Don’t Splurge Too Much on Furniture or Appliances

Many foreigners that come to Bali looking to invest in real estate often do so with the intention of buying or leasing a piece of land and then renting out their property.

I encourage them to do so, especially if they’re looking at getting returns from the yearly rental market.

Why you may ask?

Well, the first reason is cost. Whether you’re leasing or buying the cost of acquiring land in a tourism zone is more expensive than in a residential zone.

But every year we notice the decline of good quality yearly rentals, which is due in part to the growing number of expats coming to Bali.

There is, however ample opportunity to get solid returns out of your investment as long as you follow a couple of very simple steps.

1. If you’re looking to build and then rent, our advice would be to first identify the general area(s) that you like in Bali and then from there look into specific areas that you see expats living in.

Remember, there will be practical reasons for expats living in certain areas but more often than not it will have to do with close proximity to schools, shops/ restaurants and other basic amenities.

Once you have filtered this down to a specific neighborhood or even a street then naturally it becomes our job to find the piece of land that fits with your requirements.

2. It’s not in your interest to spend too much money on the cost of finishing or furnishing your villa.

This is where we at Seven Stones often get strange looks from our clients.

You see, in their minds they are pragmatically thinking that surely if I spend more on finishing and furnishing my property I will be able to charge more for it.

But this is where Bali may be a little different to where you’re from when it comes to real estate.

In Bali when we do property whether they are for rent or for sale, we will primarily look into the size of the land, the size of the build, the number of bedrooms, the location and the kind of views that you can have from the property.

We generally do not take into consideration whether or not your kitchen counter is made from marble, or granite or a simple polished concrete.

Nor would we pay too much consideration if your kitchen is equipped with an Italian brand that was imported or from a more standard brand.

That’s just the way it is here and knowing this can save you lots of money when you’re building your property.

We definitely do not suggest you should try and save money on anything structural, as all properties in this tropical environment demand the highest of structural standards able to withstand the many challenges that buildings here have to deal with.

Therefore, build a strong structural property yes, but then don’t go jumping in to acquiring the most expensive furniture or electrical appliances. We’re not suggesting to go as cheap as you can but there’s also no need to go top of the range either because when it comes to renting or selling it just won’t influence the price and market value.

You may want them too, you may think they should but the bottom line is they won’t.

First published on Gapura Bali

 

Seven Stones Indonesia is a property company headquartered in Bali, Indonesia, with a mission to help people who are interested in buying and selling residential and commercial real estate.

If you’re thinking about property, ROI, capital gains or lifestyle investments in Bali, Jakarta, Surabaya, and Indonesian’s Eastern Islands and need some friendly advice and guidance then why not email hello@sevenstonesindonesia.com or check out Seven Stones Website | Seven Stones Linkedin | Seven Stones Facebook

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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.