Бутиковая недвижимость
с доходностью выше рынка
с доходностью выше рынка
Frequently Asked
Questions for Investors
Welcome to our page where we’ve gathered the most frequently asked questions from our investor clients.
We understand that the process of investing in Bali real estate can raise many questions, so our team has prepared detailed and informative answers.
Here, you’ll find all the essential information on key aspects such as tax issues, legal procedures, profitability assessments, and exit strategies.
No, throughout the entire lease term, no one has the right to claim your land. This is secured by the agreement with the landowner.
The notary fee for processing the transaction is typically 1% of the transaction amount and is paid by the client. Each developer may have their own terms for finalizing the transaction.
Unfortunately, no.
However, the Indonesian government is currently discussing possible options for long-term visas (up to 5 years of stay) for those who invest in real estate or have substantial funds in a bank account in Indonesia.
No, most developers do not allow changes to the design and layout. Altering the interior of a property in a large complex may prevent the management company from guaranteeing the income outlined in the initial financial model.
Some developers offer a choice of 2−3 color schemes for the interior, but full changes to the finish and layout of the villa are rarely allowed on the market.
Yes, absolutely, 75% of our transactions are completed remotely.
There are two options for signing the deal remotely:
- We can use an electronic signature through services officially recognized in Indonesia (some of which may be paid).
- The notary can prepare a Power of Attorney (PoA) document and send it to the client via email. The client signs the document with an electronic signature and sends it back to the notary. The transaction can then be finalized at the notary’s office. All contracts will be in the client’s name, with only the signing authority transferred.
Initially, the following documents are signed:
- Deposit agreement, reserving the apartment or villa.
- MOU (a draft agreement can be obtained from the broker).
At the transaction stage, the following are signed:
- General agreement, which includes the unit specification and payment plan for installments.
- Property management agreement. All contracts are notarized by a licensed notary.
After construction is completed, the following are signed:
- Project completion certificate.
- Notarized sublease agreement for the land plot (transfer of rights).
Yes, investors can exit the project during construction.
This is one of the investment strategies: the investor enters the project at the off-plan stage (when pre-sale prices are most favorable), waits 6−12 months for the construction to progress, and then exits the project before completion through the transfer of ownership rights.
The choice of strategy should be clarified with the client during the qualification stage, as this will influence the documents prepared by the developer.
Depending on the strategy chosen by the project’s management company, there are two main ways to distribute income from the rental of acquired property:
- Often, management companies opt for the "path of least resistance" and use a pool system (all project income is pooled and distributed according to the value/size of each unit). This system is less favorable for an investor with an expensive and well-rented unit, but more beneficial for the owner of a cheaper and less profitable unit in the project.
- A more advantageous option for the investor is the individual management of each unit, with the operating expenses of the complex shared among all units. In this case, maintenance costs are reduced, and the investor receives transparent reporting and the income they initially expected when investing.
Yes, we not only assist in selecting and purchasing investment properties but also support the client until the moment they exit the project and reinvest in the next one.
If you decide to sell the villa within a year, you can transfer the rights to your contract to another investor. In this case, you will need to pay 0.5% of the transaction amount. All expenses, including tax costs when exiting the investment, will be included in the financial model.
For a resale, the taxes are distributed as follows: the seller pays 2.5% of the transaction amount, and the buyer pays 5%.
Yes, all the data is verifiable and calculated based on publicly available sources.
The Average Daily Rate (ARR) and occupancy rates are based on data from similar villas in the nearby area, sourced from Airbnb statistics.
This information is presented in a study that analyzes all villas in the area, both for sale and for rent. The study covers more than 32 parameters for each property, including:
- Number of bedrooms
- Villa and plot size
- Availability of complex infrastructure, private pool
- Cost (excluding VAT) and cost per m²
- Lease term
- Distance to the beach
- Area
- Average daily rate (over the year)
- Occupancy rate
Additionally, the calculations are based on a methodology using real data. The forecasts also consider the experience of the management company, which manages 250 villas in Bali and has actual data on their performance.
Choosing the best investment property is arguably the most crucial step in the entire process.
It’s important to understand the investor’s budget, expectations, and then select the right area, project, and unit type.
Next, analyze the occupancy rates for all types of units in this price range and area of the island, and only then make an investment decision.
This responsible and thorough approach is what sets our company apart in the Bali market.
Yes, such a risk exists. Bali is located in a seismically active zone, and there is a possibility of earthquakes, floods, and tsunamis.
The most recent and strongest tsunami in Bali occurred on Sunday, December 26, 2004. An underwater earthquake in the Indian Ocean triggered a tsunami that became the deadliest in modern history. The magnitude of the earthquake was estimated to be between 9.1 and 9.3, which is an extremely rare occurrence.
It is important to note that in the last 100 years, no buildings in Bali have collapsed. To prevent structural failure, many construction companies use tiled foundations and reinforce all load-bearing structures.
There is no risk of our projects not being completed because we focus on the redevelopment of already constructed buildings. The project has already been purchased by our company, and we are ready to transfer ownership to you.
In the renovation contract, you can review the stages of work, which we have detailed as much as possible for your convenience.