HI forum members, I am new to this and have a couple of questions for the experts.
My husband and I are thinking of leasing an apartment in Bali. The lease has only 17 years left to run and the property is 12 years old and in a very central location. The advice received from the management company is they are unsure if the owner will re-new if so, at what cost.
I have a morbid fear of the "big developer" coming and knocking this 2 strorey perfectly position block, down in 2032. I know I am basically asking how long is a piece of string?. If the lease was renewed, what are the costs usually associated with this. I was under the impression, and could still be correct, that we would have to purchase the lease again (for the same amount, or maybe more).
As we are frequent visitors to Bali, we are trying to minimise accommodation costs, and of course, have fallen in love with this property!
Any advice would be much appreciated. As an aside I have already been in touch with Vidhi Law Office to seek their advice also.
Thanks in advance.
Leasing Property in Bali
17 years from now will be just about exactly how long as I've already lived here on Bali. If land values 17 years from now are anywhere near as high as land values today versus 17 years ago, your lease will probably be offered to you for renewal then at 25X what you are going to pay now.
Yes, land today on Bali (the best parts anyway) are around 25X what they were when I first moved here.
Be happy you can lease this place for 17 years, as many Balinese are wising up and limiting leases to 10 year maximums for the simple reason that projecting future land prices here is near impossible. In fact, more and more I see one to five year leases, and from the Balinese perspective, that makes a whole lot of good sense. In all seriousness, if your Balinese owner is willing now to commit to renewal which comes into effect 17 years from now...then he needs his head examined...orang bodoh asli.
Good luck with your new place!
Terimah Kasih Banyak Ubudian,
I was hoping you would reply kamu banyak pintar. Aku masih belajar, selalu!!
Yes, when you put it so succinctly, it makes perfect sense!! The only leases beyond 17 years are 99 offered by the massive developments, that cost quite a bit more than what we are willing to pay. For us it is not about rental returns, although this property does have a good occupancy rate, and fantastic location, it is more about us having a regular residence to return to.
Plus, I need a place to practice my Bahasa Indonesia, besides my Guru!!
Many thanks for your help!
Sampai Bicara Nanti 
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