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Rory and Casey Jones built a villa in Bali for 2.287 billion Indonesian rupiah, or about $143,000.
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They wanted to invest in a tangible asset that would generate income and function as a nursing home.
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Before this, they had never traveled to Indonesia.
To Rory Jones and his wife Casey, building a house in Bali it seemed like a good idea – even though they had never been to Indonesia.
The couple, from Tasmania, Australia, dreamed of retiring earlyso they spent a lot of time investing in the stock market.
“I think we were a little discouraged by the fact that we were saving this money, but we had nothing to show for it other than numbers on a piece of paper,” Jones, 37, told Business Insider.
They wanted a tangible asset and, after some research, decided to build investment properties abroad.
“We decided this would give us the ability to earn a good income, but also a place we could potentially retire to, in a country that was cheaper than Australia,” said Jones, a photographer and videographer.
The couple had considered Thailand, the Philippines, and even Portugal, but they ended up choosing Bali because their research showed it had the highest return on investment. Furthermore, it was also relatively easy for foreigners to build a house there.
According to ILA Global ConsultingIt is possible for short-term rentals in Bali to generate an annual return on investment of 15%, while other markets offer 5% to 10%.
Although the couple had never been to the island before, they spent a lot of time in Southeast Asia.
“So we knew we liked the weather. We knew we would probably like the culture and food too,” Jones said.
First time in Bali
In 2022, the couple boarded a plane to Bali for the first time.
They were there for about three weeks, exploring the island and talking to different legal professionals and builders to get more information about how they could start their project.
“We spent a lot of time in different areas to make sure we liked the area and had a good understanding of what the area provided for tourists,” Jones said.
As traffic in Bali can be difficult to navigate, it was important that the chosen area had good infrastructure and was easily accessible, he said.
“Other than that, we were looking for a place we could retire to as well,” Jones said.
While looking for a peaceful but up-and-coming neighborhood that would attract travelers, they ended up finding land in the Bingin area, near Uluwatu, a region in the far southwest of Bali.
“The best success we’ve had is just posting in local Facebook groups to say we were looking for land, and then people would contact us and let us know what they had available,” Jones said. “With the land we ended up getting, it was a local guy who showed us the land. He didn’t own the land, but he knew the owners.”
Since foreigners are not allowed to own land in Bali, the land they own is leased for 30 years, with the option to renew for another 30 years. They paid 720 million Indonesian rupiah, or about $44,700, for it.
A modern tropical villa
The two-story villa, set on a 3,300-square-foot plot, has two bedrooms and two bathrooms. The entire construction, including furniture and permits, cost 2.287 billion Indonesian rupiah, or about US$143,000.
Jones says he chose to build a house from scratch because it was cheaper than buying one.
According to the property’s website Bali PropertyA new two-bedroom villa near Bingin could cost between 3.525 and 5.575 billion Indonesian rupiah, depending on the size, complexity of construction and remaining land lease.
“If there was something wrong with the building that already existed, we wouldn’t be able to tell,” he added. “But by building it ourselves, we could dictate the standards that would be applied to that building.”
Safety standards aside, it also meant they could design the building however they wanted. Jones describes it as a mix between modern industrial and boho, with a touch of Balinese influence.
The building looks modern from the outside, thanks to the black steel frames, mezzanine-style design, and vaulted ceilings. In contrast, the interiors are welcoming, with lots of wooden details and furniture.
“We knew the building itself was quite modern, so we wanted to bring a lot of the tropics and Bali into it with the interior design,” Jones said.
Everything in the village was made locally, he added.
The only major problem the couple encountered during construction was a particularly heavy rainy season that delayed the project by a few weeks.
“At the end of construction, they were late with everything, and it’s okay that they were late, but they didn’t tell us they were late,” Jones said. “There were some communication issues rather than construction issues, which caused a bit of friction in the end.”
Retire in Bali
The house can be rented in Airbnb for a minimum of two nights. As of press time, it has a 4.58-star rating based on 26 reviews.
“We originally planned to spend a few months a year in Bali, but the way things have been going, with how popular it is, I think it would make more financial sense to leave it rented on Airbnb all the time,” Jones said.
That said, Jones hopes to be able to retire to that villa in Bali in the next five to six years.
“We are working hard to save and invest as much money as possible to hopefully get to a point where we can retire in our early forties,” he said. “But plans can also change, so it would be great to retreat to Bali, but I mean, maybe we’ll stay in Australia. Who knows? It’s still a long way off.”
That said, the couple has plans to build more investment properties in Bali in the future.
Jones has advice for anyone thinking about building a home in Bali: manage expectations.
“Start knowing that the standards you expect in your home country may not be the same in Bali. Expect things to slow down and be done in a different way than you are used to,” he said. .
That way, things will be less stressful, he added.
Have you recently built or renovated your dream home in Asia? If you have a story to share, please contact me at agoh@businessinsider.com.
Read the original article at Business Insider
