London.
22
28
32
44
22
imagine no longerThe first ever beach
front 1, 2 and 3 bedroom
apartments in Bali.
Fully serviced and
internationally managed
by Outrigger Hotels and
Resorts Group.
28
Jl. Arjuna (Double Six) #88x, Legian, Bali • www.outriggero-ce-n.com • +62 361 734 587 • [email protected]
� | Autumn HOT! Property Bali HOT! Property Bali Autumn | �
Publisher: PT. Dua Dewata Bali
PO. Box 3033 Denpasar, Bali 80030 Indonesia
Fax: +62 361 703 336 Information and Editorial:
[email protected] +62 817 067 0069
Website: www.hotpropertybali.com
Magazine Design by: PT. Maxwell Kreatif
PT. Indonesia Printer, Jakarta, IndonesiaInternational Distribution: Gold Key Media Asia Ltd.Indonesian Distribution:
Java BooksSubscriptions:
For enquiries, please call +852 2127 7003 or e-mail: [email protected] or
Subscribe on-line at www.hotpropertybali.com#41
Welcome to our Winter Issue! That is if we can get away with describing the months of January, February and March in Bali as winter! 2006 is upon us and we have asked our expert realtors to give you their predictions for the year ahead.
As Global real estate prices continue to soar it is increasingly difficult to find reasonably priced property in good locations. We take a closer look at what Bali has to offer sub US$ 300,000 and discover there is quite a lot.
We also focus on one of the most attractive areas of Bali in our location feature, Jimbaran Bay which remains as popular as ever and is attracting both new developers and buyers alike.
In part two of our Architects of Style feature we visit Rob Sample’s latest completed villa project in Canggu, where he has created a fantastic, warm and modern living experience amongst traditional rice paddies.
The feedback that we have received from our readers, not only in Asia Pacific, but all over the world, has been most welcome and has underlined our belief that people from all geographical locations desire a part of Bali’s fabulous real estate.
We strive to provide information and inspiration in a visually exciting format that is relevant to you, our readers, so your ideas are appreciated and discussed in our editorial meetings to bring you features and information that you want to read about.
We would like to offer an open forum within HOT!’s pages that allows for discussion with experts in the property market; so if you have any issues or questions that you would like to put to our panel write to us at [email protected].
We wish all our readers and advertisers a prosperous and peaceful 2006.
From the Publisher
Advertising: +62 818 350 515 [email protected]
International Advertising: +852 3188 3169 [email protected]
1
2
BalifactsCURRENCY Indonesian Rupiah (IDR) exchange rates tend to
fluctuate and most property prices are quoted in US$. Current exchange rate is approximately IDR 10,000 to US$ 1.
POPULAR AREAS South Bali including Seminyak, Nusa Dua, Kuta, Sanur, Canggu, Bukit and Jimbaran. Due to improved infrastructure, areas to the east such as Candi Dasa are also gaining popularity. Cliff and beach front land are in high demand but there is limited availability.
PRICE RANGES Many variables in terms of age, style, location and condition, so there is usually something to suit all budgets.
VISA REQUIREMENTS Visas are required for all overseas visitors and are available for purchase either upon arrival at the airport or through the Indonesian consulate in your home country.
MORTGAGES Generally unavailable to non-Indonesians. However, some
developers are offering finance terms to buyers. CLIMATE Between 20-33˚C year-round. Rainy season October to March.
From June to September there is lower humidity and cooler evenings. POLITICAL CLIMATE Indonesia is experiencing a move towards
democracy with a more liberal outlook. ECONOMIC CLIMATE Tourism, either directly or indirectly accounts for
80% of the island’s economy.TAX Assets and income in Indonesia are subject to taxation, it is advisable to
consult a professional for details.POPULATION Over 3 million people, the majority of whom are
of the Hindu faith. The island’s largest town and administrative centre is Denpasar with a population over 350,000.
1 2 3 4
KM
10 | Autumn HOT! Property Bali HOT! Property Bali Autumn | 11
top of that, the increases in fuel prices will knock on to higher construction costs which some of these companies are already underestimating. Frankly, I see many of the smaller developers going under in 2006 and 2007.
