Capital Appreciation And ROIs In Canggu

Real estate investment Bali
Real estate investment Bali
Image by Timur Kozmenko on Unsplash.

Let’s be honest, there are some fantastic opportunities for real estate investment in Bali. The big question is where is best. I guess that comes down to personal preferences but if you’re looking for an investment that will provide you with strong capital appreciation, maybe even an income, Canggu is well worth a look. Just be aware that those in the know don’t call it Canggu anymore … it’s way more happening than that. Now it’s called The Guu!

Capital Appreciation

Time for a quick reality check; the days of being able to buy a plot of land and be confident about doubling your money within 2 years are over.

Development has been high, the market has become more sophisticated and we are now witnessing a natural stabilization across the board.

But don’t take this the wrong way! Prices are not falling and the bubble has not burst! Instead what we are seeing are more savvy investors playing the market. And the reason they’re savvy is because they’re generally more realistic and looking for strong returns based on capital appreciation, not based on pipe-dreams and 10 year-old third-hand anecdotes.

That being said, all indicators are pointing to Canggu as a place to consider for strong appreciation in the foreseeable future, which is why it’s high on our list of preferred locations.

Return on Investment

Historically, Seminyak was the no-brainer choice for those looking for a beautiful holiday home in a fashionable area that provided a strong return through holiday rentals. This is still possible, but it might take you a while and you might have to invest a lot more than you originally planned for to realize that dream. Unicorn tears might be easier to source. So get smart and seriously consider other areas, like Canggu.

The Guu continues to enjoy growth in tourist numbers and occupancies. Excellent cafes, warungs and bars sprout like mushrooms! Some of the best wining and dining can be had here and it won’t cost you a tattooed arm or leg to indulge. It’s definitely hip, it’s certainly chic and has it’s own very groovy community, which we’re delighted to be a part of. It’s also far enough away from Seminyak to embrace the tranquility, scenery and legendary lifestyle of the Island of the Gods.

If you plan to maximize your ROI from an investment in The Guu, we suggest you look for well-managed properties with solid financials, good reviews and repeat bookings. But in so doing, please be aware that laws, regulations and licenses are critical considerations these days. You can’t just set up shop and bribe your way to a little pot of gold any more. The bottom line is you definitely need the right license if you’re looking for a return through holiday rentals. And that license is called a Pondok Wisata.

If you have one, great! It means you can operate your villa as a rental business. If you don’t and you operate a villa business for holiday rentals, then it’s not so great! You should be prepared for fines and even possible closure if you don’t get things sorted in a timely manner. The taxman cometh and he will find you!

Our advice is to always do business by the book and if that’s also your approach, you’re half way there and you’re going to love being a part of The Guu!

Whatever you’re looking for from your investment our trusted team of specialists love The Guu and are on hand to provide you with local knowledge, responsible market advice and a genuine service to help you find your perfect property. Give us a call.

If you’d like more information on where to invest in the Bali real estate market, get in touch with us today at hello@sevenstonesindonesia.com

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.