Realestate

[Vick]

Hi all,
Is real estate investment in Indonesia,yield good? Is it worth it?

 

[Balifrog]

Google is your friend....

Location, location, location !

 

[scouser59]

Property here is "joke" construction ,be prepared for monster maintenance if your thinking to buy .

 

[Samoerai]

Hi all,
Is real estate investment in Indonesia,yield good? Is it worth it?

The real estate is of course a good investment in Indonesia.

However, there are some things you should know keeping in mind what your investment horizon is (= meaning the period in which one can invest available capital without having to use it for other things at a certain time).

If I say buy low and sell high. People always say "yes of course", but they never do.

I am always amazed how people buy in general. Mostly they follow other people.
E.g. now, a lot of people buy gold or bitcoins. But these commodities are already at a high price level.

Same for the housing market. Now, the PIK and BSD areas are very hot.
But the prices are very high.
To invest in those areas, you are too late.
Same for the Bekasi area, where all the new industries are located.

Buying apartments or houses in Jakarta?
I would not do that, with all that will happen in the long run about the effects of climate change on this city.

Then one should also know that investing in apartments or houses; these have totally different dynamics. And different prospects and buyers.

Then also check the trends in real estate:
1. Disneyfication of perumahans (themed housing clusters)
2. Apartment buildings attached to malls for easy access to the mall

Regarding 1. There are a lot of new perumahans outside Jakarta where the prices of houses are still low, but with a lot of long term profit prospect. Check out West-Java.

And that is what investing is all about.

 

[jstar]

real estate investment in Indonesia

It’s like asking where to buy in the US or Europe. This place is huge and there are some many factors to consider….

 

[MamangDudul]

One of the first questions would be if you can even buy (well, iam sure you can pay for it) and own it under your name.

 

[Bad_azz]

We just invested in a property, with the land.
We paid double the price for a third of the size of the place we have now (we bought our first over 10 years ago & apparently it is worth way more than we paid for it but we don't intend to sell).
The new place is next door.
As stated- location, location, location.
We live about 15 minutes ride outside the centre of Bandung and it is a thriving city, it is a location that Indonesians flock to for long weekends and holidays. The property market seems to be consistently good here with lots of new builds going up and selling well.
I would never invest in the Jakarta area, because it doesn't seem to have a long term future, floods and relocation of government etc. plus it is an unattractive place.

 

[pantaiema]

Hi all,
Is real estate investment in Indonesia,yield good? Is it worth it?

Investing in freehold landed property in strategic locations is very profitable, especially when you own insider knowledge or have influence to the development of forthcoming infrastructure developments like roads and amenities.

A prime historical example of this is seen in areas like the Golden Triangle, encompassing Thamrin, Sudirman, Gatot Subroto, Rasuna Said, and Mas Mansyur. In the past the people who own property/land even in seemingly inconspicuous lanes in those areas become a sudden Indonesian billionaires as their small dilapidated house with the land they inherited from their grandparents get acquired by big businesses, offices and residential district such as SCBD, Mega Kuningan, Kuningan Persada.

Another example is to acquire land in tourist hotspots like Seminyak, Kuta, and Canggu in Bali,

Additionally, there's the case of land surrounding the Indonesian New Capital (IKN). A striking example is the acquisition of 340,000 hectares of land in IKN, as reported in here

Are you ready for Jokowi-Prabowo 2024?

.. it wouldn't be surprising to speculate that the funds used for the acquisition of the land at a favourable price, bypassing the tender process, were obtained by simply returning a portion of the loan they received from the bank. I don't understand what you are saying here. PS got a bankloan...

www.expatindo.org

It's important to note that in the past, there have been numerous cases of multiple certificates being issued for the same properties/lands. Engaging in legal battles, potentially up to the Supreme Court, might result in losing both your current property and incurring additional financial losses. However, it's worth mentioning that many people own properties in Indonesia without encountering such issues, particularly if they purchase them collectively from developers, doing a meticulous due diligence.

 

[snpark]

All depends on your personal and family requirements
If you are married and plan to settle here

Buy land. Build your own house to your own western spec

But if you are single etc? Indonesia? For investment. No way. Unless it's real income producing. Like a kos

That's my advice. That's what I have. In Bali of all places. The rent has tripled since covid and we already broke even on construction cost and now is all profit and now on the 4th one building.

Kos is easy to build. 2 stories. 20 rooms. No need even to furnish. We did concrete shelves and a glass shower and enclosed toilet.
Big communal kitchen Pool.
Land is 40 year lease

Smallest room is 10jt a month. The 50sqm "apartment" with private kitchen is 20jt a month!!

Full and waitlist for rooms. The apartment rented for a year

2+3 already in operation
4 opening soon

That's a good easy investment. Runs itself. Will always be full. No need to build a $5000 week big villa harder to fill clean maintain etc

Just my view and experience

I've posted before about buy apartment in Jakarta.

To buy mine costs $300,000
I pay $1,000 a month to rent it.