#41
“Terrorist activities over the past 4 years are merely hiccups in
relation to this growth” #41
BVW: The property market in Bali has really been booming since the 90s and boosted by the quality of some of the villas built in the past few years. Other factors have been the increased professionalism of developers, the talent of architects, the new improved regulations for foreign investors, the attractive return on investment, and high capital gains, and perhaps the most important factor, the continued attraction of the island.
After the events in 2002, most of the transactions stopped for around 18 months but the price of land and free hold property remained stable. Investment in property has to be considered on a middle to long-term basis and there was no reason for landlords or investors to sell during that period.
From April 2004, the market grew up very fast with an increase in prices linked to the general trend that has existed for many years, to catch up on the 18 months where the market was very flat. In 2006, I think the market will continue to grow in line with the general long term trend but at a slower pace than in 2005, because by the end of 2005 we had already caught up on the effects of 2003’s gloomy market.
ERE: The Bali property market has continued to grow at an exponential rate over the past 15-20 years. As infrastructure improves, the growth becomes more rapid. Terrorist activities over the past 4 years are merely hiccups in relation to this growth and cause the market to behave in more of a peaks and troughs fashion. After the recent spate of bombs, the
market has slowed but we expect it to bounce back again this year.
EH: I see 2006 being a good year- prices will probably escalate 20% over 2005 (as they have over the last 5 years). I think the Bukit will be the hottest thing. We will also start to see more apartment projects. I would think that buyers are finally going to wise up and stop buying properties on leased land. If the trends in banks loaning to foreigners continue and they get easier to implement, things could go ballistic. For security reasons I think we are going to see more and more clients staying in villas versus hotels.
2. Is the now the right time to buy in Bali?
RDI: It’s always the right time to buy if you buy wisely. However, if you’re not going
to do your homework, then no now is not the right time. Some developers will struggle over the coming months - many will make promises they cannot keep in an effort to stay afloat. Anyone investing with these people will be making a big mistake. Getting a big discount or a promise of extra rental returns isn’t much benefit if the developer doesn’t have the resources to deliver.
However yes it’s a good time to buy if you can be sure of the credibility and financial resources of the developer. Ask simple questions like: • How many completed projects do you have? • Can you show me evidence that your clients are receiving the rental returns they were promised? • Are you developing just in Bali, where the tourism market is going to be affected in the short term, or do you have projects elsewhere? • What is the financial standing of your company and how do you propose to prove it to me?”
ERE: In any property market when sales have slowed, the market favour buyers so in that respect now is a good time to buy. Some buyers feel insecure, but Bali is still Bali and if they wait to feel more secure, they will probably pay more for their property.
EH: No, you’re too late,
go home…! But seriously – yes as Bali is still good value for money and the current market has far more serious players – the make my decisions based on CNN crowd will be back soon enough based on past experience, creating another push upwards in price. Prices haven’t diminished since this most recent atrocity but there are less other people chasing stuff, which makes it an opportune time to get in – plus for most people in American dollars the exchange rate, is very favourable. The Rupiah prices of land will soon reflect the new exchange rates.
#41
“…If you wait to feel more secure, you will probably pay more for
your property.”#41
BVW: It is the right time to invest, because there is room for expansion and growth and the purchase conditions now should not be too hot, and more normal than previously. In addition, as construction costs increase, due to fuel hikes, it would be wise to anticipate looming construction inflation and to take advantage of properties that are already built and on the market being sold at the cheaper prices.
1. Give us a brief history/time line of the current boom from the summer of 2002 (pre-bombing) to-date.
RDI: Property prices were already growing steadily in the years prior to 2002 but there was not an established real estate market as we have today. Buyers were generally expat residents of Bali who needed a place to live and didn’t see the logic in paying high rents. Individuals buying land plots and then building their own villas to live in drove most of the growth. Some individuals would then see an income opportunity in building a second or third villa for rental returns.
One or two pioneers had developments inviting buyers to participate in rent-back schemes for investment purposes. Perhaps the best example was The Villas in
Seminyak. However, these projects were relatively small scale and had a couple of problems - a) the properties were only available on leasehold tenures and b) the marketing was very low key.
