Number 7

ENSURE THAT YOU DEAL WITH EXPERIENCED, REPUTABLE PROPERTY PROFESSIONALS

There are literally dozens of real estate offices in Bali - the vast majority having sprung up in the last year.

When it comes to buying property in Bali, there is no substitute for experience and a first-class reputation, one of it is Elite Havens.

Number 8

DO YOUR HOMEWORK

Once you’ve found something you like, whether it’s land, an “off the plan” villa, a place in a managed estate, or an existing free-standing home, you need to undergo a due diligence process guided by a legal professional.

Due diligence looks at the legal aspects of your purchase - from the most basic considerations such as whether the vendor actually has the right to sell the property, through to tax implications, licensing requirements, government fees and other bureaucratic factors.

There’s more to due diligence than just the legal details.

In the case of an existing house or villa, you should also satisfy yourself that you’re aware of the physical condition of the buildings; the relationship with the banjar (the local community council); access to

fresh water; electrical systems; drainage and waste disposal systems; noise or other impediments to peaceful living; security issues; and existing management contracts.

In relation to land, you’ll want to know about road access; sources of clean water drainage; soil stability; potential site works problems; building restrictions; relationships with the neighbors, farmers, and the banjar (banjar is the most little tradition governance in Bali, this is a society of people per village, there could be 5-10 banjar in one village); and commercial or govern mental developments planned for the area that might impinge on the property.

Number 9

GET INDEPENDENT ADVICE

Get independent advice before committing to purchase. Often times it’s best to seek legal counsel to get familiar with title options and legal mechanisms for purchase before one chooses the ideal property.

Elite Havens can provide you with suggestions, based on our experience on:

Individuals and firms who can carry out the due diligence process on your behalf

Reputable notaries licensed by the Indonesian government to undertake real estate transactions

Independent legal and investment advisors

Experienced and trustworthy contractors and builders

Number 10

CONSIDER THE BENEFITS OF A PROPERTY MANAGEMENT COMPANY

If return on investment or high service levels, is important to you, a professional property management company such as Elite Havens’ associate firm, BHM adds considerable value to any property.

A property management company’s responsibilities can be divided into two major functions - Operations and Marketing & Distribution.

The operational aspects of managing your home include staffing, accounting, training, local relations, guest hospitality, maintenance, security, among a variety of other tasks. This may sound easy but it’s not.

Even more demanding is the Marketing & Distribution function. This involves using direct promotion and variety of 3rd party agents to fill your villa with paying clients. They also need to be skilled in PR, and online and traditional advertising.

In selecting a management company, especially if it is tied to the purchase of a villa within an estate, you should look for a company with a proven track record in promoting multiple-room accommodation (a specialty market in the travel industry’)

as well as the ability to organize, staff and deliver service to agreed standards. Promises are easy to make; fulfilling them is not always easy. Look at management contracts carefully to determine what control you can exercise over the management company once it starts working on your behalf.

A purchase takes a relatively short time, a management relationship lasts for a long one. Examine your options carefully before entering into a relationship.

Reference: Elite Havens

Bookmark and Share

Related Investment Post