Hey Rory and Casey, absolutely love this vlog, so helpful. I’m moving to Bali in the next few months ( I have an Indonesian fiancé) and we will look for land as soon as I get there in similar area to you guys. I’m a builder btw so happy to give advice or even occasionally look over your project. Thanks again legends Stu
That's awesome Stu! Congratulations! Thanks for the offer we've actually got people who are doing that for us anyway 😊 If you need a good reliable trustworthy agent to look for land let me know!
Great information mate. I am in Bali doing my solo trip and realised that Bali is such a great place to rest and chill. I’m doing some travelling around over the next two months and will definitely keep an eye out on land and keep doing the research. Thanks for the video, and congratulations!
Awesome and super informative info, we start our journey looking for land end of October. Just wondering the zoning link website. I couldn’t see it in the comments section? Thanks guys and wonderful end product too
Your vlog is very informative for people like me who are interested to live in Bali. I am Indonesian however thinking about going back to my homeland but have no idea how as foreigner be able to acquire land & build a home there. If you could show me the process & cost for each step would be appreciate it🙏🙏
If you want the full guide with everything I learned about building in Bali and all our vendors and suppliers it's now available in the video description!
Hey Rory, love this summary of the process to buy/build in Bali. My wife and I have always loved shooting across from Perth to holiday in Bali & often thought would be cool to own something but always to afraid to take the leap. You have really given me some food for thought keep us updated and great video
Thanks for watching! Honestly were a couple more months in now and the whole process has been a breeze. The hardest part in the whole thing is an Australian broker and bank dragging their heels, everything happening in Bali has been so easy. We're heading back in December so will be doing an update video then.
Hi Rory. Great video, thanks for sharing. All very clear and well explained, and my only doubt/question is regarding that 20% land tax you had to pay when you purchased the land. That's a big additional fee that I didn't know was part of the equation - is it always ~20%? Is that to be paid again on a yearly basis, or how else is the yearly land tax calculated? Thanks!
Thanks for watching! My advice would be to setup a PT PMA at the same time as you are getting land (I've since learned this is necessary to rent the villa eventually anyway) this will give you the ability to drop it to 10% tax. This is a one time fee that is paid on the overall lease agreement. I like to think of it kind of like stamp duty. You do need to pay land tax each year but its a very small amount.
Great informative video...do U have the real estate agent who sold you that piece of land please? My partner and I live in NY and prices here are unbearable...we love Bali and want to set up an Airbnb property to rent out and eventually retire ☮👍🏻
We used a local agent, just a guy who knows everyone in the community and knows which families want to sell land. It's a bit different from what we are used to in the west. The land was 3 are (300sqm) and it was 8mil idr/are/year. Land prices in Bingin have shot up since then but you can still get affordable land a bit further out.
Thanks for all the information. Do you have an option to extend the lease at market levels after 30 years? My concern is what happens if the owner doesn't want to extend your lease?
Thanks@@RoryandCasey that's good to know. One of my concerns was I'd build this lovely home and then after say 25 years the land owner would take ownership of it.
Hey Rory. Great video. We’ve just bought land in Ungasan. So, this video was especially helpful. I look forwards to seeing your progress. Good luck with the build and your investment returns.
I read that for the PT PMA you must invest 10 billion IDR within 3 years ? So you need to build 2 villas ? Or invest that amount on the one villa ? If I am understanding it correctly
You have to have a plan to invest that much over that time. You don’t necessarily have to stick to that plan. So long as you can show that you are working towards it they don’t care. My advice i received is that my legal team don’t know anyone who has reached the target and there’s never been an issue. The law and the interpretation/implementation are often two different things in Asia.
@@RoryandCasey gotta start somewhere mate, just got back from Bali & spent time in ulawatu, l have a Bali mate who knows his stuff & he tells me, it’s the next big area in Bali. I will definitely be looking at doing what you guys are doing alittle down the track.
@@craigsutton592 Completely agree about Uluwatu, the entire Bukit is growing rapidly. It'll be Uluwatu and also Seseh/Cemagi beyond Canggu that are the next big growth areas.
Hi Rory, thanks for sharing :) I’ve just decided to build on two plots of land in seminyak and bukit to rent out or put on airbnb. Do you have advice or recommendations on finding someone local to manage property as opposed to going through a property management company?