#41 “The concept, quality of design, build and
pro-active marketing was the first of its kind - it was an overnight
success”. #41
In 2002 things changed (here I’m afraid I can’t resist a little immodesty so please excuse my indulgence). We (RDI) launched a project called Royal Jimbaran Bay next to the Four Seasons in Jimbaran. The concept was the first of its kind, the quality of design and build was the first of its kind, the pro-active marketing was the first of its
kind and it was an overnight success. We went through the bombing with barely a hiccup. While other businesses floundered, our villa sales increased and we never had to reduce prices - indeed at the end of October 2003 our villa prices were 31% up compared to end October 2002 (by this time we had expanded the development with a phase II).
Towards the end of 2003/early 2004 other developers and the first independent sales agents came into the marketplace, many of them started by our ex employees and associates. Today there are dozens of projects all promising variations on the theme initiated at Royal Jimbaran Bay. Instead of one real estate booth at the airport there are four or five. Billboards are everywhere and the public’s awareness of Bali property as a good investment and a desirable purchase is
higher than it has ever been. In 2006, I foresee a watershed on the horizon. It appears to me that the market is close to overheating. If it’s true that there are 2000+ villas either under construction or in planning, I question where the buyers are going to come from.
Don’t forget we’re talking about clients who have disposable incomes of at least US$ 250,000. As yet, there is no reliable institutional financing available for foreigners buying Indonesian property. The buyers coming now are savvier and more able to shop around than they were two or three years ago. They’re going to be cautious with their money, are going to be asking more piercing questions than ever before, and not going to be fobbed off by promises that have no backing. The bombs of October 2005 are obviously not going to help either. On
A quarterly review of the current market and where we are headed.
Market UpdateAgents and
developers give us an historic review of Bali’s property
market and their predictions
for 2006.
Volume 3, Winter 2006
10 | Autumn HOT! Property Bali HOT! Property Bali Autumn | 11
top of that, the increases in fuel prices will knock on to higher construction costs which some of these companies are already underestimating. Frankly, I see many of the smaller developers going under in 2006 and 2007.
#41
“Terrorist activities over the past 4 years are merely hiccups in
relation to this growth” #41
BVW: The property market in Bali has really been booming since the 90s and boosted by the quality of some of the villas built in the past few years. Other factors have been the increased professionalism of developers, the talent of architects, the new improved regulations for foreign investors, the attractive return on investment, and high capital gains, and perhaps the most important factor, the continued attraction of the island.
After the events in 2002, most of the transactions stopped for around 18 months but the price of land and free hold property remained stable. Investment in property has to be considered on a middle to long-term basis and there was no reason for landlords or investors to sell during that period.
From April 2004, the market grew up very fast with an increase in prices linked to the general trend that has existed for many years, to catch up on the 18 months where the market was very flat. In 2006, I think the market will continue to grow in line with the general long term trend but at a slower pace than in 2005, because by the end of 2005 we had already caught up on the effects of 2003’s gloomy market.
ERE: The Bali property market has continued to grow at an exponential rate over the past 15-20 years. As infrastructure improves, the growth becomes more rapid. Terrorist activities over the past 4 years are merely hiccups in relation to this growth and cause the market to behave in more of a peaks and troughs fashion. After the recent spate of bombs, the
market has slowed but we expect it to bounce back again this year.
EH: I see 2006 being a good year- prices will probably escalate 20% over 2005 (as they have over the last 5 years). I think the Bukit will be the hottest thing. We will also start to see more apartment projects. I would think that buyers are finally going to wise up and stop buying properties on leased land. If the trends in banks loaning to foreigners continue and they get easier to implement, things could go ballistic. For security reasons I think we are going to see more and more clients staying in villas versus hotels.
2. Is the now the right time to buy in Bali?
RDI: It’s always the right time to buy if you buy wisely. However, if you’re not going
to do your homework, then no now is not the right time. Some developers will struggle over the coming months - many will make promises they cannot keep in an effort to stay afloat. Anyone investing with these people will be making a big mistake. Getting a big discount or a promise of extra rental returns isn’t much benefit if the developer doesn’t have the resources to deliver.
