have you ever thought about building your own Villa and Bali or investing into a villa and Bali if you haven't you might want to think about it because in my opinion investing into a bali Villa even if it's for your own personal home is one of the best investments that you can make in 2023 or 2024 but there's one big problem and that is that as a foreigner you technically can't own land in Indonesia and with our project we are already $100,000 over budget we're 6 months delayed on the project and on top of this I've talked to dozens of other people who are building Villas in Bali and this is a widespread problem that is common amongst almost every single person that I've met that has built a villa and Bali so in this video I'm going to break down exactly why we still decided to move forward with this project even knowing all of those risks and then I'm going to share the complete plan and breakdown of why we decided to make this investment the insane Roi that we're planning to see from this build and all of the fundamental steps that you need to understand if you are thinking about starting a villa build in Bali and this is going to be the first of many videos in this series where I'm going to be documenting the entire journey of our build all of the steps that we have to go through from finding a contractor purchasing the land finding a notary to help you notarize so you can own the land and build on it to actually working with the Architects to build the property and then execute the project so stay tuned for the rest of this video if you want to learn more about that and make sure you subscribe to the channel if you want to get all of the coming updates on how the project is going and how you can actually execute something similar for yourself and now I'm just going to jump straight into these four steps here number one why are we investing into the villa and Bali the exact Roi that we're planning to see number two how do you actually go about purchasing land what type of lawyers do you need how do you find Architects and how do you find contractors to help you build your dream Villa and Bali number three what problems have we faced and how can you avoid those problems for for example being 6 months overdue on a project dealing with bad contractors and ending up with a project that's already 100 150k maybe even 200k over budget now at this point and number four what's next what are the next upcoming stages and what can you plan to see next in the upcoming videos well besides the obvious reasons that Bali is an absolute Paradise it's got amazing beaches amazing food amazing people amazing gyms and also an insane community and network besides all of those reasons it is also a great investment opportunity so let's jump into the investment and to give you a quick example of this what I'm first going to do is I'm going to show you our current build project I'm going to show you the renders I'm going to show you the exact breakdown of the entire build and then I'm going to show you some comparables on Airbnb so that you can start to understand the numbers that people are seeing with Bali rentals so with that being said this is the final very very close to final draft of our build that we have been working with the Architects for the past 5 months to completely build out and uh yeah we have put a lot of work into this with the Architects to get it exactly the way that we wanted it so to give you a quick run through of the build here we have the front side of the house you can see we've got a nice big yard this is very rare and Bali a lot of times people are trying to maximize space and we're trying to have a little bit of outdoor space and in the back of the house we're going to have a gym and a cool little Lounge area all of the bedrooms are going to be super modern and Polished with working desks and offices in every single bedroom and then on the second floor before we enter into the bedrooms we have this beautiful mesan area where we have this halfway point in between the downstairs and the bedrooms with tons of storage we have washer and dryer this is also very rare to find in Bali typically people go out and get their clothes washed at a lroom mat but we're going to have everything inside of the villa and and then we have stairs that go up to the rooftop as well so on the rooftop we have amazing views that go all the way down to the ocean and at the downstairs poolhouse area we've also added a spa so as you can see down here we have an ice bath a jacuzzi and a sauna all inside of our Villa so this Villa is basically built as a personal house for myself it's my dream house it's got an ice bath a Jacuzzi a sauna and a gym allinone which is everything that I use on daily basis and then the pool house will basically be converted into a office space where I'll be able to record more cool videos like this so as you can see this is a quick taste of the Villa that we're building now if you're curious about how much this build is costing us let me break this down for you right here so so far the cost for us has been first land and the cost for 500 square m of land was $110,000 all right now on top of this we have the cost to build the Villa The Villa right now is being quoted to be about $250,000 for what I just showed you there so all in all we're in about let's say 350 to $400,000 now let's take that $350 to $400,000 number and see what kind of return that gets when we look on Airbnb so right now I'm going to go to the area that we're building in we're building in bingan ulatu it is one of the hottest and most popping areas in Bali uh in my opinion at this point right now and if we look for Villas right now that have three bedrooms which is what we're building we can see at the low end they start at about $200 $300 a night now if we look at some of these $250 per night Villas we can see it's got a very very very basic living room it has no grass and no yard and it also doesn't have an ice bath a Jacuzzi a sauna and a gym so now let's go back and see what we start to get at a $700 per night price point so now if we look at Villas that are over $700 per night in bingan ulatu we can see now we finally have a villa with some open living space and a nice garden and some space to move around in but it's quite old school so I would say our Villa is definitely still going to be nicer than this and this is running for 800 a night all right the reason why people are paying this much for this Villa though is because it's got a very open floor plan it has an amazing yard and again this is very rare to come by because land is getting more and more expensive uh as the years go on in Bali and people are trying to maximize every single square meter of that Land by building on every single square inch of it which usually leaves no room for a garden and now let's look at this Villa here this is 1,800 per night it's got a similar style modern style it is open living so it doesn't have AC which is tough in B