Everyone knows that real estate has long been the playground for the rich and well connected, and that according to recently published data it’s also been the best performing investment in modern history.

So far, - yes, absolutely a true statement.  
However, is the ’new normal’ era, caused by the nasty Covid-virus maybe a game changer?

The answer to this: NO, good property purchase will always be top-performing.
Just that for several more month, it depends on from which position we look at the developments, which determines a temporary split in fortune making.

For a property owner, holding a Balinese property for ongoing income earning by renting it out, these months are looking grim. The only bright outlook is, that after ’normal, comes back, prices will be on the rise again and the capital gain will offset/ overtake the present lack of rental income.
The problem is, that there are no short-term renting tourists around. You see just a few foreigners who got caught on Bali with no permission to go back home overseas. They are now seeking monthly rental villas "at a Covid-price please".

Under normal circumstances owning and renting out a villa here, is providing a nice passive income and pleasant property value appreciation. This time will come back.
Just when precisely, is open.
In talks among us local real estate guys, we assume that after opening the Bali airport on September 11, there may be a second wave of virus infections over the month October and November. Although this will be likely another setback with business closures and restrictions, it is also fair to think, that worldwide and in Bali too, the people become sick and tired of keeping the virus threat foremost in their mind.  Eventually the need to return to normality in everything they do, will influence what happens as this unprecedented year ends.

In consequence for the astute property buyer, the time now is not a nasty challenge, but a great opportunity for buying smart, with a limited window in time which is likely to close in the first half of 2021.

You remember that prices over the last five years have been increasing from year to year.  Then, in March this year, the tiny virus has successfully put a stop to this trend.

If you ever thought of buying in Ubud, now is the time to do so.  What may not have looked to be affordable any more, may now come within your budget. Who would have thought that we move that fast into a buyer’s market again?

The Covid-19 drama definitely bites into the holiday villa market. We have been instructed to sell some villas and there will be several good, but probably not exactly golden opportunities to purchase at reduced prices.  The vendors who consider to sell, also expect that the market will get back to its former level and may not offer huge reductions, when not really in dire need.  However, you never find out, if you don’t try.  Tell us about your offer on any given property which is listed for sale with us and we sure will knock at the vendor’s door for you.

Should you step now into the ring, and buy at a discounted price of maybe minus 15 to 20%,  with the intent of next year selling again (also called flipping), and later repeat this circle until the tax department feels obliged to send flowers to your birthday?
For sheer monetary gain, as we agreed before, this certainly is the time to do so.

Or wait a moment, - being interested in Ubud, you may possibly prefer to focus on the good life here in Bali, rather than continue hunting for more money like it is the obsession for many where you come from. Are you belonging to this group?

Luckily there is a third option:  Combine both. Live the Good Life
a n d   entering the millionaire factory.

To do so we want to look at the basics of ’flipping’ property, the buying of land or villa to sell short term again, versus – buying for renting out the place to create a steady income.  Maybe also allowing for some time for your own holidays on your Bali property, which may be a wise move to prepare for, still in this year. On this more next month…

You would find 1001 websites about real estate business and transactions. You sure do not need to hear right now from me even only part of the complex bamboozle again.
However, buying in Indonesia / Bali is different in several ways from purchasing property in other Countries, therefore you need to understand some finer points.

UbudProperty has on this website  UBUDPROPERTY.com a section ’Buying in Ubud’ – Legalities Buying / Lease.

You may forgive me that I won’t be silly and repeat all here again, when it takes you just a click to go there yourself.
If you are serious, it is essential reading though.

However, in the legal part you’ll find no mention, that a foreigner cannot get a loan for a property purchase from an Indonesian Bank, because this is not a legal issue, but Government policy.
Therefore, and foremost of all, you have to come with a wad of money to enter into the property business here.
No problem?  OK then, let’s get on with it.
The choices are many:  Buy freehold in several different ways; or lease long-term, even for flipping. (Just that you cannot wait until near the end of the lease term to sell the contract with profit again).

Look at the land and villas you’d like to buy or lease within your means and don’t be shy to ask us any related question to better understand your options.  
Then you are well informed and prepared until it is possible again, to meet and eyeball the object of your desire in person.

Sounds like a plan?

Stay fit and healthy, will you please?   
Cheers – Ray,
for the team of UbudProperty