Investing in Bali, good step or?

Probably a bad idea!

see my comments here
https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4335562

When I was in Fiji last year I did a little research on buying a freehold property near the beach.

Some good. Mostly bad.

+ Exchange rate was fantastic.

+ Free hold property was in fact near the beach and Nadi airport and thus enticing

+ Beach looked beautiful

– Some parts near the area had a real 3rd world feel about it. You know, steel bars over windows, stray dogs, rubbish scattered by the road side, roads in serious disrepair.

– Seriously……….how was I going to keep a shrewd eye on the property in the South Pacific?

– I got the feeling that if the government suddenly decided freehold property to foriegners was a bad idea then they would simply take the property back and a "Bad luck to you sir. Come again".

– Cyclones have been known to sweep through Fiji. Insurance was difficult interpret.

– Skilled property manager issues- No bank in Australia was going to borrow me money to buy the house. So cash sale only.

– From memory it was still going to cost about F$300,000 to buy a house there.

– Tax implications I simply didn't understand.

– I read the paper over there daily and in the employment section, wages were terrible. Even professionals were being offered very low incomes. Who's going to rent your property out at a decent rate to cover your holding costs?????

– Touted as the "Next Hawaii". But I just couldn't see it.

Sorry. Too many negatives for me. I appreciate different geographical area but there would be similar international issues to overcome. Good luck. 

I'd suggest you do research about the real estate policies and laws in Bali and check out the implications that it'll have on you.
Remember that they will be very different to the Australian context.

Also, make sure that you do your due diligence and ensure that it's actually a profitable investment!

The South Pacific is beautiful and enticing, however it is a graveyard of expatriate entrepreneurs.

We lost everything there ourselves due to corrupt officials, so speaking from bitter experience.

Coconut Govts change the rules anytime they like, forget democracy there, and well placed officials
can take anything they like one way or another, or win by attrition.
The systems there are setup to maintain financial control of locals and even moreso expatriates.
Play politics if you dare, but influential locals can extinguish your visa with a phone call.

Cheers
thecrest

We didn’t know how bad it was, and accurate information was difficult to get.

There was no forum at that time.

cheers
thecrest

Thank you Paullie we have recovered and then some, thanks to the motel industry, family n friends, the Forum and forumites and all their combined info and help by posting, PropertyInvesting.com mentoring program, and a lot of hard work, and the democratic system and abundant opportunities Australia has to offer.

Cheers
thecrest

James in the interest of all of us why not post some actual numbers on some real deals.

Cheers

Yours in Finance

Rentals for starters.are very lucrative. Where I am located a 250k villa can yield 2-300usd a night.

Your really not helping yourself James, your coming on here saying invest in Bali, yet you are afraid to provide some rationale to tell us why? 

Cheers, Ivan

yep, i have done a few trips to Bali too. Like Glaucus, i was offered an opportunity 15 years ago to 'get in' – land on Bukit Peninsula with fantastic ocean/mountain views.  I didn't at the time because of concerns about the land tenure system (James would be able to clarify, though to my understanding non-Indonesians can not own land, but only get a long term lease).   However, my Kiwi mate did get in 15 years ago, built a beautiful villa (all up under $50K) and today values it at $1mill.  As James says, i also heard Kuta now has some of the most expensive commercial land in the world per sqm (the peak before the bust? Savvy investors would be selling out perhaps?).  Good luck with it James.