Sweet Surrender

I came to Bali looking for relaxation. It wasn’t cheap to travel here, so I wanted to get some spiritual return on my investment. I chose to stay at Kayumanis in Ubud on the recommendation of a friend and he got it so very, very right.

Kayumanis means cinnamon in Indonesian (literally sweet wood) and the use of this noble spice is a theme that runs right through the resort – from the petite cinnamon biscuits that are placed in your room to satisfy a naughty midnight snack, to the pen made of the bark of the tree to crushed leaves offered at the spa. I was here for the spa and this one is perhaps one of the most beautifully positioned in – dare I say it – the world! It lies in the jungle-clad Ayung River gorge near Bali’s spiritually-charged Ubud with the sounds of rushing water to provide background music for the soul.

After my mandatory one day of rigorous sightseeing I needed to start relaxing and the spa was beckoning fast. I was soon under the spell of some hot stones and the long, strong strokes of a masseuse who knew just how to take years of tension away from my aching shoulder muscles. I have been in some spas in my time but nothing had prepared me for the Sweet Serenade treatment here. It all started out as I was accustomed; the cold towel on arrival, the scent of essential oils, a welcome drink of spicy leaf juice and a soothing foot bath. But, somewhere between the body scrub and the warm body wrap something strange and miraculous happened. I started seeing things. My eyes were closed yet I saw deep crimson shapes moving around a purple background only to fade away to be replaced moments later by different crimson shape. I remembered reading about the absinthe-inspired dreams of Van Gogh and thought that the leaf juice may have been having some surprising side effects. The truth is that after spending thousands of dollars on meditation and never getting this relaxed I had finally discovered the secret to emptying my mind, this treatment! Luckily the mind emptying happened when there was still an hour of massage plus the facial to come, so I had time to really revel in the epiphany. I don’t think I have ever felt quite as chilled out as I did leaving the spa for the final time.

If you are looking for privacy with the perfect level of attentiveness then this is definitely the place to come – despite my regular outings to the spa I hardly saw any other guests but I was always warmly greeted by the staff many of whom remembered my name. They are drawn from the local area and have an openness and warmth that can’t be manufactured or taught, it’s simply a natural byproduct of living a good life in a beautiful place. Kayumanis Ubud is one of the few destinations in this world where you can spend just a few days and still find a level of relaxation that is so elusive in your everyday life. It is a place where everything has been well thought through, allowing you to enjoy whatever your day brings without a care in the world. Bali is wonderfully rich in culture, Ubud is magical but Kayumanis is spellbinding. However long you wish to stay – just stay longer.

What Does Your Real Estate Agent Need to Know?

Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation.

Agents working for buyers have three possible choices: they can represent the buyer exclusively, called single agency, or represent the seller exclusively, called sub-agency, or represent both the buyer and seller in a dual-agency situation. Some countries require agents to disclose all possible agency relationships before they enter into a residential real estate transaction. Here is a summary of the three common types.

In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table.

Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer’s offer. Therefore, some law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without express written permission.

A buyer also can hire his or her own agent who will represent the buyer’s interests exclusively. A buyer’s agent usually must be paid out of the buyer’s own pocket but the buyer can trust them with financial information, knowing it will not be transmitted to the other broker and ultimately to the seller.

What repairs should the seller make?
If you want to get top money for your property, you probably need to make all minor repairs and selected major repairs before going on the market. Nearly all purchase contracts include an inspection clause, a buyer contingency that allows a buyer to back out if numerous defects are found or negotiate their repair. The trick is not to overspend on pre-sale repairs, especially if there are few houses on the market but many buyers willing to buy at almost any price. On the other hand, making such repairs may be the only way to sell your house in a down market.

Should I include an inspection contingency in my offer?
An ‘inspection contingency’ protects you as a buyer in a purchase offer by allowing you to cancel closing on the deal if an inspector finds problems with the property. As soon as the seller accepts a written offer, the document becomes a legally binding contract. The purchase contract can be written to include a contingency for any repairs found to be needed or related items the seller must take care of before closing. If these are not dealt with, and you have such a clause in your contract, you can delay or possibly cancel the closing. If it’s not stated in the contract, you could face losing your deposit. There also may be costly legal implications stemming from backing out of a contract.