Hey Sheila! Congratulations on the decision! You can definitely find and hire someone local or even do it yourself but in that case you 100% need a pt pma as well as a lot more permits that the management companies already have. For me once I started to look into it the management company made sense. I’d be about $5k a year better off without the management company but for all the headaches I’d rather them do it. So with that said I can’t help with finding someone local to do it because I simply don’t know! I do know that it can be done. You can also go halfway with a management company where they will still manage the property but won’t manage the bookings etc. you’ll still need a pt pma but you won’t pay as high a % of the booking fees to them.
@@RoryandCasey thanks for the quick reply and this valuable information! I am 7-9 months for my villas to be ready so early days looking into this. Looks like your ahead of me with this research. So many variables to consider. I guess we just need to make sure we do everything by the book. I’m hearing of the government kicking westerners out because they are not following rental guidelines. Best of luck with your villa! You must be close to completion!
@@sheilahall9580 yeah 100%. I don't blame them. I want to make sure we are absolutely above board with ours even though it costs money to do so. Not worth risking that investment over it all. Not long at all now! Mid July and it should be done!
Amazing! 🎉 Is there a way to connect with you both privately? 🙏It seems like I am also wanting to achieve the same as both of you but going down the multiple off plan villas route. I’m slowly looking to build a network of likeminded people all connected to Oz.
Great information! I was told that I needed to have my KITAS & PM/PTA in order to even lease however you’ve given me hope! Are you in Bali on a B211 visa? And to confirm if I worked directly with an owner, could I lease as well?
Obviously seek your own independent local legal advice. But you don’t need to have a Kitas or pt pma to lease land at least you didn’t when I did it last year. We were there on a tourist visa. The entire process was audited by our own lawyer in Denpasar so we know it’s all legal and above board.
If you signed the contract with the owner of land/property for 30 years he can change his mind or selling this without your agreement, or can not give you extended after 30 years?
He can’t change his mind it’s a legally binding contract. Our contract also stipulates that we have the right to renew the lease for an additional 30 years so the owner isn’t able to change their mind on that either.
Great vlog / information would love updates along the way even if they are verbal from Australia. I’m researching to start this process myself. Is there any risk to your leasehold property if the land owner doesn’t pay his land taxes in the coming years or is your land considered separate where those issues are concerned. Can’t find any info on that. Thanks, keep the updates coming. Much appreciated.
I'll definitely be providing updates! Getting close to starting the build so I'll post a bit of the process with the builder at some stage in the next couple of months. Great question about the taxes. Our lease agreement for the duration of our lease the land tax is our responsibility which is totally fair because it increases once you put a building on it. It's still not very expensive, I've been told it will probably be under $1-200 a year. I am under the impression that it's a pretty common thing to have written into the lease. Our independent lawyer confirmed that the notary had just written a completely standard lease agreement with nothing unusual in it.
Just jump on any of the local pages. We found our agent through the 'uluwatu community' facebook group. There is also one for almost every other area in bali
Great video. I’m actually looking to expand my prefab business there, and this was really useful information. As far as taxes go, do the land owners have to pay that every year? If so, how do we make sure that continues to be paid?
Glad it helped! As far as the taxes go, they do need to be paid each year and normally its the responsibility of the leasee (me in this situation). I'm not 100% sure of how I make sure that it's paid but my lawyer and accountant in denpasar is going to be looking after all of this for me but when the time comes I'll include it in a future video!
Not expensive at all . Residence land only around 100 to 150 thousand Rp which is 8 to 10 US dollars per year. Later you will get a letter from notaris and take that letter with you everytime you go to pay the tax in Bank BPD Bali. The price automatically on the bank system so should be safe. Always safe...So no worries
Hi Rory, Are you happy with your notary that you recommended? We are close to pouting an offer for a villa so we are looking for notary.. I googled your notary but it says temporarily closed"
I really liked my notary! I believe she is still open. I think she’s just moved offices slightly down the road. A friend is currently using her services so I assume she’s still active
Hello this is great, we are also on the path to buying a villa that's already running as a successful holiday rental. Can I have the name of the website you mention for return on investment on holiday rental? Thank you
Awesome! It's airdna.co and it tracks Airbnb data from any region in the world (you need to pay per region) but it's worth the money for being able to do the research
Hi! Thank you for the info! This is super helpful! I was told that we will need a PT PMA and KITAs to build and rent it out as a Air Bnb, do you know if that is true? And do I need to be there in person for any steps (like bank account)? lastly, if you have any good contact for land agent, construction, please let me know! :)
Yep that’s right you’ll definitely need those Legals done. I have an entire Bali villa guide available in the video description that covers everything we learned as well as all our contacts we used including legals, agents and contractors. Hope it helps!
