Some basic rules to follow and here is some general advice:
Location is as ever of primary importance as certain areas still remain not fully developed and do not enjoy infrastructure such as good internet service and other amenities. The location also directly affects the type of visitor and different neighborhoods can attract different types of visitors. Example; currently the Bukit and Canggu are favorites of surfing fans. Whilst Seminyak and Kuta attract a more varied type of visitor and Kerobokan and Umalas remain favorite expat residential areas. Ownership can be achieved through a short or a long term lease. The longer the period of lease, the better deal you are likely to strike. Under Indonesian bali villa sales constitution, foreigners are not allowed to hold free hold title to any property. However a long period of lease is sufficient to generate sufficient returns on the original investment. Make sure to use the services of a well-established and registered notary. The cost is a fixed rate of 1% of the total value of the transaction. Foreigners can ask their notary to produce translations of all lease agreement documents for an additional charge. The amount also generates a tax liability of 10% of the total transaction value, and this is something to consider and negotiate over at the outset with the owner, whilst making your offer. A good notary will also carry out local searches and check to ensure the property does have the correct construction planning permission (IMB) and that all the land taxes are paid and up to date. A good notary will also check if there is any construction tax that due after the completion of building or whether they have been paid and settled.
It is vital to ensure the correct paper work has been obtained and currently for individual villas it is illegal to operate as holiday accommodation without being granted a “Pondok Wisata”, (Guest House) license. The local government is controlling the issue of these licenses in certain areas to protect the local communities and has stopped issuing licenses altogether for some zones. We strongly recommend that you seek professional advice from a licensed broker before embarking on this journey and look out for the current rules which are subject to change on very frequent basis. Also to shop around regarding the cost of each license and to keep in mind that each Pondok Wisata license is only valid for accommodation of up to 5 rooms and therefore in some case more than one license should be applied for. As you will now be technically running a business in Indonesia you will also be required to have a temporary stay permit, (KITAS), accompanied by a work permit which is an IMTA (Ijin Memperkerjakan Tenaga Asing). All these documents along with the Pondok Wisata license can take up to 3 or 4 months to obtain and the cost should be built into your investment program, using a well-known and licensed notary or agent to obtain.
Provision of good staff and inclusion of services can add value and attract visitors to your investment. Visitors generally will enjoy and wish to have good internet service and cable TV, some regular maid service, pool maintenance and gardener service. Inclusion of good staff not only will attract visitors but also ensure your property is well looked after and maintained. Depending on the scale of your investment, you may wish villa sales in bali to consider employing the services of an experienced villa manager too, assisting with routine supervision and quality control and also with marketing efforts.
Having come so far you will now need to continuously work on achieving high occupancy rates and this is an ongoing task using dozens of OTAs (Online Travel Agencies), and more and more these days by frequently using social media as a marketing tool. There is a lot of competition out there and you need to keep up with the seasonal factors too.
To get more information or read more about Complete list of Bali Villa Sales kindly visit;
Studio 1, Jl. Bidadari IIA,
Kerobokan, Bali - Indonesia
+62 (0) 81-338-929-300
info@myvillainbali.com
Skype: myvillainbali
http://myvillainbali.com/villa-sales/