However yes it’s a good time to buy if you can be sure of the credibility and financial resources of the developer. Ask simple questions like: • How many completed projects do you have? • Can you show me evidence that your clients are receiving the rental returns they were promised? • Are you developing just in Bali, where the tourism market is going to be affected in the short term, or do you have projects elsewhere? • What is the financial standing of your company and how do you propose to prove it to me?”
ERE: In any property market when sales have slowed, the market favour buyers so in that respect now is a good time to buy. Some buyers feel insecure, but Bali is still Bali and if they wait to feel more secure, they will probably pay more for their property.
EH: No, you’re too late,
go home…! But seriously – yes as Bali is still good value for money and the current market has far more serious players – the make my decisions based on CNN crowd will be back soon enough based on past experience, creating another push upwards in price. Prices haven’t diminished since this most recent atrocity but there are less other people chasing stuff, which makes it an opportune time to get in – plus for most people in American dollars the exchange rate, is very favourable. The Rupiah prices of land will soon reflect the new exchange rates.
#41
“…If you wait to feel more secure, you will probably pay more for
your property.”#41
BVW: It is the right time to invest, because there is room for expansion and growth and the purchase conditions now should not be too hot, and more normal than previously. In addition, as construction costs increase, due to fuel hikes, it would be wise to anticipate looming construction inflation and to take advantage of properties that are already built and on the market being sold at the cheaper prices.
1. Give us a brief history/time line of the current boom from the summer of 2002 (pre-bombing) to-date.
RDI: Property prices were already growing steadily in the years prior to 2002 but there was not an established real estate market as we have today. Buyers were generally expat residents of Bali who needed a place to live and didn’t see the logic in paying high rents. Individuals buying land plots and then building their own villas to live in drove most of the growth. Some individuals would then see an income opportunity in building a second or third villa for rental returns.
One or two pioneers had developments inviting buyers to participate in rent-back schemes for investment purposes. Perhaps the best example was The Villas in
Seminyak. However, these projects were relatively small scale and had a couple of problems - a) the properties were only available on leasehold tenures and b) the marketing was very low key.
#41 “The concept, quality of design, build and
pro-active marketing was the first of its kind - it was an overnight
success”. #41
In 2002 things changed (here I’m afraid I can’t resist a little immodesty so please excuse my indulgence). We (RDI) launched a project called Royal Jimbaran Bay next to the Four Seasons in Jimbaran. The concept was the first of its kind, the quality of design and build was the first of its kind, the pro-active marketing was the first of its
kind and it was an overnight success. We went through the bombing with barely a hiccup. While other businesses floundered, our villa sales increased and we never had to reduce prices - indeed at the end of October 2003 our villa prices were 31% up compared to end October 2002 (by this time we had expanded the development with a phase II).
Towards the end of 2003/early 2004 other developers and the first independent sales agents came into the marketplace, many of them started by our ex employees and associates. Today there are dozens of projects all promising variations on the theme initiated at Royal Jimbaran Bay. Instead of one real estate booth at the airport there are four or five. Billboards are everywhere and the public’s awareness of Bali property as a good investment and a desirable purchase is
higher than it has ever been. In 2006, I foresee a watershed on the horizon. It appears to me that the market is close to overheating. If it’s true that there are 2000+ villas either under construction or in planning, I question where the buyers are going to come from.
Don’t forget we’re talking about clients who have disposable incomes of at least US$ 250,000. As yet, there is no reliable institutional financing available for foreigners buying Indonesian property. The buyers coming now are savvier and more able to shop around than they were two or three years ago. They’re going to be cautious with their money, are going to be asking more piercing questions than ever before, and not going to be fobbed off by promises that have no backing. The bombs of October 2005 are obviously not going to help either. On
A quarterly review of the current market and where we are headed.
Market UpdateAgents and
developers give us an historic review of Bali’s property
market and their predictions
for 2006.