Thank you so much! 🙏 it should come through to your email you purchased with automatically within a few minutes of purchase. If you haven’t received it in a few mins check your junk mail just in case it’s ended up there 😊
Hi Rory, Nice and informative thank you. We are in the process of purchasing a lease hold villa off the plan. We are not sure how we should structure it. Do we need to get a PMA? Or can we just purchase it in our names?
If you plan on renting it you’ll eventually need a pt pma. I’d get it out of the way early. I’ve heard rules are changing soon and it may be harder to get a pt pma in the future
Love this video, we are actually just starting this process, we actually stayed in the area last time we travelled to Bali and totally agree with you about the area. Can I stay in touch with you for your help? By the way how many years did you lease for and the price if you don’t mind me asking
Hey Dianne, that's awesome! Absolutely you can stay in touch! Feel free to message me on our villa's instagram page instagram.com/villa.raava.bali/ if you need any help or advice! I can point you in the direction of the agent we used to find the land who we trust and took care of us as well as notary's when the time comes. We leased 300sqm of land for 30 years and the total cost was 720,000,000idr which is very much on the lower end in the area. I'm not sure even a few months later whether you could find land in Bingin that cheap. Realistically for good land you should budget between 10-14million idr/are (100sqm)/year. Most of the time you can negotiate leases between 25-30 years. If you are lucky and have the capital you might even be able to negotiate a longer lease. Just make sure you have the option to renew your lease when it comes time!
It's hard to tell. An agency won't charge you. They will make commission of the sale and that will be between the agency and the owner of the land. I can tell you even sourcing it myself the same land was shown to me by different people and there was a 25% price discrepancy between the lowest and highest prices we were told by different people.
@@RoryandCasey wow that’s a considerable difference. Do you go into details in any video on what you actually paid in the end? I saw the one where you laid out the total cost but is there a breakdown?
I haven't made one yet. I am going to make one once it's all don't though. We are still going through costs of furnishing and permits for rental, management agencies etc so I want to be able to give a full picture once it's all done
Hi, great info thanks. Did you consider setting up a PMA? We are looking at options currently. Also how did you find a contractor/project manager for your villa build?
I did consider it so we could purchase land freehold but honestly the value wasn't there for me. Land prices are pretty expensive freehold and I can get 60years of leasehold for less money most of the time and beyond that I'll be dead so I won't care. We found our contractor by just looking at what was out there. We liked their designs so we went and had a look at a finished villa that was for sale by then and so met and had a chat and we just got good vibes. It's Bali Creative Development and they have made the process so easy for us.
hi Roy, thanks for your info, if in tourist zone you can rent for one day ect........and yellow zone monthly etc,,,,,,,,,,for example ,,,,, but most of the villas in canggu / seminyak are build in yellow zone accordantly to the map zoning link from badung.. how come they are renting the villas daily ? or something to do with air b&b ?
Tourist zone is easier to get a pondok wisata for daily rental but it's not impossible to get one for yellow zone. It's one of those situations where you need to just make sure you have the right person organising your permits
Good luck with your project. According to Google, in the case of the sale of leasehold property, (Ham Sewa), the tax is the liability of the seller and, as he is Indonesian, it's 10%. Not only did you, apparently, pay the seller's tax, you paid another 10% on top. Did your lawyer confirm the 20% was normal? When you eventually sell and assuming you are still non resident, you will be liable for a further 20% on the proceeds.
It’s very standard for the buyer to agree to pay the tax. You’re technically correct. It is the sellers liability but if you don’t agree to pay it then you won’t get the lease. If you’re lucky the seller might go 50/50 but it’s normally only when they are getting above market value. The 20% is if you are on a tourist visa. My accountant managed to get me only 10% though so I did end up only paying 10%
@@RoryandCasey Thanks for your reply. You are correct. The Balinese expect bules to pay their tax! You need to get your visa, residency, sorted out before you start your Airbnb renting. My understanding is that it is illegal for villa owning foreigners to rent out their villas unless they have the correct visa and other investment paperwork.
@@Alamanda1 yeah 100%. Though it didn't bother us. We knew going in there was going to be an expectation that the tax would be on us so we were budgeting for it all along. What you say about visa and permits etc is true as long as you are doing the management yourself. If you use a management company there's no requirement to have any visa at all! The pondok wisata will all be sorted by the management company but all money in and out will need to run through the management company in that scenario. If you're willing to go down the path of setting up a PT.PMA then you can do it all yourself. I ran the numbers and you are maybe a few thousand $ a year better off doing the PT.PMA but for the extra effort it would take I'm more than happy to pay the bit more and let a reliable management company take care of it for me.
