Bali Real Estate — Past, Present, and Future according to a top Bali real estate expert.
Twelve Year old Pt. Bali Affordable Lifestyles International is one of the oldest and most successful Bali Real Estate companies. They manage 160 staff including those of PT. Bali Luxury Villas.
Their Bali News and Views blog is one of the most read in Asia with over 1,308,000 pageviews.
They are one of the top foreign, expatriate real estate experts in Bali.
Second Best Time to Buy Bali Real Estate this Century:
Their president/director Lawrence Bellefontaine believes that due to the first correction in Bali real estate prices in modern history “that now is the second best time to buy Bali real estate this century”.
Past History of Bali Real Estate Prices:
Fifteen years ago after living in Bali for five years Bellefontaine predicted that after the fall of the Suharto Dictatorship that foreigners would start to buy Bali real estate and coined the phrase “Bali was Hawaii 30 years ago”. He believed foreigners would start to invest in Bali as they did in Hawaii 30 years prior, driving prices through the roof.
“Bali was Hawaii 30 years ago”. Lawrence Bellefontaine, 6/2000
Long time Bali expat friends and associates said he was crazy. “They would never invest in Bali real estate as there were too many problems”. Years later, they admitted that he was right and they missed out on the best real estate buying opportunity of their lifetimes.
Before he started recommending Bali real estate he did research on past real estate prices in Sanur, the first resort area of Bali and at the time the most popular with expatriates.
He asked many knowledgeable locals what prices were selling for 20 years earlier of various types of properties and what the current price was. The statistics were shocking. The average increase per year of similar properties was an unbelievable 20% per annum for the previous 20 years.
That was virtually with very little foreign buying.
So why did prices increase so much?
Because the population of Bali was constantly growing rapidly.
In regards to the supply of Sanur land as Mark Twain the famous author once said “”Buy land, they’re not making it anymore.”
“”Buy land, they’re not making it anymore.” — Mark Twain.
Whenever you have an investment where the supply cannot increase and demand is guaranteed to increase it will automatically increase in value.
The first property he recommended to an American couple who wanted absolute beachfront property in the year 2000 was only 10 million rupiah (around $1,000) per hundred square meters. The same property is now 400 million rupiah per hundred square meters, almost a 4,000% increase in just 16 years.
“4,000% increase in just 16 years”
A few years later, gaining confidence in the market he began to investigate the possibility of building and selling villas not only as a vacation home, but also as an investment. Owners could enjoy their Villa several months a year and rent it out for positive cash flow plus appreciation. He coined and trademarked the term “© Bali Luxury Villas” which many people have copied over the years.
His first three-bedroom 550 m² Bali luxury villa on the border of the Bali Hyatt hotel with private swimming pool sold for $146,000. It is now roughly $350,000 a 100 % increase in 14 years.
Years later, after building three complexes his clients include the former director of S/E Asia General Electric and Ritz-Carlton and many other VIPs plus sophisticated investors from around the world.
Bali Bombings Cause Slow Down:
The road has not been easy for Bali real estate. Several times in the past demand has dramatically slowed down and stopped, especially after the horrific Bali bombings of 2002 and 2005.
At the time in the days following the deadly 2002 bombing he was flooded with emails from people wanting to sell and also buyer’s believing prices would drop dramatically.
At the time he said “Bali real estate prices will not drop because Bali is still Paradise and investors have short memories”. He was right. Sure enough, his Bali luxury villas did not drop in value. Although they did stay level for a year or two at the same time the rest of the world was enjoying exponential growth in real estate.
“Bali real estate prices will not drop because Bali is still Paradise and investors have short memories” L. B. 2002
In 2007 on his Bali Paradise FM “Bali News and Views” radio show and in seminars Lawrence issued a strong sell signal for United States real estate. He believed it was vastly overbought and was ready for a serious real estate crash. Most people thought he was crazy. Thereafter prices fell as much as 70% in places like Detroit and Las Vegas.
In recent years, he warned about places such as Singapore, Hong Kong and even several Australian cities which have had downturns.
At the same time he recommended other markets such as Vancouver Island, Canada which he personally invested in and has almost doubled his money on since 2008.
Scarred of Bear Market:
Bellefontaine says. “three years ago I loss enthusiasm with the Bali real estate market because it’s had the same type of exponential growth that occurred in America before it crashed with 20% to 30% per year in 2013 and 2014.
He almost totally retired and then something happen to change the market around dramatically in 2015.
Bali Real Estate Present
Lawrence believes that this is the second best time to buy real estate in the 20 years that he is lived in Bali and is putting his money where his mouth is by instituting new real estate broker websites to list the best bargains available.
He recommends anyone entertaining purchasing in Bali come to one of his free seminars to learn everything about buying here, including laws, regulations and how to purchase the best deals.
At Lawrence’s seminars the following topics will be discussed:
· Past, present and future of Bali real estate
· Why this is the second best time to buy this century
· Where are the best locations in Bali?
· What type of properties will offer the best investment potential?
· How to control properties for more than a lifetime under Indonesia laws.
· How to avoid legal problems and make sure the property is solid.
· Low cost properties with Villa starting as low as $120,000 for three bedroom 650 m² Villa with private 9 mtr. Swimming pool.
Schedule of Bali and Jakarta Seminars are as follows.
· Thurs. Aug 18th — 2:30 pm — 4:00pm –Bali Emerald Villas Meeting Room-Sanur
· Sat. Aug 20th — 10am — 11:30am –Bali Emerald Villas Meeting Room-Sanur
· Fri. Aug 26th — 1:30 pm — 3:00pm –Bali Emerald Villas Meeting Room-Sanur
· Sat. Aug 27th — 10am — 11:30am –Bali Emerald Villas Meeting Room-Sanur
· Thurs. Sept 22nd. — 6:30 pm — 8:00pm –Le Meriden Hotel -Jakarta
· Sat. Sept 24th.– 10am — 11:30am — Le Meriden Hotel -Jakarta
Limited Seating: Seating is very limited for these free seminars so please make reservation at our office at 62–361–284069 or mob 62–812–381–4014 or email email@example.com