you definitely want to have an AC in your living room but it's big and it's modern and it's nice but they don't have an ice bath and they don't have a jacuzzi and it still looks like they don't even have much of a yard either they've used the entire yard for the pool which I don't understand why people do that and the crazy is is that the people that are coming to Bali more often than not have a lot of money to spend there's a lot of very wealthy people coming to Bali and they're spending a ton of money on having Villas and renting Villas like this that are ready to move into and that is where you and I can make a profit my friend so for example if we look at this $1800 per night Villa if we look right now is November 204th or today's the 25th it is already booked out for the rest of the week next month it is already booked about 50% occupancy and I can confirm that with every other Airbnb rental owner that I know in Bali they typically see 90% rental rates on a monthly basis once it drops down to 70 or 80% rental they consider that a bad month so let's take some of these numbers let's take some of these hypotheses that we've now seen and the prices that people are charging for these Villas and Bali and let's go back to our calculator so we're spending 300 to 400k to build this Villa well what is a math pan out to well let's say I think we could probably charge 1,000 a night but let's say we do $800 per night for our Villa I think we'll be able to do that with the ice bath the sauna the gym the three floors the rooftop with the view and everything else that we're adding on to it but let's be nice and let's charge 800 now let's take 800 times 365 days I'll whip out my handy dandy calculator and and see what that comes out to $292,000 but remember we're not going to get 100% occupancy so considering that most of the people have spoken to have 80 to 90% occupancy rates let's go on the low end and let's assume that we have an 80% occupancy rate for the entire year so I'm going to take 292,000 multiply that by 80% and that equals $233,600 so as you can see after 2 years we will have already made $467,000 at this price point and after that our entire Villa is paid off all of our land is paid off and that means that if we take $233,000 and we divide that by 12 we'll be making $199,000 roughly per month in income if we rent this Villa out and continue to rent it out so this is exactly why we are investing into a villa in Bali the returns that you can see in Bali on Villas like this are absurd right now because the cost to build is still relatively cheap and the cost to rent especially on Airbnb is shooting through the roof and in my opinion I think it's going to continue to be like that there's no place in the world that I visited I've visited a lot of places I've traveled to a lot of places there's just no place like Bali and with the crowd and the community that is in Bali a lot of people that come there want to stay there because there's also no other islands where you can find a community like that so I think Bali is going to continue to be like that sure it might get crazy it might get more packed but I think from a rental perspective it is just going to continue to get more packed and is going to continue to get more expensive so that is why we decided to invest now to cover the second step when it comes to purchasing land I'm going to cover this in more depth in another video because otherwise this video is going to get way too long but just to give you a quick summary of this right here when it comes to purchasing land there's four stages that you go through the first stage is finding the land once you find the land you need to make sure that it is zoned properly so in Bali they have green zone a lot of times Indonesians will try to sell you green zone land which technically isn't allowed and they'll say oh it's okay we'll sweep it under the rug you just pay off the Bali Mafia and nobody's going to hassle you about it for us obviously we don't want to be taking risks like that so our property is what's called a pink zone or a purple Zone and this is actually allowed for commercial use and they have a website I'll share that again with you guys in upcoming videos where you can actually check the zoning of where the land is now as long as you are in one of these purple or pink or orange zones you're basically good to go to start building and the good thing about Bali in contrast to you know a lot of other places like building in the United States is it's very easy to begin building so in California it might take you 2 years just to go through the approval process to get the legal paperwork done and the approvals from California is government to be able to actually start building on your land whereas in Bali it's still a developing country a lot of things can happen a lot faster and basically as soon as you purchase the land once you have the architecture drawings you can get things approved in 3 weeks and you can start building immediately so this is great from an investment perspective and this is why so many investors and Builders are flocking to Bali is because it is so easy to find a lot of land begin building on it immediately and start renting it out right away this is very rare to find in other countries now that's the first step once you find the land you have the proper zoning you know you can rent it out you're going to need to find an architect and a contractor now the biggest mistake that I made and this is the mistake that actually cost us 6 months and what caused us to fire our previous contractor and that was due to the decision to work with an all-in-one agency and you see this all over the place in Bali these agencies that promise to do everything they do the Contracting they do the architecture they'll even find the land for you you and it sounds nice because they pitch you with oh we have one point of contact you work with us we'll build you your dream Villa and we handle the whole project for you so just like most other people who are new to building we decided to go down that route and from what I've seen unravel over the past few years this is where every single project goes south and the people that have the worst experiences end up having the biggest losses and this is why I'm really happy we ended up actually pulling out of this company and going with a different approach before we were too deep in with them and we actually didn't end up losing any money with them so you know there was nothing really to complain about there other than the six months that we wasted with them and the reason why you don't want to work with an agency where they take care of everything is because the contractor and the architect are incentivized to work together and what I've realized is when you're building the contractors they always want to cut Corners they might want to get cheaper materials they might want to you know charge you for premium materials and then deliver sub premium