Ubud, Bali, Property Investment: Five Great Reasons Why Ubud Real Estate Will Grow in Value

By Glen Allison Glen Allison
Level: Basic

I'm a vagabond visual artist and travel photographer/writer presently embarked on a nonstop, ten-year marathon odyssey around the globe to capture the world's most extraordinary ...

?Bali is one of the worlds' most sought after tourist destinations. Its unique ancient Hindu culture is rich with elaborate religious ceremonies and processions that occur almost daily.
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Five Great Reasons for Property Investment in Ubud:
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1. Ubud is the art and dance cultural center of Bali. Located in the center of the island-state, this small village is one of Bali's three primary tourist areas. Ubud thrives on a steady, dynamic level of tourism that stimulates a fast growing real estate business climate for both commercial and residential properties. Bali's stable provincial government is democratically elected and encourages an open and welcoming business climate since economic growth adds greater tax revenues that permit new and ongoing development projects. The government's ever increasing investment in infrastructure stimulates even more foreign investment and the implementation of new business standards and regulations underpin long-term economic success strategies that point to sustained growth in coming decades. Even during the recent global economic crisis, Indonesia maintained approximately a 6% growth rate. This burgeoning economic giant in the region was little influenced by the downtrend, primarily because the Indonesian financial system doesn't function as a credit-based economy. Most foreign investment in real estate is on a cash basis. Today property values maintain a steadily increasing growth curve and the investment value of property in Ubud continues to augment because of the town's popularity amongst tourists and locals alike.
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2. Ubud, a quaint little village of only 8000 people, is a magical place. In 2009 it was rated "Best City in Asia" by readers of the US-based luxury magazine Conde Nast Traveler. Ubud dethroned Bangkok as the best Asian city. Bangkok had held the top spot since the category debuted in 2004. Ubud also beat out several other key travel destinations--Hong Kong, Shanghai and even Tokyo--all major contenders for the prestigious award. Ubud's validation by Conde Nast Traveler as being "The Friendliest Town of All" is just one of many aspects that will most likely boost property and business values in the area for years to come. On a side note for connoisseurs, Cathay Pacific's Inflight Magazine, named the martinis at Naughty Nuri's restaurant in Ubud as being one of the top five best in all Asia.
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3. Adding to Ubud's media frenzy buzz, the town was prominently featured in the wildly popular, global best-selling book, "Eat, Pray, Love," which remained on the New York Times Best Seller List for a staggering 187 weeks. Oprah Winfrey devoted two full episodes of her show to discuss the book's success, which was soon followed by a Hollywood movie of the same name starring Julia Roberts, who won the 2001 Academy Award for Best Actress. Ubud's recent accolades have intensified global investment interest in the town, which continues to show strongly augmenting revenues in the tourism sector of its economy. Property values and land rental rates for restaurants, shops, residences and hotels continue to skyrocket, which has stimulated even more interest in private real estate investment.
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4. Notwithstanding the attraction of Bali's rich ceremonial culture and its lush tropical environment, one contributing factor to the island's dynamic rate of tourism growth is its low cost of travel expense when compared to high-key Western destinations in the States and in Europe or even in the nearby Southeast Asian cities of Singapore and Hong Kong. Indonesia's average per capita income is approximately US$2 per day across much of the country and per capita income for workers in Bali typically is less than five dollars per day. Such low cost greatly reduces construction expense for new projects and the cost for staff once the projects are completed. This factor becomes highly attractive for not only foreign commercial real estate ventures but for private property investment as well. Retirees seeking exotic locales for retirement often place high-value-for-money-spent as a primary investment concern.
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5. Living in Ubud has its rewards. Since the town is located in the center of the island at a higher elevation than the over-crowded beach areas further south, the temperature is several degrees cooler. And there's a bit more rain in Ubud, which generally is of short duration, that nurtures the nearby verdant rice terraces--some of the most dramatic on the island. Ubud's rich cultural heritage in art and dance has fostered a vibrant expat community of countless individuals involved in the creative arts, many as working professionals. The magic draw of Ubud has triggered the opening of numerous art galleries, fine dining establishments and five-star hotel accommodations. Many foreign investors seek property investment opportunities in Ubud to capitalize on Bali's lucrative tourist industry by tapping into the luxury holiday rental villa sector.
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Ubud's vibrant residential real estate market has spawned some of Bali's most innovative architectural designs, many that incorporate structures rising from infinity-edged reflecting pools. The concept blends unique contemporary design with the traditional Balinese "alang alang" thatched roof. The climate is temperate all year long so glass-enclosed, open-air rooms can invite nature inside in an often striking juxtaposition of elements.
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Today's Ubud seems to have captured the most exotic aspects of Bali's rich cultural heritage while it keeps abreast with the future. It surely has captivated the world's attention.
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Copyright ? Glen Allison ALL RIGHTS RESERVED

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Article Submitted On: February 13, 2011

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Checklist for Finding Great Real Estate Deals

Where others see a problem the best real estate investors create an opportunity. But, sometimes even experienced real estate investors can miss out on an opportunity if they don't look at it the right way.

