Last month we have seen that Indonesia’s property sales growth is expected to accelerate to 10-12 % this year from 7-8% last year. This means it's time to think about this year's investments. As we’re starting the year hopeful and sure of growing investments, we thought it’s time to see how we can help you evaluate your current position and see how you can benefit from the growing market! Let’s first take a bit of time to contemplate last year. Have you been renting, selling or buying a house in Bali? Would you like to grow your income, assure your retirement and/or grow your investments? Then it’s time to think about all the current options on the market. Contemplating all of the options on the market it is a smart and wise thing to do, and you should always consult a professional before making any deal.

Indonesia's property sales growth is expected to accelerate this year to 10-12 % this year and new amendments to ownership regulations could impact your situation! This month is filled with property news. Before we get into that we would like to take the time to wish you a happy and prosperous 2016! We hope to be at your service as we have continued to be in the last 10+ years. With that out of the way let’s get into the more interesting part: On Monday 18th of January, Eddy Hussy, the chairman of property industry group “Realestate Indonesia (REI), stated that Indonesia’s property sales growth is expected to accelerate to 10-12 % from 7-8 % last year. Hussy told reporters in Jakarta that the improvement in economic growth, the implementation of government stimulus packages, combined with infrastructure development will help rise sales the year.

The main factor is the high possibility of decreasing interest rates in Indonesia during 2016. The positive liquidity caused the Indonesian banks in Indonesia to stop the policy of high interest rates. Only about December, banks will be very keen to offer high interest rates to meet the end-of-year incoming funds. That did not happen this year. This proves, banks have ample liquidity. The Bank of Indonesia also issued two policy strategies that are sure to have a positive influence in the property market. The first is the abolition of the regulation for multi level Loans To Value, for the first house, second house and more. As the reader may recall from our article last year (link above), this regulation is one of the major factors leading to the decrease of the property market in 2015. Now this regulation has been revoked. Gone for good. In consequence, domestic buyers will be encouraged and more active again.

How do you know whether a renovation is a good investment? Well, our experience, statistics and research shows that... -when renovating a house, the basics are the most important. If you have a leaking roof, or broken drains, people will not likely be very interested in your house- not even when you have a beautiful kitchen and/or bathroom. Make sure the basics are fixed and solid! -you really need to consider the value you will receive from the project of renewal over any cost recovery that may be available from sale. Research local real estate guides to determine which projects are most likely to pay for themselves. In Bali, new home owners love a pool! Adding this to your villa project will dramatically increase the total worth of your property. -it pays to look at the area and its landscape, creating a unique garden atmosphere in a semi- concrete area will increase your worth like nobody’s business. Integrate beautiful architectural touches in your renewed living area (like adding a Javanese style ceiling) will give your villa the uniqueness and cozy atmosphere buyers might like. Be careful not to go overboard with wanting to be unique: if your house is too one of a kind it might be difficult to appeal to the general buyer’s market.

Paying Property tax in Bali… do I really have to? In our chronicles of experiences with clients in our office, this one really needs some attention. It’s one that has a lot of mystical stories around itself, or is the always ‘forgotten’ duty that only matters when it’s too late. Especially as a foreigner living in Bali, you may not be aware of the different tax systems that are in place. You may have your ideas on how the islands are run, and somehow paying taxes never really crossed you mind. Or, what also happens is that people think that it’s ‘not really necessary’ as ‘they will never know’. However we find that in our office the clients that we educate on this matter are simply not aware of the taxation rules that apply when buying and selling a property. Another tax they are not aware of is the annual property tax.