materials and keep the difference they might want to cut corners on the actual build when it comes to the quality and finishing of the build and they might try to cut corners on the build to again pocket that difference and when the contractor is working with the architect and the project manager and they're all working for the same company there is no incentive for them to keep each other accountable because they are all in each other's Pockets right so why would the project manager snitch out the contractor when they're working for the same company they're not going to come to you and tell you this information because it's you against them and that is where all of these projects begin to go south so what I've realiz is the best setup to have is have a contractor that is responsible for building then you have a separate architect the architect is responsible for architecting the house down to a such a minute detail there's Absol absolutely no way to mess it up and then once you have the architect Maps everything out in such fine detail this is what holds the contractor responsible and then you have a third party project manager what we're going to do is we actually have a project manager that is working side by side with the architect who then checks up on the contractors while they're building the house every week to check the architecture drawings check what's happening in the real world and since they're working for the architects Architects are not working with the contractor and The Architects work with us to make sure that the house is built how we want and therefore if there's any issues with you know contractors trying to cut Corners they have no problem snitching out the contractor because that is what they're paid to do right and then usually what you have is you have some type of contract with the contractor where it's like look if you do things wrong everything is outlined inside of the architecture drawings which is basically your contract with the contractor if they do anything outside of the scope of that contract they are going to be responsible for paying for the changes so I've talked to plenty of Architects now and this happens all the time in Bali right sometimes they have to build a foundation and they try to skimp on the iron that they put inside of the foundation and the architect ends up having to replace all of the foundation because the project manager went checked they said hey you're not using the right materials here you're using cheaper materials or you're using less materials than we actually speced out in the architecture drawings and you're responsible for that and a lot of times that will happen so you want to make sure that the architect and the project manager are in your pocket and then they work against the contractor to hold them accountable to a higher standard so that is the one mistake that we made in the initial start is we worked with an all-in-one agency but again after 2 months 3 months of research we realized very quickly that that was a big mistake and before we actually started the build with them we pulled out it was a very painful process because we were really eager to begin the build but we realized look if we want to build this house we want to build it the right way and we don't want to make a decision that we're going to regret 6 months down the line so we pulled out from them we found a different and actually way better contractor and a way better architect and now we're working with them two individually so other than that that is basically it for this video now where we are at currently is we are still in the architecture phase so just last week is when we got all of these drawings back and as you can see everything is being mapped out with the architects now we have the land is already purchased and what we have now is just a few little polishing finishes that we've sent over to the Architects to really get the house exactly the way that we want it we're expecting that with the next round of revisions the house is going to be exactly the way that we want it and then once we fully approve these designs that is where they then go through the designs and they actually start to do the architectural drawings where they sketch out every single centimeter of the house and how it needs to be built and this is also something that you want to pay attention to if you're working with Architects look at their past work and look at how detailed their architectural drawings are because the previous architect from the all-in-one agency when we looked at their drawings their whole drawing for a whole house was like 10 pages right there were no architectural drawings it was basically just a sketch like what you're seeing here whereas the new agency we're working with the architectural drawings we're about 200 to 350 pages long and they're going down to every single crack and crevice in the house to sketch out exactly what it needs to look like and the exact measurements it needs to be built out so when the contractor builds it he already knows I need to get a 2x4 it needs to be 11.5 cm long and it needs to slide exactly into this space here so that is exactly what you want to look for if you are looking for an architect and that is the stage that we're in right now so in the next video what I'm going to be breaking down is how we actually designed the house because this house took us many many many months to design it wasn't just something that we left up to the Architects to design because in my experience most of the time whenever I work with anything creative and I leave it up to someone else to take care of completely unless you're working with like an awardwinning architect that is probably way out of your budget they're usually going to be some type of disappointment so for us we created a very streamlined process to be able to build our Dream House work with the Architects and make it very clear to them what style we wanted and how we want the house built and then leave them there to fill in 20% of the remaining gaps to actually build the house how it needs to be built and obviously build something that's structurally sound so if building a dream house is something that you are planning on doing and you want to figure out a process that you can use to get your house exactly the way that you want it to be built with any architect that you work with in the future that's what I'm going to be sharing with you guys in the next video this process has saved us countless of hours with our Architects and made everything super clear super simple and has resulted in us now having a fully architected house that is exactly the way that we want it so other than that that's it for this video hopefully you guys enjoyed this if you guys want to see more videos like this subscribe to the channel because I'm going to be uploading a whole series documenting the entire house build and with that said that is it for this video I'll see you in the next one peace