@@RoryandCasey Yes, I agree my condo in Bali is handled by a management company. I formed a PT-PMA company in Lombok in 2002 to own my bar/restaurant which is on a HGB title. That's when the process didn't require Rp10M capital and was much easier to set up. Good luck with the project, it's coming on well.
There are so many variables to consider to be able to give you a good suggestion. Bali is a huge island. I’d suggest visiting and exploring the main areas to see where you do and don’t like and then narrow it down from there! We chose the Bingin region because we liked being near the water and the chill vibes a perfect mix between Canggu and Ubud but what we like isn’t the same as what you might like.
That’s the best way to do it! Decide whether it is to live or for investment. If it’s to live find your favourite spot. If for investment any tourist area will do well. Some will do better than others but a lot of it is to do with location close to tourist areas.
It is not expensive or overly complicated to open a corporation and buy freehold land as a foreigner. It is foolish to lease land and watch it depreciate to no value at all, while I and others (who did it right) watch our property investments double and triple. I couldn’t imagine paying to build my dream home on rented land.
Hi Somesh. I’m sorry I don’t have the time to meet or talk to everyone who watches my videos. If you have specific questions feel free to message the villas instagram @villa.raava.bali and I’ll get back to you when I can
@@peteiovene9177 thank you. Is this statement based in new legislation? AFAIK you can, with a permit and of course after harvesting and letting the land dry for maybe six months.
Thank you, I have something like an improved HGB . Talked with the Notaris when we bought it. It seems nobody has the kind of right I have. Talked to real property experts also. It is all fine. But thank you anyway.
Hey Cam, Thanks for watching! Absolutely, the lawyer we used to audit the process who is based in Denpasar you can find at balilegals.com/ and the notary we used for signing our lease agreements was goo.gl/maps/GU5Va686J8jJ9tA5A
I can't recommend my broker and bank. They have been beyond painful to deal with. They funded us almost 6 months after they were supposed to which created all sorts of problems for us
We do have instagram but we very rarely post there anymore... I really need to get back onto that. It's instagram.com/roryandcasey/ we also have an instagram for the Villa if you wanted to follow its progress! instagram.com/villa.raava.bali/
Hey Rory and Casey, absolutely love this vlog, so helpful. I’m moving to Bali in the next few months ( I have an Indonesian fiancé) and we will look for land as soon as I get there in similar area to you guys. I’m a builder btw so happy to give advice or even occasionally look over your project. Thanks again legends
Stu
That's awesome Stu! Congratulations! Thanks for the offer we've actually got people who are doing that for us anyway 😊
If you need a good reliable trustworthy agent to look for land let me know!
Great information mate. I am in Bali doing my solo trip and realised that Bali is such a great place to rest and chill. I’m doing some travelling around over the next two months and will definitely keep an eye out on land and keep doing the research. Thanks for the video, and congratulations!
This was the most helpful video! Thank you so much. Can I ask what your other shortlisted construction companies were?
Awesome and super informative info, we start our journey looking for land end of October. Just wondering the zoning link website. I couldn’t see it in the comments section? Thanks guys and wonderful end product too
Unfortunately that website doesn't work anymore. There's no real quick way to check the zoning now without speaking to a notary as far as I know
Thank you for doing these videos… you’ve inspired my return to Bali.. I was lucky enough to have spent much time there in the early 1990s…
Great information Rory. Really thorough. Thanks for being so open and explaining everything so well.
Your vlog is very informative for people like me who are interested to live in Bali. I am Indonesian however thinking about going back to my homeland but have no idea how as foreigner be able to acquire land & build a home there. If you could show me the process & cost for each step would be appreciate it🙏🙏
If you want the full guide with everything I learned about building in Bali and all our vendors and suppliers it's now available in the video description!
Wonderfull content, great value !!
Glad you enjoyed it!
This a great video. The most informative I’ve watched.
Top marks.
Thanks mate! I'm a research freak so I figured the knowledge I found may as well be useful to other people!
Thanks Rory and Casey ( I am another Rory) - really useful information .
Glad it was helpful!
Great Video
Hey Rory, love this summary of the process to buy/build in Bali. My wife and I have always loved shooting across from Perth to holiday in Bali & often thought would be cool to own something but always to afraid to take the leap. You have really given me some food for thought keep us updated and great video
Thanks for watching! Honestly were a couple more months in now and the whole process has been a breeze. The hardest part in the whole thing is an Australian broker and bank dragging their heels, everything happening in Bali has been so easy. We're heading back in December so will be doing an update video then.
