BALI LUXURY VILLAS TERMS & CONDITIONS
Terms of Lease:
Only Indonesian citizens can own real Indonesian Land. There is no way around this.
The owner of the land is an Indonesian Notaris which is a very prestigious position in Indonesia. According to Wikipedia “An Indonesian Notary is a profession designation for someone who has received legal education licensed by the government to do legal matters, especially as a witness to the signing of the document.”
A lease signed by a notary is one of the strongest documents a person can present to the courts as proof of a lease.
Each foreign purchaser will be provided lease documents that total 80 years prepaid.
Therefore, the foreigner has a right to use the villa and the land for the next 80 years. Why this is important is because of the appreciation of a Bali Villa is a bell curve as far as appreciation?
For approximately half of their life, they appreciate and then they start to depreciate to the value of what they can be rented for over the balance of lease.
PT. Bali Affordable Lifestyles International who manages Hall of Fame Award winning PT. Bali Luxury Villas has over 15 years of experience in buying and selling villa leases.
They believe that these villas can easily rent out for long term retiree for around $2.000 per month. Therefore, the gross income per year could be around $20-$24,000. Take that times 80 years and that is $1,600.000 to almost $2,000.000 return on a Villa that you can purchase for around $200,000.
The reason PT B.A.L.I. recommends an 80-year lease is this allows a baby boomer in his 50s and 60s to live in the Villa for 10 to 20 years and then sell it or pass it on to their Heirs.
Therefore, a Bali Luxury Retirement Villa Owner enjoys almost the same benefits of ownership as an Indonesian.
There is one major benefit of leasehold. If you were able to hold freehold, you would have very few people you could sell it to because it would only be Indonesians that could qualify to buy it. Having it already as a leasehold property makes it easy for you to transfer your lease to other foreigners in the future.
PAYMENT TERMS & CONDITIONS:
Full payment shall be paid by the LESSEE to the LESSOR to purchase a Bali Luxury Retirement Villa with prepaid leases totaling 80 years as follows.
The villas will not be completed until 2020, therefore, the following is a schedule of payments to be made up to an after completion of each villa.
Payment terms: All prices are in U.S. dollars
A good-faith deposit of US $2,000 shall be paid upon approval of an initial agreement to purchase the villa and the land under leases for up to 80 years. If a signed agreement to continue the purchase is not approved by the Leasee within 30 days of receipt of the $2,000 deposit this agreement becomes null and void and the $2,000 will be fully refunded within 10 days thereafter to the Leasee.
A non-refundable down payment of 40% of the total purchase price less the $2,000 good faith deposit shall be paid at the time of signing an official lease for 80 years along with the approval of the Villa design, building materials specifications, owners’ agreement, and common area maintenance agreement.
A construction progress payment of 20% shall be paid when the foundations and the walls are complete.
A construction progress payment of 15% shall be paid when the roof, doors, and windows are installed.
A construction completion payment of 15% shall be paid when the villa is completed and ready for handover.
A holdback of 10% shall be held back for 90 days after handover when all minor problems are completed by the contractor.
The Lessor will strive to have the villa completed and ready for handover approximately 12 months after the 40% payment in Payment terms 2 above is received.
The first party guarantees that the villa will be completed within 15 months otherwise they must pay a penalty of 1% of the total purcahse price per month until it’s completed.
The First Party guarantees that the buildings and all appliances supplied by us are guaranteed against all defects for 365 days from handover and will pay for all parts and labour to repair any manufactures defects.