- Rory and Casey Jones built a vacation home in Bali for 2.287 billion Indonesian rupiah, or about $143,000.
- They wanted to invest in a tangible asset that would provide income and double as a retirement home.
- They had never traveled to Indonesia before.
For Rory Jones and his wife Casey, building a home in Bali seemed like a good idea, even though they had never been to Indonesia.
The couple from Tasmania, Australia, dreamed of retiring early, so they spent a lot of time investing in the stock market.
“I think we were a little depressed about the fact that we were keeping this money, but we didn’t have anything to prove it other than a number on a piece of paper,” Jones, 37, told Business Insider. .
They wanted tangible assets, so after some research they settled on the idea of building an investment property overseas.
“I decided I could earn a good income and potentially have a place to retire in a country that is cheaper than Australia,” said Mr Jones, a photographer and videographer.
The couple considered Thailand, the Philippines and even Portugal, but ultimately chose Bali because research showed it had the highest return on investment. It was also relatively easy for foreigners to build houses.
According to ILA Global Consulting, short-term rentals in Bali can yield an annual return on investment of 15%, compared to 5% to 10% in other markets.
The couple had never visited the island before, but had spent a lot of time in Southeast Asia.
“So we knew we liked the climate, and we knew we would probably like the culture and the food,” Jones said.
First time in Bali
In 2022, the couple hopped on a plane to Bali for the first time.
They stayed there for about three weeks, exploring the island and speaking with various legal experts and builders for further insight on how to begin the project.
“We spent a significant amount of time in different areas to get a good sense of whether we liked the area and what it offered to tourists,” Jones said.
He said it was important that the area they chose had good infrastructure and easy access, as transportation in Bali can be difficult.
“Aside from that, we were looking for a place where we could retire,” Jones said.
Searching for a quiet but up-and-coming area that would attract tourists, they finally found land in the Bingin area near Uluwatu, Bali’s southwestern tip.
“The biggest success we’ve had is actually posting on local Facebook groups that we’re looking for land, so people can contact us and let us know what’s available. “We’re now able to help people,” Jones said. “The land we ended up getting was a local guy who showed us around the land. He wasn’t the owner of the land, but he knew the owner. Ta.”
Foreigners are not allowed to own land in Bali, so land owned by foreigners is leased for 30 years, with an option to renew for another 30 years. They paid 720 million Indonesian rupiah for it, or about $44,700.
modern tropical villa
Set on 3,300 square feet, the two-story villa has two bedrooms and two bathrooms. The total cost of construction, including furniture and permits, was 2.287 billion Indonesian rupiah, or about $143,000.
Jones says they chose to build their home from scratch because it was cheaper than buying a home.
According to real estate website Propertia Bali, a new two-bedroom villa near Bingin costs between INR 3.525 billion and IDR 5.575 billion, depending on the size, complexity of construction and the lease left on the land. It is said that there is a possibility that it will become Rupiah.
“If there was something wrong with the existing building, we wouldn’t know about it,” he added. “But by building the building ourselves, we can determine the standards that will be put in place in that building.”
Safety standards aside, it also meant they could design the building the way they wanted. Jones describes it as a mix of modern industrial and bohemian with a touch of Balinese influence.
The building’s exterior looks modern thanks to black steel window frames, mezzanine-style design, and vaulted ceilings. In contrast, the interior is cozy, with lots of wood accents and furniture.
“We knew the building itself was going to be very modern, so we wanted to incorporate a lot of the tropics and Bali in the interior design,” Jones said.
Everything in the villa is locally made, he added.
The only major problem the couple encountered during construction was a particularly bad rainy season that delayed the project by several weeks.
“Towards the end of construction, they were quite behind on all the work. It’s fine that they’re late, but they didn’t tell us they were late,” Jones said. Told. “There were some communication issues, not construction issues, and that caused a little bit of friction towards the end.”
Retire in Bali
Villas can be rented on Airbnb for a minimum of 2 nights. At the time of writing, he has a 4.58 star rating based on 26 reviews.
“We originally planned to spend a few months a year in Bali, but given what has happened so far and how popular Bali is, I think it makes more financial sense to rent it out on Airbnb all the time. ” Jones said.
That said, Jones hopes to be able to retire to a villa in Bali within the next five or six years.
“We’re working hard to save and invest as much money as we can and hope to get to the point where we can retire in our early 40s,” he said. “But sometimes plans change, so it would be great to retire in Bali, but maybe I’ll stay in Australia. Who knows? That’s still a long way off.”
That being said, the couple has plans to build more investment properties in Bali in the future.
Jones has one piece of advice for those looking to build a home in Bali: “Manage your expectations.”
“Be aware that the standards you expect in your home country may not be the same in Bali. Be prepared for things to be delayed and for things to be done differently than you are used to.” “Expect to be exposed,” he said. .
That would make things less stressful, he added.
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