Put your 300k in the bank. The interest pays my rent. I still have change. And $300k

Buy the apartment and then what? How to sell it? To who? For what price? How long it take?
No thanks. Better to keep cash in the bank and get something produces income plus I always have somewhere to sleep in Bali if I needed to move there

 

[jstar]

Investing in freehold landed property in strategic locations is very profitable, especially when you own insider knowledge or have influence to the development of forthcoming infrastructure developments like roads and amenities.

Yep, and then you thought there would be a second airport in Bali and bought land there. Or you thought PIK2 would never be successful and let it slip. And will Tabanan be the next hot spot after Canggu? Who knows.

This country is not like HK or Singapore where the next extension and future stations of the MTR/MRT are a given for succes.

Even the presidential elections have an impact; Prabowo might grudgingly agree with a new capital but even he (with Jokowi’s son as VP) makes it very clear Jakarta will remain the economic center of the country.

My F-I-L invests in everything btw. They laugh about the income of kos, apartments, etc and get even more from gas stations.

 

[snpark]

Instead you have PIK etc etc it seems like when you go over the "bridge" to golf course island its still another hour of driving
That place is huuuugggee
Its like a Dubai Palm island meets Vegas strip - all neon lights and busy busy, wide clean smooth roads, cantonese signs everywhere, clubs, bars, restaurants

 

[jstar]

You can even walk it from let’s call it PIK 1 for lack of a better word. But now it is PIK 2 that gets attention. Officially not even JKT. Of course all Chinese. And they’re stingy (I can say that with my wife’s permission).

Very slow all those developments btw. Look at the Amsterdam houses and walking bridges; take forever.

 

[Samoerai]

You can even walk it from let’s call it PIK 1 for lack of a better word. But now it is PIK 2 that gets attention. Officially not even JKT. Of course all Chinese. And they’re stingy (I can say that with my wife’s permission).

Very slow all those developments btw. Look at the Amsterdam houses and walking bridges; take forever.

That whole area (PIK 1,2,3 ...) is not where I would want to live, ever.
Plus ... the planes flying over constantly: landing and taking off.

 

[Balifrog]

Kos is easy to build. 2 stories. 20 rooms. No need even to furnish. We did concrete shelves and a glass shower and enclosed toilet.
Big communal kitchen Pool.
Land is 40 year lease

Smallest room is 10jt a month. The 50sqm "apartment" with private kitchen is 20jt a month!!

10 jt a month for a Kos ? In Bali ?

Where is that ?

And who pays 10 jt a month for a Kos when you can have much better for that price ? Again of course, depends on the area ?

 

[snpark]

10 jt a month for a Kos ? In Bali ?

Where is that ?

And who pays 10 jt a month for a Kos when you can have much better for that price ? Again of course, depends on the area ?

Canggu.
And yes. Bali is expensive these days.

The prices have trebled since covid and yes the standard room is now 10jt a month. We are fully booked. And waiting list

What "much better for that price" ? It's brand new well now 2 years old with a pool and views of rice daddy etc 5 mins from the beach.

Seems you don't believe me or think I'm lying.

You live in Bali right? Rents are sky high these days.

 

[snpark]

Trying to upload a screen shot from the IG page but it's too big

 

[snpark]

ROOM RATES

Studio Room

IDR 10.300.000 Mill/Month

Standard Room

IDR 11.300.000 Mill/Month

Deluxe Room

IDR 12.300.000 Mill/Month

Notes:

• This is a flat rates within this schedule: check in at 6th and check out at 4th in any month.

• Custom dates of rent to be discuss.

• Room availability will be updated by the 19th day of the month. Tenants should info end of the rent latest by the 18th. Late info cause no return security deposit.

• There is security deposit on top of room rent.

• Price is all include electricity, fast wifi, free laundry (up to 5kg/week), room cleaning, linen change and kitchen's free complimentary.

 

[snpark]

Canggu 1 December 4, 2023


STUDIO ROOM

Size 18sqm (1 unit)

• Smart Android TV 32 inch

• Medium Fridge

• Dining Set

• 3 Meter Wardrobe

• Stable Hot Shower

• Enjoyable and Cozy Sleep Experience

• Fiber Optic 150MBPS

• Working Table

• Free Laundry 5kg/week

• Room Cleaning 2x/week

• Access to Pool, Communal Area, Laundry & Ironing

Send message

LEARN MORE.

 

[Samoerai]

Rents are sky high these days.

Studio Room

IDR 10.300.000 Mill/Month

Biasanya, Indonesians rent kos-kosan, who work in hotels and restaurants. But their wages are around 5 juta - 15 juta.

Who are renting your rooms?
Must be tourists or WNA with kitas?

 

[Samoerai]

Rule of thumb; take the income of rental over 10 months, keep 2 months for repairs and costs.

So to achieve your $100K per annum, you would in fact need $120K. And 10% for rental income is quite high nowadays, if you have the cash and want to invest in RI a deposito might make more sense. Or 15 student studios in an apartment building (high building management costs!), or even a kost transformation. The problem is that many people mixup an investment with something they would like for themselves. A big mistake.

Check the thread 'Property Prices in Indonesia' and post from Jstar, above.