Great video!
Glad you enjoyed it
Hi Rory. Great video, thanks for sharing. All very clear and well explained, and my only doubt/question is regarding that 20% land tax you had to pay when you purchased the land. That's a big additional fee that I didn't know was part of the equation - is it always ~20%? Is that to be paid again on a yearly basis, or how else is the yearly land tax calculated? Thanks!
Thanks for watching! My advice would be to setup a PT PMA at the same time as you are getting land (I've since learned this is necessary to rent the villa eventually anyway) this will give you the ability to drop it to 10% tax. This is a one time fee that is paid on the overall lease agreement. I like to think of it kind of like stamp duty. You do need to pay land tax each year but its a very small amount.
Clear, thanks mate! @@RoryandCasey
Great informative video...do U have the real estate agent who sold you that piece of land please? My partner and I live in NY and prices here are unbearable...we love Bali and want to set up an Airbnb property to rent out and eventually retire ☮👍🏻
How much was that piece of land you bought and what size was it?
We used a local agent, just a guy who knows everyone in the community and knows which families want to sell land. It's a bit different from what we are used to in the west. The land was 3 are (300sqm) and it was 8mil idr/are/year. Land prices in Bingin have shot up since then but you can still get affordable land a bit further out.
Thanks!
Thanks so much! Glad you are enjoying the Channel!
Thanks for all the information. Do you have an option to extend the lease at market levels after 30 years? My concern is what happens if the owner doesn't want to extend your lease?
Yes it's in the contract that we have the right to renew at market rate 😊
Do you mind me asking how long you can extend for? @@RoryandCasey
@RodneyPatel-vj9rb our contract gives us the option to extend for another 30 years
Thanks@@RoryandCasey that's good to know. One of my concerns was I'd build this lovely home and then after say 25 years the land owner would take ownership of it.
Hey Rory. Great video. We’ve just bought land in Ungasan. So, this video was especially helpful. I look forwards to seeing your progress. Good luck with the build and your investment returns.
Awesome congratulations! Ungasan is an awesome central area! Good luck to you too
I read that for the PT PMA you must invest 10 billion IDR within 3 years ? So you need to build 2 villas ? Or invest that amount on the one villa ? If I am understanding it correctly
You have to have a plan to invest that much over that time. You don’t necessarily have to stick to that plan. So long as you can show that you are working towards it they don’t care. My advice i received is that my legal team don’t know anyone who has reached the target and there’s never been an issue. The law and the interpretation/implementation are often two different things in Asia.
Great info mate 👍👍
Glad it was useful! It was a minefield of bad or wrong information to get to this point.
@@RoryandCasey gotta start somewhere mate, just got back from Bali & spent time in ulawatu, l have a Bali mate who knows his stuff & he tells me, it’s the next big area in Bali. I will definitely be looking at doing what you guys are doing alittle down the track.
@@craigsutton592 Completely agree about Uluwatu, the entire Bukit is growing rapidly. It'll be Uluwatu and also Seseh/Cemagi beyond Canggu that are the next big growth areas.
@@RoryandCasey mmmmmmm food for thought mate hey 👍
@@RoryandCasey I’m following u guys now, l look forward to seeing a lot more content regarding the completion of you beautiful home.
Hi Rory, thanks for sharing :) I’ve just decided to build on two plots of land in seminyak and bukit to rent out or put on airbnb. Do you have advice or recommendations on finding someone local to manage property as opposed to going through a property management company?
Hey Sheila! Congratulations on the decision!
You can definitely find and hire someone local or even do it yourself but in that case you 100% need a pt pma as well as a lot more permits that the management companies already have. For me once I started to look into it the management company made sense. I’d be about $5k a year better off without the management company but for all the headaches I’d rather them do it. So with that said I can’t help with finding someone local to do it because I simply don’t know! I do know that it can be done. You can also go halfway with a management company where they will still manage the property but won’t manage the bookings etc. you’ll still need a pt pma but you won’t pay as high a % of the booking fees to them.
@@RoryandCasey thanks for the quick reply and this valuable information! I am 7-9 months for my villas to be ready so early days looking into this. Looks like your ahead of me with this research. So many variables to consider. I guess we just need to make sure we do everything by the book. I’m hearing of the government kicking westerners out because they are not following rental guidelines. Best of luck with your villa! You must be close to completion!
