Nowadays, it is actually a little fortune to have property which you can rent. When most people cannot afford a house, paying monthly rent is always a good option. Through the monthly rent payments, your investment will soon pay off and you will guarantee yourself a new inflow of money.
If you decide to buy in an exotic destination such as Bali, your income will be tripled. At this point, you must be wondering how to afford property in Bali and how complicated the process is. Well, we have the answers to all your questions in this article.
So let’s get started! Here are 6 tips for you!
1. Think Carefully
We have to warn you before making this decision to think carefully about whether this is the right decision for you. Before making this decision, it is important to consider a few things.
Such as time spent for example. When you are a landlord you have to allocate a certain amount of time to it. This is a thing that brings you money like any job and therefore requires a certain amount of time from you.
Also, as with any investment, investing is a real lottery. Why? No one guarantees you that this will pay off. There are a number of unforeseen events that may affect it. Bali is a tourist destination and therefore you have to keep in mind whether it is well visited every year.
Also, here the location, as well as the price itself, can play a big role. If the location of your property is good, you will be able to increase the rental price of your property.
These are all things that you need to pay attention to.
2. Locations Of Your Property
As we have already mentioned, location plays a big role here. If you decide to rent your property to tourists, it is important that it is in a good position. So, if you decide on this option, explore the locations that are preferred by the tourists. Also, pay attention to things nearby, such as supermarkets, tourist attractions and good connections with public transport.
And if you decide to rent your property to locals, which is of course less profitable, and in that case, the location does not play such a big role.
3. Good Research
Buying property abroad requires good research. In addition, you have to research the location of your future property well, because if you buy a property in a good location that is well-connected, you will be able to raise the price of your rental. But there are a few more things you should know before deciding to take this step.
In addition, it is important that you research how much the workers who will maintain the hygiene and general well-being of the entire property will cost. You have to research what the salaries are in Bali for a cleaner, a gardener (if you have a garden on your property), as well as a property manager who will make sure everything is in the best order for your future guests.
Pay attention to the marketing itself. Which way you advertise your place will play a major role. Sites where you advertise matter, too.
Research the prices for one-night stays compared to other apartments or hotels so that you know that you will not either underestimate or overprice your business. And, we will agree, that neither is a good option.
4. Rules Of Purchase If You Are a Foreigner
Buying property in Bali is not as simple as it seems. Our advice is that if you decide to take this step, you should entrust your investment to people who are experts in this field.
Today, there are many agencies, websites, and agents that will help you easily get to your new property and will warn you about all the details you need to know.
Until 2015, in Bali, you were not allowed to buy property if you were a foreigner. Today, you can do it with the condition of ownership for 30 years, but also with an extension for another 20 years. Taking out a mortgage here is not an option for foreigners.
Therefore, study the laws well or hire professionals. If you are interested in where and how to get information and find the right people for you, click on the link and learn more.
5. The Road to Your Investment
To be honest, buying a property is not easy, especially if you’re shopping for a home in another country. If you impulsively decide on this decision, the path to your new property will not be easy. And we mean that literally. How?
When shopping in Bali, there is one golden rule in any research, and that is to check the road to your luxury villa, new hotel or apartment. Due to the very location of Bali, as well as the nature, roads are not built everywhere. In order to avoid additional costs, please check this out.
And what we have to warn you about is that it is not at all easy to build a road to your property here. There are certain laws you must follow, as well as a contract with your neighbors. And the very nature of the land can cause additional problems.
To avoid this, be sure to explore all the surrounding roads and driveways.
6. It’s tax time!
What most people forget is the tax, which you have to pay special attention to.
When buying, the tax in Bali is 10%. The general practice is to divide the tax between the former and the future owner. So everyone pays 5% to the government during this process.
When it comes to renting out your property in Bali, tax is paid every year.
This investment can lead you to a real small fortune if you do all your research well and invest your money wisely. And if you want to enjoy the beauty of Bali, we believe that you will not regret it if you move your life there. In any case, the decision is up to you, and we advise you once again that there is no room for haste here, but thorough research of every possible option.