Yes, absolutely, you start with low rates to get some first bookings and gather your first reviews. However, you would offer at higher rates beyond the first 3-6 months in order to establish sustainable rates and get to the revenue you need. Accepting bookings at low rates in the far future is a bit unusual.
@@villanomics they just made a massive pricing mistake. happened to my friend forgot to change prices for new year. some people think being fully booked 3 months in advance is a good thing haha
Hello Mate Please help me understand. Why do we need to depreciate? So as time goes by, does the villa lose value instead of increasing? Can't it be sold in 5 years at the same price or more? Furthermore, won't your income (renting fee) increase every year as the purchase price increases? Thanks in advance!
Because you don't buy property free hold in Bali as a foreigner, you only lease it for x years, 25 years being the most common. You can extend up to 80 years in total (50 years for building), but you will have to pay the same money (+inflation & appreciation) for the extension.
@@trdi We can call it what we want, but we (foreigners) can't sell the lease? Let's say you rent out the villa at a 15% net ROI for 5 years, then you can sell the lease to someone else. Since prices are "supposed" to rise, the lease will be worth more. Of course this is negated by the fact that it is worth less due to a shorter rental period. Suppose the two cancel each other out, you made 15% a year, then sold it for the same price you bought it for. I would like to understand this more clearly. If prices rise at a higher rate than they are worth less because of the shorter rental period, you can make a profit on that too. In addition, if you can rent it out for more money year after year it further increases your profitability.
@@trdi You're confusing leasing with certified land titles such as Hak Guna Bangunan (the Right to Build) and Hak Pakai (the Right to Use) that have legally mandated maximum (but not minimum) durations for initial and extension/renewal periods and are registered with the National Land Office. A simple property 'leasehold' is not a recognised form of title in Indonesia (unlike in Common Law countries) and is just a private contract between the Indonesian owner (who retains legal ownership title at all times) and the foreigner (who must reside in Indonesia) that allows the foreigner to 'possess and use' the owner's property for a mutually agreed period of time. Leases are loosely governed by the Civil Code which does not mandate either a minimum or a maximum duration for a lease (I have seen one that was for 100 years) or even the terms and conditions of the lease agreement such as a right to extend etc. - it's all up to the parties involved to negotiate everything. None of the above options allow a foreigner to run a short term letting business however.
@@janoka910 Don't be taken in by these delusional and misleading RU-vid videos. There's no legal way for a foreigner to lease a villa then rent it out on the short-term market - all commercial transactions must be through a registered business and foreigners can't register a business - and leases (which come under the Civil Code and are not subject to mandated initial, extension or maximum terms) cannot be the subject of sale-and-purchase under Indonesian law - they can only be transferred with the owner's agreement. This guy has also made a serious miscalculation in his analysis by allowing the full 29 years of the lease to recover the capital employed when most houses in Bali, which has arguably one of the worst building standards in the world, will not be in lettable condition to Airbnb standards after just ten years as the effects of tropical heat, humidity, rain, ants, termites, vermin, earthquakes and foundation subsidence (most are built on land that was a rice field for a thousand years and use less than one metre of un-compacted soft coral stone for the foundation fill) cause leaking roofs, sagging ceilings, warped woodwork, jammed doors, cracked walls (soft bricks joined by mortar mixed with beach sand), peeling paint inside and out and leaking swimming pools no matter how good the maintenance along the way.
Hello, sorry if my question is out of place, right now I’m in Ubud and I’m trying to figure out how to move to buy a house. I am following your videos very carefully but I realized that I would need more specific support. Would you be available for a meeting to chat a little better?
Hi mate, I tried to answer you many times giving you my mail but it erase it. Probably I can’t write it in here. Is there a way to write you directly? Thanks