@@sheilahall9580 yeah 100%. I don't blame them. I want to make sure we are absolutely above board with ours even though it costs money to do so. Not worth risking that investment over it all.
Not long at all now! Mid July and it should be done!
Amazing! 🎉 Is there a way to connect with you both privately? 🙏It seems like I am also wanting to achieve the same as both of you but going down the multiple off plan villas route. I’m slowly looking to build a network of likeminded people all connected to Oz.
Absolutely! Easiest way is to message via the villas instagram page @villa.Raava.Bali I always try to answer as soon as I can there 😊
Great information! I was told that I needed to have my KITAS & PM/PTA in order to even lease however you’ve given me hope! Are you in Bali on a B211 visa? And to confirm if I worked directly with an owner, could I lease as well?
Obviously seek your own independent local legal advice. But you don’t need to have a Kitas or pt pma to lease land at least you didn’t when I did it last year. We were there on a tourist visa. The entire process was audited by our own lawyer in Denpasar so we know it’s all legal and above board.
Very informative video, I noticed the link to the zoning map does not work. Can you please recommend another?
I noticed this the other week as well. For some reason the website is down. I have tried to find an alternative without luck.
If you signed the contract with the owner of land/property for 30 years he can change his mind or selling this without your agreement, or can not give you extended after 30 years?
He can’t change his mind it’s a legally binding contract. Our contract also stipulates that we have the right to renew the lease for an additional 30 years so the owner isn’t able to change their mind on that either.
@@RoryandCasey appreciate for answer
Great vlog / information would love updates along the way even if they are verbal from Australia.
I’m researching to start this process myself.
Is there any risk to your leasehold property if the land owner doesn’t pay his land taxes in the coming years or is your land considered separate where those issues are concerned. Can’t find any info on that.
Thanks, keep the updates coming. Much appreciated.
I'll definitely be providing updates! Getting close to starting the build so I'll post a bit of the process with the builder at some stage in the next couple of months.
Great question about the taxes. Our lease agreement for the duration of our lease the land tax is our responsibility which is totally fair because it increases once you put a building on it. It's still not very expensive, I've been told it will probably be under $1-200 a year. I am under the impression that it's a pretty common thing to have written into the lease. Our independent lawyer confirmed that the notary had just written a completely standard lease agreement with nothing unusual in it.
Thanks for the info, I am shopping for land in Bali and I would love if you can give me the Facebook group links where you found realtors?
Thank You
Just jump on any of the local pages. We found our agent through the 'uluwatu community' facebook group. There is also one for almost every other area in bali
Impressive
Thanks for watching!
@@RoryandCasey my pleasure 😊
Great video. I’m actually looking to expand my prefab business there, and this was really useful information. As far as taxes go, do the land owners have to pay that every year? If so, how do we make sure that continues to be paid?
Glad it helped! As far as the taxes go, they do need to be paid each year and normally its the responsibility of the leasee (me in this situation). I'm not 100% sure of how I make sure that it's paid but my lawyer and accountant in denpasar is going to be looking after all of this for me but when the time comes I'll include it in a future video!
Not expensive at all . Residence land only around 100 to 150 thousand Rp which is 8 to 10 US dollars per year. Later you will get a letter from notaris and take that letter with you everytime you go to pay the tax in Bank BPD Bali. The price automatically on the bank system so should be safe. Always safe...So no worries
Congrats!!
Thanks!
Hell yeah!
Been a long time coming 😂
Hi Rory, Are you happy with your notary that you recommended? We are close to pouting an offer for a villa so we are looking for notary.. I googled your notary but it says temporarily closed"
I really liked my notary! I believe she is still open. I think she’s just moved offices slightly down the road. A friend is currently using her services so I assume she’s still active
Hello this is great, we are also on the path to buying a villa that's already running as a successful holiday rental. Can I have the name of the website you mention for return on investment on holiday rental? Thank you
Awesome! It's airdna.co and it tracks Airbnb data from any region in the world (you need to pay per region) but it's worth the money for being able to do the research
Hi! Thank you for the info! This is super helpful! I was told that we will need a PT PMA and KITAs to build and rent it out as a Air Bnb, do you know if that is true? And do I need to be there in person for any steps (like bank account)? lastly, if you have any good contact for land agent, construction, please let me know! :)
Yep that’s right you’ll definitely need those Legals done. I have an entire Bali villa guide available in the video description that covers everything we learned as well as all our contacts we used including legals, agents and contractors. Hope it helps!
