Purchaser's Check List for Buying a Villa in Bali
Bali is fast becoming the premier destination in Asia for investing in a vacation Villas. But before you buy.we suggest you go through our check list.
(PRWEB) March 14, 2005 -- Bali is fast becoming the premier destination in
Asia for investing in a vacation Villas. Purchasing a new Villa in Bali can be
an excellent investment as well as the perfect holiday escape. But before you
buy we suggest you go through our check list
Does the developer have the
requisite license to develop and operate a villa complex or hotel? In the main
area of Bali (Badung Regency) there has been a moratorium since 2001, on the
issuing of new licenses for hotel & Villa developments. Although you may
apply to build a single family dwelling, for personal use, many developers are
advertising their projects as “managed hotel or villa developments operating as
5 star resorts with high rental return potential .“ However, once built they may
not be able to operate at all.
There is a push by Bali’s major hotel
groups to have the government close unlicensed villa developments, since so many
licensed hotels are seeing their profits being eroded by customers simply
preferring to stay in private Villas, rather then a standard 5 star hotel room.
This is what is making Villa purchases such a good investment, provided
you choose the right development.
Make sure the developer has applied for
the following approval:
? PMA – Direct investment approval for foreign
investment
? Ijin Lokasi – project location permits
? Ijin Princip –
project approval
? AMDAL – environmental
? IMB – building
Permit
If developer does not have these permits they are probably
building under the guise of single family dwelling, which means they will not be
able to legally operate the development as vacation rental, hotel or multi villa
complexe and purchasers may find that once their villa has been built, it cannot
be rented or used for generating income.
Unless developers were already
in business prior to 2001 it is unlikely that they will have the requisite
licenses and permits.
Editors Choice: Club 151 - Pt. Hanno Bali www.club151.net
Location,
Location, Location
? Location – if your Villa is centrally located, near
the beach and close to popular restaurants and night spots, it will be easiest
to rent. You may initially pay more for a prime location, but with growing
competition in the market this may make all the difference in the future. Check
the standard and occupancy and nightly rates of nearby hotels, this may give a
good indication of future rental potential.
Editors Recommendation:
Oberoi Area of Seminyak.
Quality
? Quality – Don’t settle for
second best, buying the best you can now will provide easy resale and a long
life for your investment.
Amenities to look for
? Full Size
Swimming Pool – don’t settle for a plunge pool
? Air Conditioned Living
Areas – Bali gets hot and humid. Open air concepts are charming at first glance,
but for maximizing rental income choose a Villa design that has living spaces
which can be closed up and Air Conditioned.
? Restaurants – choose a villa
located within walking distance or short drive
? Parking – Make sure there is
ample parking
? Green Areas & Buildings - Single storey Villas have the
greatest appeal. Two storey projects often lack green areas, privacy and the sun
is not able to warm swimming pools.
? Number of Bedrooms - Choose a 2 or 3
Bedroom Villa as they are the most popular rentals. (Avoid 1 bedroom
Villas)
Services to look for
? Management Service
? 24 hour
Security
? Maintenance Service
? Maid Service
? Chauffeur Service
?
Spa Services
Construction Check List
? Ground Termite Treatment
before the slab is poured
? Deep Rock Foundations
? Steel reinforced
Concrete to avoid future cracking and shifting
? Steel sprayed with
anti-corrosion primer
? Floor Protected Rising Damp – Avoid concrete or
Terrazzo floors. They age quickly and tend to crack. This makes for a
considerable expense in the future.
? Insulated Wiring set in concrete to
avoid fire
? Double thick Galvanized Water Pipes
? Double thick PVC
Water Piping
? Back up Electric Generator
? Water Treatment - Water in
Bali contains high levels of Calcium and Sulfur, without proper treatment your
water will smell and your pipes will quickly clog.
? Sewage Treatment – Bali
is starting to regulate sewage systems, to avoid future problems and expenses
choose a development that has a proper sewage treatment plant. Septic tanks used
in unlicensed developments tend to overflow during the rainy season and
discharge directly into the surrounding areas.
? Bug & Rodent in Roofing
- (grass roofs look great at first but quickly become home for insects and
rodents and are a fire hazard – choose a conventional roofing system or if you
must have a grass roof (alang alang) put on top a conventional roof and have a
sprinkler system installed.
? Contractor – Make sure that the Developer is
using a reputable contractor or better that they also own the construction
company. Contractors make profits on the difference between what they bid for a
project and what the project actually costs. With competitive bidding sometimes
the only way contractors can make a profit is by cutting corners or shorting
items like cement and steel reinforcing – which will affect the life of your
investment.
Ownership
The law does not allow foreigners to own
property in Bali. However, foreigners may legally lease property in their own
name. Although there are ways to circumvent the law on owning freehold, our
recommendation is to buy a leasehold villa in your own name. We suggest you
choose a villa located in a prime area with high rental returns potential. If
your Villa generates good income lease extensions become a non-issue and you
will have avoided the pitfalls and complications of trying to own freehold
outside of the law.
Leasehold Villas in prime areas pay for themselves in as
little as 5 years.
Editors Recommendations:
Developer:
C-151
Pt. Hanno Bali
151 Jalan Oberoi
Seminyak, Bali
Tel:
62361 730306
Direct
Fax 62361730312
Email: e-mail protected from spam
bots
www.club151.net
www.hannobali.com
Estate Agent:
Colliers
International
Suite 5701 Central Plaza
18 Harbour Road
Wanchai, Hong
Kong
Tel 852 2828 9888
Fax 852 2918 1022
www.colliers.com/hongkong
www.colliersresidential.com
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Source: http://www.prweb.com/releases/2005/3/prweb217789.htm