You usually will have the right to choose the inspector (and be responsible for paying for the inspections). In addition to an overall inspection for structural soundness, you can request a satisfactory pest control inspection report, roof inspection report or contingency for no potential environmental hazards such as asbestos.

Contingency clauses should satisfy the concerns of both the buyer and seller. Buyers also can protect themselves by inserting additional necessary contingencies. Indicate which items like curtains and appliances are to remain with the house. Then stipulate you have the right to personally inspect the home 24 hours before closing to make sure all is in order.

No Toxic Assets in Bali!

While the financial markets tumble and the world plunges into recession, buying property in Bali could prove to be the smartest investment you ever made. Here’s why.

Let the facts speak first:

A piece of 25 are of freehold land in Umalas (a village just 10 minutes from Seminyak) bought in 1997 for the equivalent of US$50,000 got sold in 2008 for US$380,000. That’s a capital gain of 22.5% per annum.

A leasehold villa in Seminyak bought in 2006 for US$425,000 sold in 2008 for the amount of US$560,000. Add the rental income from operating two years on the villa holiday market and we are looking at a total return on investment not short of 25% per annum.

A 30 are cliff front property on the Bukit was sold for IDR150 million per are back in 2005. In July this year, that plot sold for IDR405 million/ are making the vendor an annual return of 40% on his investment.

A one hectare beachfront property in Tabanan bought in 2005 for IDR23 million/ are just sold for IDR80 million/ are. That’s 50% capital gain per annum.

In January 2008, one hectare of hilltop land on the Bukit (Bali’s southern peninsula) was bought for IDR65 million/are. Only five months later, the same land was sold for IDR90 million/are. Now you do the maths!

Compare this with the performance of the Dow Jones Industrial Average. On 7 November 1997 the index stood at 7.581 and 11 years later at 8.943. That’s a whopping 1.67% increase per annum! Yes, the index was at 14.164 on 9 October 2007 and if you would have sold on that day you would have made just about 7.2% per annum over 10 years. If … but you didn’t because your banker keeps telling you to take a long-term view on stocks. Complete rubbish. We don’t need Keynes to remind us what happens in the long-run, do we?

If you haven’t bought property in Bali yet, you are probably feeling sorry now for having missed out. Don’t. Now is the time to get into the market again.

The Rupiah has just lost 30% of its value in the last three months and property prices haven’t adjusted yet. They are going to remain flat for the next few months. Building costs are also set to remain flat or even decrease slightly due to falling prices on international commodity markets. We are also seeing that some developers are increasing discounts and adding incentives to attract investors.

That’s why you need to get in now.

Did you just say, “it’s too risky to buy now”? Think a moment and look back to what happened in Indonesia in the last decade: Asian financial crisis, banks collapsing, political turmoil, democratic elections, war in East Timor, bombs in Bali, SARS, Tsunami, Avian Flu.

And what did this all do to property investments in Bali?

Not much. Look at the facts above. Property prices did not plunge, they kept appreciating in US Dollar terms. They may have remained stable for a while, but not for long. Overall, property prices in Bali increased for at least 20% per annum over the last decade.

Enough! Call us now to get the best deals or face regret next year for not acting.

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Bali Real Estate Resilience

A place for reflection

Bali is experiencing a spectacular recovery to its property sector with foreign investors pouring back to the island to take advantage of a lull in the market. Exotiq Real Estate is by far Bali and Lombok’s largest brokerage with offices in Lovina, Jimbaran, Sanur and Seminyak in Bali and Kuta and Sengiggi in Lombok. The choice provided by Exotiq Real Estate is unrivalled, with over 1,000 properties listed – and the list is growing. While we represent all of the best developers on the Island our philosophy is to stay clear of any direct, non-marketing, involvement in these developments, which leaves us unfettered when it comes to giving you independent and unbiased advice.