Hi, thank you! i just bought the guide. Should I be expecting the guide soon? Thanks@@RoryandCasey
Thank you so much! 🙏 it should come through to your email you purchased with automatically within a few minutes of purchase. If you haven’t received it in a few mins check your junk mail just in case it’s ended up there 😊
Hi Rory,
Nice and informative thank you.
We are in the process of purchasing a lease hold villa off the plan.
We are not sure how we should structure it. Do we need to get a PMA? Or can we just purchase it in our names?
If you plan on renting it you’ll eventually need a pt pma. I’d get it out of the way early. I’ve heard rules are changing soon and it may be harder to get a pt pma in the future
Love this video, we are actually just starting this process, we actually stayed in the area last time we travelled to Bali and totally agree with you about the area. Can I stay in touch with you for your help? By the way how many years did you lease for and the price if you don’t mind me asking
Hey Dianne, that's awesome! Absolutely you can stay in touch! Feel free to message me on our villa's instagram page instagram.com/villa.raava.bali/ if you need any help or advice! I can point you in the direction of the agent we used to find the land who we trust and took care of us as well as notary's when the time comes.
We leased 300sqm of land for 30 years and the total cost was 720,000,000idr which is very much on the lower end in the area. I'm not sure even a few months later whether you could find land in Bingin that cheap. Realistically for good land you should budget between 10-14million idr/are (100sqm)/year. Most of the time you can negotiate leases between 25-30 years. If you are lucky and have the capital you might even be able to negotiate a longer lease. Just make sure you have the option to renew your lease when it comes time!
Great video! How much do you think you saved by sourcing the land yourself vs using an agency?
It's hard to tell. An agency won't charge you. They will make commission of the sale and that will be between the agency and the owner of the land.
I can tell you even sourcing it myself the same land was shown to me by different people and there was a 25% price discrepancy between the lowest and highest prices we were told by different people.
@@RoryandCasey wow that’s a considerable difference. Do you go into details in any video on what you actually paid in the end? I saw the one where you laid out the total cost but is there a breakdown?
I haven't made one yet. I am going to make one once it's all don't though. We are still going through costs of furnishing and permits for rental, management agencies etc so I want to be able to give a full picture once it's all done
@@RoryandCasey awesome. Thank you 🙏
Hi, great info thanks. Did you consider setting up a PMA? We are looking at options currently.
Also how did you find a contractor/project manager for your villa build?
I did consider it so we could purchase land freehold but honestly the value wasn't there for me. Land prices are pretty expensive freehold and I can get 60years of leasehold for less money most of the time and beyond that I'll be dead so I won't care.
We found our contractor by just looking at what was out there. We liked their designs so we went and had a look at a finished villa that was for sale by then and so met and had a chat and we just got good vibes. It's Bali Creative Development and they have made the process so easy for us.
hi Roy, thanks for your info, if in tourist zone you can rent for one day ect........and yellow zone monthly etc,,,,,,,,,,for example ,,,,, but most of the villas in canggu / seminyak are build in yellow zone accordantly to the map zoning link from badung.. how come they are renting the villas daily ? or something to do with air b&b ?
Tourist zone is easier to get a pondok wisata for daily rental but it's not impossible to get one for yellow zone. It's one of those situations where you need to just make sure you have the right person organising your permits
Thanks for your quick replay,, understand !!. And all the best for you guys building
Good luck with your project. According to Google, in the case of the sale of leasehold property, (Ham Sewa), the tax is the liability of the seller and, as he is Indonesian, it's 10%. Not only did you, apparently, pay the seller's tax, you paid another 10% on top. Did your lawyer confirm the 20% was normal? When you eventually sell and assuming you are still non resident, you will be liable for a further 20% on the proceeds.
It’s very standard for the buyer to agree to pay the tax. You’re technically correct. It is the sellers liability but if you don’t agree to pay it then you won’t get the lease. If you’re lucky the seller might go 50/50 but it’s normally only when they are getting above market value.
The 20% is if you are on a tourist visa. My accountant managed to get me only 10% though so I did end up only paying 10%
Can you recommend your account? Thanks for the great and practical information!
@@RoryandCasey Thanks for your reply. You are correct. The Balinese expect bules to pay their tax! You need to get your visa, residency, sorted out before you start your Airbnb renting. My understanding is that it is illegal for villa owning foreigners to rent out their villas unless they have the correct visa and other investment paperwork.
