Land Banking In Bali

What is Land Banking in Bali?

It is said that the only things worth buying are the ones that you’d be happy to hold 10 years after the stock market shuts down. Just think about this: if you were to buy an empty piece of land today, forget about it for 10 years and let the world change. In 10 years, the demand for land will be much higher as the population increases. There will be more demand than supply. That means that the piece of land you bought becomes much more valuable. Basic logics.

But our suggested strategy is a little faster one. If you are not willing to wait decades for the land to increase in value there are an alternative. It is called forced appreciation strategy. What you need is to buy a well-positioned land and add some value to it by installing a road access, electricity, water also buy preparing document for development of the land. Buy doing all of these you can expect to increase the price for the land up to 30% instantly. This strategy is nothing new, big developers have been doing this forever but this also works in Bali.

 

 

This strategy has been used and is currently being used today by many eager and successful people. Just imagine how much money you could have made if you would have bought land in the very same city you grew up in and sold today. Every city expands, the demand for residential, industrial, public properties gets bigger and bigger.

Businesses constantly try to rent out plots, whether for a month or a year. In order to build their physical businesses in a necessary way, these operations also require undeveloped land. A ground lease also referred to as a land lease lets a second party to rent the land out instead of acquiring it. There are countless uses for the land: land can be leased for cell phone towers, billboards or even chicken farms.

A great strategy to increase your profits when owning a piece of land is to subdivide the property (the land) itself in to many smaller plots and them reselling them separately at a higher price. For this reason there are so many small-to-midrange investors across the globe. The process of subdivision is divided in two: legal documentation and mapping. Legal documentation is basically the submission of the desired subdivision by contacting local authorities and paying a fee.

Then the trick is to simply choose a cheap enough property that is in a potentially soon to be developing and growing part of a metropolitan area anywhere in the world. Finding a place for potential future value can be difficult and easy taking into account the number of cities in the world. A great area for such investments is Asia, Vietnam, Indonesia or Cambodia.

Balivestor offers lands for land banking in Bali. The latter in particular is most attractive to tourists because of the year-round wonderful climate, beautiful marine life, a brand new international airport providing travel convenience and the general ever growing Indonesian life theme. It is estimated that in the upcoming years Bali is going to be one of the top most popular places in Indonesia and land banking in Bali can become really popular.

Just to clarify the situation in Indonesia: if you were to travel only 150km to the west of Bali and check how much the lands these cost in 2015 and now you would definitely be smiling. In 2015 a square meter in a plot of land cost US$80 and now 5 years later it costs more than US$400. Bali is also showing great numbers: in 2017 – US$20, now – US$75. And these number are only steadily growing.

It is little wonder that Bali is becoming increasingly popular with first time investors with such a land-to-dollar ration. Australians, Europeans and people looking for retirement options make up 60% of all Balivestor clients.

Best Southeast Asian destinations for Land-Banking

Another wildly fast growing city is Phuket. Cafes, bars, clubs, luxurious shopping stores, gyms make up the modern yet tropical theme of the city. This Thai Metropolis just like Lombok is an island so the land is limited. Statistics show that steadily increasing tourism will boost real estate prices making land-banking opportunities something to keep in mind. Note that currently properties along the coastline in Phuket are already reaching US$1000-$1500 per square meter. This number is expected to only grow.

Do not feel demotivated as there are many more places to invest such as a Vietnamese city of Phu Quoc situated in the southern part of Vietnam. The city is already showing a great increase in tourism within the past 3 years, one year surpassing another by more than 60% each year. Backpackers are a common in this area but the ever-growing number of luxurious hotels suggest that this place is going to shine. Currently there are plans in place to change the island’s infrastructure and create high-end leisure facilities. All this because of the growing number of excited travelers. Right now, a plot in this area along the beach costs about US$200-$300 per square meter.

Only 50km northwest of Phu Quoc is Shanoukville. A modest once thought to be a tourist hotspot courtesy of its beautiful coastline, warm cultural background and an ever-increasing number of travelers.

This place had a lot of changes. Tourism skyrocketed more than 700% in a few years, countless casinos were built, road signs popped up, crime increased, along with overpopulation, loss of peace and the worst – pollution. All this happened because of the Chinese Belt and Road Initiative. The future of this place is unclear.

Balivestor takes moral and business development components seriously. To avoid situations like the one in Phu Quoc Balivestor maintains strong ethical decision-making. Protecting nature by using locally sourced materials for construction and at the same time providing great business opportunities to ethical, understanding customers. Saving beautiful nature and not overpopulating tropical regions at the expense of greed is a standard.

Before signing something, you should carry out serious extensive studies. Land banking in Bali is not for all therefore preparation, patience and a well-thought-out strategy will bring you all the success you desire. With an annual growth rate of 15-20% Bali could be your greatest move in the world of investing.