I know, because I almost missed out on a deal that's made us $100,000 and counting!

I'm talking about a little house that looked more like a tool shed than a dwelling. Just a 600 square foot wood structure sitting on a concrete slab with no basement and no garage - it was darn near the last thing I wanted to own.

It looked like a nightmare to me. I had visions of constant repairs and never-ending tenant troubles. I really couldn't imagine anyone living there and figured it was a waste of time to even think about buying it.

But my husband told me to do a reality check - because there were a lot of reasons to like the deal:
That area, and specifically within a block of this property, was being totally redeveloped with mixed use properties.The lot was large even though the house is not.We could pick up the property for no money.And, it was one of the cheapest properties we'd seen listed in the City for years and years,The current rent would cover all carrying costs until we figured out what to do with it.

Five years later, that property - which essentially is a large chunk of land in an emerging area - has more than doubled in value and the rent has covered all the costs. My husband and his Dad have only spent one afternoon there fixing the porch but beyond that we've yet to have to put a single dime of ours into it.

It's just as easy to get excited by a property that isn't really a good opportunity as it is to miss out on the ones that are. So next time you are about to walk away from a deal or you think you've found a great one run through these four items in your mind before you make your final decision.

Will it rent easily?

I couldn't imagine myself living in that little shack but I was not the target market for that rental.

The same tenant has been there since the day we bought it. He loves the large yard. He doesn't mind the exterior appearance because he finds it cozy inside and the rent is cheap for the privacy and space he enjoys.

If there will be strong demand for the property as a rental, it doesn't matter whether or not you would live there. (Just make sure the target market you're after is one you're prepared to deal with because some tenants require more time and energy than others)

Are emotions driving your decision?

Emotions weren't involved in this particular purchase, but it's something to be aware of in every real estate deal. If, at any point in the negotiations, you feel emotionally that it's a deal you HAVE to have or a deal that you won't do because of some emotional reason (I'm afraid of losing money, I'm afraid of missing out) you need to take a step back, take a breath and review everything! When your emotions are involved, you can't make rational decisions.

What do the numbers say?

My Dad told me about a conversation he had with his accountant about one of his properties. He asked the accountant what the numbers said about the profitability of the building. The accountant said with a smile, "What do you want them to say?"

In other words - was this for a bank, a buyer or the tax man? The answer can be different depending on whom you want to appeal to because there are plenty of ways to make a property look like a good deal. It's up to you, as a buyer, to make sure the numbers really say what the seller says they say.

In this deal, the numbers sold me. The rent covered all the expenses and left a small cushion for surprises. And, the tenant we had in place was signed on for a year. We doubled checked all the utility bills and felt confident the numbers would be as we projected, but even if they were off a little bit we weren't investing any money into the deal to get into it, so we were able to set aside a little cushion of case just in case we needed it.

Before you purchase a rental property review each and every lease in place, and then double check the rent with the tenants, get copies of the bills direct from the vendors and check market rental rates for the area to make sure the current tenants aren't overpaying.

Are You Judging the Book by Its Cover?

Many opportunities are missed because a property makes a negative first impression. The best deals are often those that look rough but can be repaired and restored for little cost and effort. Granted, our little shack needs to be completely rebuilt to maximize its potential - but had my husband allowed me to judge it strictly on its looks, I would have missed a deal that has (so far) grown our net worth by $100,000.

Free tips and information on investing in Real Estate in Canada at http://www.revnyou.com/. Sign up for Dave and Julie's free monthly newsletter and get a free starter tips guide where you'll learn:

* Three easy ways to make money in real estate (so easy you'll be making money while you sleep!),
* How to buy properties in Canada with limited cash,
* Your property type
* The easiest way to get financing,
* How to select a location and begin the search for your next (or first) property purchase.

Article Source: http://EzineArticles.com/?expert=Julie_A_Broad

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