@@Alamanda1 yeah 100%. Though it didn't bother us. We knew going in there was going to be an expectation that the tax would be on us so we were budgeting for it all along. What you say about visa and permits etc is true as long as you are doing the management yourself. If you use a management company there's no requirement to have any visa at all! The pondok wisata will all be sorted by the management company but all money in and out will need to run through the management company in that scenario. If you're willing to go down the path of setting up a PT.PMA then you can do it all yourself. I ran the numbers and you are maybe a few thousand $ a year better off doing the PT.PMA but for the extra effort it would take I'm more than happy to pay the bit more and let a reliable management company take care of it for me.
@@RoryandCasey Yes, I agree my condo in Bali is handled by a management company. I formed a PT-PMA company in Lombok in 2002 to own my bar/restaurant which is on a HGB title. That's when the process didn't require Rp10M capital and was much easier to set up. Good luck with the project, it's coming on well.
Hey Rory...good video, do you need a KITAS or special Visa to do what you do ?
If you have a Kitas you do get some tax benefits but we've done the entire process on a tourist visa so far!
@@RoryandCasey thank you, so with Tourist Visa can lease property/land in Bali ? how long the max lease land/property with tourist visa?
As long as you are able to negotiate with the land owner. We have a 30year lease with a guarantee for an additional 30 years
@@RoryandCasey I promise.. last question, Do you pay tax? property tax ... sale tax ?
Yes to both of those but it will depend on a range of factors. That question is best directed to a local lawyer or accountant
Am starting to look for land in bali.. Can you give some suggestions for good quite regions but yet close to everything..
There are so many variables to consider to be able to give you a good suggestion. Bali is a huge island. I’d suggest visiting and exploring the main areas to see where you do and don’t like and then narrow it down from there! We chose the Bingin region because we liked being near the water and the chill vibes a perfect mix between Canggu and Ubud but what we like isn’t the same as what you might like.
@@RoryandCasey thank you for the reply back.. My wife and i are heading their in a months time will spend 2 months their to look around...
That’s the best way to do it! Decide whether it is to live or for investment. If it’s to live find your favourite spot. If for investment any tourist area will do well. Some will do better than others but a lot of it is to do with location close to tourist areas.
And if you ever have any specific questions about anything or areas ask away always happy to help!
@@RoryandCasey thank you.. Will definitely reach out am sure i will hit a road block somewhere...
Could the music be any louder!
😅 sorry.
bagus......
It is not expensive or overly complicated to open a corporation and buy freehold land as a foreigner. It is foolish to lease land and watch it depreciate to no value at all, while I and others (who did it right) watch our property investments double and triple.
I couldn’t imagine paying to build my dream home on rented land.
Very good one. I am doing the same in bali. Is there a way to meet or talk?
Hi Somesh. I’m sorry I don’t have the time to meet or talk to everyone who watches my videos. If you have specific questions feel free to message the villas instagram @villa.raava.bali and I’ll get back to you when I can
Excellent information. I do 'own' 1000 square metres of land, currently a ricefield (ex-Balinese fiancé). I would like to sell or transfer my right.
@@peteiovene9177 thank you. Is this statement based in new legislation? AFAIK you can, with a permit and of course after harvesting and letting the land dry for maybe six months.
Thank you, I have something like an improved HGB . Talked with the Notaris when we bought it. It seems nobody has the kind of right I have. Talked to real property experts also. It is all fine. But thank you anyway.
Hey mate, thanks for the vid, great info,do you have the c contact details of the lawyer you guys used?
Hey Cam, Thanks for watching! Absolutely, the lawyer we used to audit the process who is based in Denpasar you can find at balilegals.com/ and the notary we used for signing our lease agreements was goo.gl/maps/GU5Va686J8jJ9tA5A
Awesome thanks mate appreciate it.
Also what Australian broker and bank are you guys going through? My bank being painful
I can't recommend my broker and bank. They have been beyond painful to deal with. They funded us almost 6 months after they were supposed to which created all sorts of problems for us
Ah ok mate, Aussie based thou?
Yeah. Local Tassie broker and one of the big 4 banks
How did you choose your lawyer?
Mixture of research and recommendations from others who had done the same the same thing
Can you add the contact?
How do you mean sorry Paul? Like can you add to the contract?
@@RoryandCasey contact details of lawyers i m interested to do same as you did it
@@pauldanciu2578 ah cool. We used Bali Legals based in Denpasar. balilegals.com/
Hello I’d like to know if you guys have Instagram?
We do have instagram but we very rarely post there anymore... I really need to get back onto that. It's instagram.com/roryandcasey/ we also have an instagram for the Villa if you wanted to follow its progress! instagram.com/villa.raava.bali/