Відео

Thank you very much, Timur! Also to you all the best with your investments!

Sure, let me try to clarify. I have built the villa on a plot of land that I leased for about 30 years. After that, the land and the villa will revert back to the freehold owner of the land. Therefore, I depreciate the value of the asset (leasehold and building) over that duration.

I agree, I like Bali for the nature and calming environment. If I want an urban place, I would go somewhere else. But to each his own, some people like this style.

Let me think about it. My initial thought is that people who want to move to Bali should rent a place, at least for a year. Most people who dream of a life in Bali leave after a year or so and in that case, they would be better off renting. I'll look into it.

@@villanomics thank you I appreciate your reply. But in this case I have been to bail 12 times 3 or 4 weeks at a time and am pretty familiar with life in bali yet Im open to be learn more. Love your channel/edu!

Hi, please send me an email and I will reach out to you when I come across something interesting. Maybe you can specify what you are looking for and I'll keep it in mind.

Thank you, Stefano! All the best with your villa plans!

Haha, yeah, looks more like a plunge pool to cool down, but it is really nice.

Thank you very much! It is leasehold as most villas of this kind.

Thank you very much! Please send me an email about the furniture, also describe what you have in mind.

Hi Jennifer, my villa was built by Magnitude. You will recognise their style in many villas in the Ubud area.

Hi Duke, thank you very much! As for taxes, I intentionally avoid talking much about taxes. Income taxes on the profits you make from your investments depend a lot on your personal circumstances, for example where you have your tax residence. So it is not possible to give a generic answer that is correct for everyone.

@@villanomics Thank you very much for your answer. The country I pay taxes is Hong Kong who has a double tax treaty agreement with Indonesia so I am on 10% after doing my own research. I have two arranged phone calls with agents and the reason I asked you is that i know the agents will not provide the whole truth but what is convenient for them to sell services. Based on your video at the end you had an 8% yield excluding all expenses. Including the taxes a 7% yield is realistic? That’s all i would like to know if possible. A 7% at the end is ok but if less i would be very skeptical for my own investment. Thanks again

No, I am not married to an Indonesian. But you can invest without visa and - if you want - you can also opt for an Investor-KITAS.

Sorry, I'm not big on Instagram.

So nice of you

Thank you! Cheers!

Correct, the house becomes part of the land and will be handed back to the freehold owner of the land.

​@@villanomicsunless you get an extension and then sell the house, or continue your rental..

Interesting, why do you think so?

From yourself ;-) It is just to support the calculation and show that you are missing out on earned interest on your savings if you invest it in the villa.

Thanks! Will do!

operating expenses and villa management are separate. Operating expenses are things like laundry, electricity, replacing or fixing things, cleaning... Villa management is managing bookings and guests, but also coordination and oversight on operations.

Thank you 🙂

Operating expenses are things like electricity, cleaning, laundry, salaries of staff... I will make another video on the second year when it is over and I have the numbers. Can't wait myself to see if it gets better or worse ;-)

Good point! It is a long-term project for me, but I will make an update later this year.

Hello, yes, will put something in my backlog

Hi Stefan, send me an email and we can schedule something.

Hi mate, I tried to answer you many times giving you my mail but it erase it. Probably I can’t write it in here. Is there a way to write you directly? Thanks

@@villanomics@

Hi, tried to send you a mail. But you can find my email on the channel page, you need to be signed in with google.

Ah ok I try 😉

Yes, absolutely, you start with low rates to get some first bookings and gather your first reviews. However, you would offer at higher rates beyond the first 3-6 months in order to establish sustainable rates and get to the revenue you need. Accepting bookings at low rates in the far future is a bit unusual.

Because you don't buy property free hold in Bali as a foreigner, you only lease it for x years, 25 years being the most common. You can extend up to 80 years in total (50 years for building), but you will have to pay the same money (+inflation & appreciation) for the extension.