Volume 3, Winter 2006
1� | Autumn HOT! Property Bali HOT! Property Bali Autumn | 1�
1 Corporate Commitment Nothing speaks as strongly as a committed, long-standing relationship
between a property company, the general community, and property owners over several years. If the company has been in the market for some time, has added value to its customers and maintained good staff relationships over the years, you can afford to trust them too. All of this stems from unswerving professionalism, and demonstrated service capability.
2 Depth of Management Scrutinize the management of the company. Do they have the
requisite skills and background to take responsibility of the day-to-day care and business operation of your significant property investment, and have they delivered on their promises in the past? Are there seasoned functional department heads, with plenty of years of experience in General Management, Marketing, Sales, Operations and Financial Control? How many capable employees do they have in the company in the many and varied roles? Visit their offices to see for yourself!
3 Financial Security There have been several natural and unnatural business cycles caused by
the well known ups and downs in the Bali economy over the last few years. A property management company needs to have strong financial reserves… after all; they may need to weather financial storms in the future without faltering in their management responsibilities to you and your villa.
4 Realistic ROI Projections Everyone deserves to make a fair/realistic return on their property
investment. Bali has seen some strong financial return promises associated with new villa projects, ranging well over 30% guaranteed annual return on investment. If it sounds too good to be true… maybe it is? The only way to discover the veracity of developer or property management claims is to dig into the details… line item, by line item. It’s worth the effort to review assumptions and calculation techniques. In some cases buyers may be surprised to learn they are paying for generous guaranteed returns, through creative villa pricing.
Choosing the right professional villa management company can go a long way towards maximising your rental returns. Here are ten tips when choosing one. By Guy Nelson, Exotiq Property Management
1� | Autumn HOT! Property Bali HOT! Property Bali Autumn | 1�
1 Corporate Commitment Nothing speaks as strongly as a committed, long-standing relationship
between a property company, the general community, and property owners over several years. If the company has been in the market for some time, has added value to its customers and maintained good staff relationships over the years, you can afford to trust them too. All of this stems from unswerving professionalism, and demonstrated service capability.
2 Depth of Management Scrutinize the management of the company. Do they have the
requisite skills and background to take responsibility of the day-to-day care and business operation of your significant property investment, and have they delivered on their promises in the past? Are there seasoned functional department heads, with plenty of years of experience in General Management, Marketing, Sales, Operations and Financial Control? How many capable employees do they have in the company in the many and varied roles? Visit their offices to see for yourself!
3 Financial Security There have been several natural and unnatural business cycles caused by
the well known ups and downs in the Bali economy over the last few years. A property management company needs to have strong financial reserves… after all; they may need to weather financial storms in the future without faltering in their management responsibilities to you and your villa.
4 Realistic ROI Projections Everyone deserves to make a fair/realistic return on their property
investment. Bali has seen some strong financial return promises associated with new villa projects, ranging well over 30% guaranteed annual return on investment. If it sounds too good to be true… maybe it is? The only way to discover the veracity of developer or property management claims is to dig into the details… line item, by line item. It’s worth the effort to review assumptions and calculation techniques. In some cases buyers may be surprised to learn they are paying for generous guaranteed returns, through creative villa pricing.
Choosing the right professional villa management company can go a long way towards maximising your rental returns. Here are ten tips when choosing one. By Guy Nelson, Exotiq Property Management
�� | Autumn HOT! Property Bali HOT! Property Bali Autumn | �3
HOT! FEATURE | Location
Until a few short months ago, the name Jimbaran was unfamiliar to most of the world, save for those local people, Baliphiles and tourists lucky enough to have witnessed its majestic sunsets and walked its white sand beaches.By Rufus Johnson
Its current notoriety has been acquired under the most tragic and violent of circumstances and yet as anyone resident here in Bali can
confirm, it remains in fact one of the most tranquil and beautiful areas of the island. No act of brutality can change that, though its consequences still linger.
Travel agents and tour operators tend to focus on the low lying area of Jimbaran, the westward facing crescent of beach cluttered with seafood restaurants just above the narrow isthmus connecting the main body of the island with the southern plateau known locally as the Bukit (hill). In reality, however, Jimbaran occupies a significant proportion of this upland, nearly 1/3 of its total land area and it is here that the property market has found what many are describing as the next real estate frontier.
