West Australians investing in Bali Property
Sunday, 03 January 2010 00:00
Source: The Sunday Times
A GROWING number of West Australians are investing in Bali property, according to John Garland, of John Garland International.``The number of people, particularly West Australians, purchasing property or purchasing land to build has increased by an enormous amount,'' Mr Garland said.
``People are seeing it as the alternative to having a property down south. Where traditionally they would have owned a property in Yallingup or Margaret River, they are looking to own a property up there which can be staffed all-year-round at minimal cost, and the property is maintained.''
Dean Rummer, of Crawley, bought a villa through a syndicate five years ago, recently selling it to a friend.
``We were real Bali fans for many years and obviously we were presented with an opportunity, and it's something you keep in the family,'' Mr Rummer said.
`` I have a five-year-old and she will end up with it and take her family up there.''
Mr Rummer has subsequently bought vacant land in Nusa Lembongan, 30 minutes from Sanur, accessible by boat.
John Garland International is selling the properties, with two remaining lots of 745sq m and 820sq m priced at $355,000 and $385,000 respectively.
According to Mr Garland, Nusa Lembongan is one of Bali's hot spots, along with Balian-Soka, Canggu and Bukit.
``The blocks are based on a little island just off the coast of Sanur, so you can think of it as a comparison to Rottnest,'' he said.
``It's one of the hot spots in Balinese property. There is limited property there, but everyone is talking about Nusa Lembongan.''
Perth families have embraced Nusa Lembongan as a desirable holiday destination, with its reputation as one of the safest areas in Bali.
There are three options for foreign purchase in Indonesia, including leasehold for temporary ownership of land, freehold for ownership of land, requiring an Indonesian-based nominee, and corporate tenure through purchase by a foreign investment company incorporated in Indonesia.
The standard system for purchase is a 100-year rights of usage, with 25-year time periods that require renewal at each period.
Mr Garland said that over the past five years the Indonesian Government had been fine-tuning the ownership process.
``You've now got experiences where Perth solicitors have moved up there and they're operating consultancies, with Indonesian lawyers who aid in the transaction process,'' he said.
According to Mr Garland, the company has significant experience with international transactions and can connect clients with Bali-based solicitors, architects and builders.
Indonesian-based Elite Havens offers property management and can sell vacant land, villas, villa estates and development sites throughout Bali -- such as a one-bedroom furnished villa priced at $528,000 in Canggu with ocean views and an open-plan living area overlooking a pool, situated minutes from Seminyak.
The Elite Havens website also provides information on legal and taxation requirements for foreign investors in Bali, tips for buying and details of the many properties on offer.