​@@trdi We can call it what we want, but we (foreigners) can't sell the lease? Let's say you rent out the villa at a 15% net ROI for 5 years, then you can sell the lease to someone else. Since prices are "supposed" to rise, the lease will be worth more. Of course this is negated by the fact that it is worth less due to a shorter rental period. Suppose the two cancel each other out, you made 15% a year, then sold it for the same price you bought it for. I would like to understand this more clearly. If prices rise at a higher rate than they are worth less because of the shorter rental period, you can make a profit on that too. In addition, if you can rent it out for more money year after year it further increases your profitability.

​@@trdi You're confusing leasing with certified land titles such as Hak Guna Bangunan (the Right to Build) and Hak Pakai (the Right to Use) that have legally mandated maximum (but not minimum) durations for initial and extension/renewal periods and are registered with the National Land Office. A simple property 'leasehold' is not a recognised form of title in Indonesia (unlike in Common Law countries) and is just a private contract between the Indonesian owner (who retains legal ownership title at all times) and the foreigner (who must reside in Indonesia) that allows the foreigner to 'possess and use' the owner's property for a mutually agreed period of time. Leases are loosely governed by the Civil Code which does not mandate either a minimum or a maximum duration for a lease (I have seen one that was for 100 years) or even the terms and conditions of the lease agreement such as a right to extend etc. - it's all up to the parties involved to negotiate everything. None of the above options allow a foreigner to run a short term letting business however.

@@janoka910 Don't be taken in by these delusional and misleading UA-cam videos. There's no legal way for a foreigner to lease a villa then rent it out on the short-term market - all commercial transactions must be through a registered business and foreigners can't register a business - and leases (which come under the Civil Code and are not subject to mandated initial, extension or maximum terms) cannot be the subject of sale-and-purchase under Indonesian law - they can only be transferred with the owner's agreement. This guy has also made a serious miscalculation in his analysis by allowing the full 29 years of the lease to recover the capital employed when most houses in Bali, which has arguably one of the worst building standards in the world, will not be in lettable condition to Airbnb standards after just ten years as the effects of tropical heat, humidity, rain, ants, termites, vermin, earthquakes and foundation subsidence (most are built on land that was a rice field for a thousand years and use less than one metre of un-compacted soft coral stone for the foundation fill) cause leaking roofs, sagging ceilings, warped woodwork, jammed doors, cracked walls (soft bricks joined by mortar mixed with beach sand), peeling paint inside and out and leaking swimming pools no matter how good the maintenance along the way.

My pleasure!

Thank you!

Good point. I am interested in investing myself and I am looking for a property with a 30 year lease with the option to renew. This option alone will be a good selling point when the time comes to divest yourself of the property.

You find my email on the channel page

@@villanomics it’s not 🫣 thats why I’n asking! I’d be happy to speak with you!

Haha, thank you! Can't help the accent :-)

You are very welcome!

If you like Canggu, that would be my first recommendation. Uluwatu has a couple of interesting up and coming areas, but I think investing there is more difficult than in Canggu, at least until the market there has grown and matured a bit more.

Actually, I think Propertia is one of the better ones... What kind of investment villa are you looking for? And how well do you know Bali?

@@villanomics I've been in contact with Balivestor. Are they any good? Seem to have some interesting options. I would be interested if you could make a video on building "standard template villas" vs. fully customized. I'm guessing that building one of their templates is cheaper, but your villa is then just one of many. Not sure how important that is for profitability.

Ask your agent for the contact details and follow up with that villa manager. Getting a good service for 15% would be very unusual. Real estate agents making things look better than they are is not so unusual, however.

Have seen many at 20% but a real estate agent told me its usually 15% so I guess it depends if they are charging foreigner rates or not

Haha, thank you very much! :-)

It starts around 200kUSD for a reasonably nice townhouse in Canggu in a good area.

@@villanomics thanks it is almost as cheap as in my counry but better view :)