Historically, the low-lying Jimbaran bay was the home of a relatively busy fishing village, Kedonganan which still exists today – indeed many of Bali’s high end restaurants buy their fresh fish from the Kedonganan market which is already bustling by 5 am. The neighbouring highland has always been sparsely populated lacking as it does that fundamental element necessary for human habitation: water. What few residents there were would trade wood and
stone for salt and fish from their neighbours, and were forced to carry water by hand up the steep hill each day. The presence of an important Hindu temple, Pura Ulun Siwi dating from the 11th Century maintained a connection with the kingdom of Pemecutan (covering the southern reaches of Bali with Denpasar marking its northern border), since regular pilgrimages were made to the site for important ceremonies.
Whilst the development of the Nusa Dua resort enclave and the Udayana university campus were instrumental in drawing investment towards the far south, it wasn’t until two of the world’s most illustrious hotel groups decided to build resorts in the area that Jimbaran’s real estate potential began to be realised.
The Four Seasons came first in 1992, followed in 1996 by the Ritz Carlton, more or less guaranteeing the future exclusivity of the area by their mere presence. A bevy of villa developments has sprung up in the stretch of land running from the Four Seasons up to the Ritz Carlton, including The Halcyon, Gending Kedis, Karma Jimbaran Resort and Villas at Jimbaran. “This part of Jimbaran definitely has a Riviera feel,” says Andy Barski of Paradise Property, “the views are a definite draw – you can look out across Jimbaran bay on clear mornings and see a Photographed by Jonathan Perugia
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HOT! FEATURE | Location
Until a few short months ago, the name Jimbaran was unfamiliar to most of the world, save for those local people, Baliphiles and tourists lucky enough to have witnessed its majestic sunsets and walked its white sand beaches.By Rufus Johnson
Its current notoriety has been acquired under the most tragic and violent of circumstances and yet as anyone resident here in Bali can
confirm, it remains in fact one of the most tranquil and beautiful areas of the island. No act of brutality can change that, though its consequences still linger.
Travel agents and tour operators tend to focus on the low lying area of Jimbaran, the westward facing crescent of beach cluttered with seafood restaurants just above the narrow isthmus connecting the main body of the island with the southern plateau known locally as the Bukit (hill). In reality, however, Jimbaran occupies a significant proportion of this upland, nearly 1/3 of its total land area and it is here that the property market has found what many are describing as the next real estate frontier.
Historically, the low-lying Jimbaran bay was the home of a relatively busy fishing village, Kedonganan which still exists today – indeed many of Bali’s high end restaurants buy their fresh fish from the Kedonganan market which is already bustling by 5 am. The neighbouring highland has always been sparsely populated lacking as it does that fundamental element necessary for human habitation: water. What few residents there were would trade wood and
stone for salt and fish from their neighbours, and were forced to carry water by hand up the steep hill each day. The presence of an important Hindu temple, Pura Ulun Siwi dating from the 11th Century maintained a connection with the kingdom of Pemecutan (covering the southern reaches of Bali with Denpasar marking its northern border), since regular pilgrimages were made to the site for important ceremonies.
Whilst the development of the Nusa Dua resort enclave and the Udayana university campus were instrumental in drawing investment towards the far south, it wasn’t until two of the world’s most illustrious hotel groups decided to build resorts in the area that Jimbaran’s real estate potential began to be realised.
The Four Seasons came first in 1992, followed in 1996 by the Ritz Carlton, more or less guaranteeing the future exclusivity of the area by their mere presence. A bevy of villa developments has sprung up in the stretch of land running from the Four Seasons up to the Ritz Carlton, including The Halcyon, Gending Kedis, Karma Jimbaran Resort and Villas at Jimbaran. “This part of Jimbaran definitely has a Riviera feel,” says Andy Barski of Paradise Property, “the views are a definite draw – you can look out across Jimbaran bay on clear mornings and see a Photographed by Jonathan Perugia
