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Where are the real estate corona prices?

We often get requests from clients if we have properties for sale with “corona prices”. Or asking if we have real bargains for sale. We are sorry to inform you, however, we simply don’t have them. Why are there no real bargains to score at the moment? We have some ideas of what the reason might be.

 

         Local versus foreign owners.

 

For sure the local Balinese economy is suffering because of the current situation. If you are having a job which is relating to tourism, then you will have a tough time. If you also have bought a home with a mortgage, then you will be hit extra by the current crises. Those people might get in troubles and put their home on the market, sometimes with low prices. Or the bank will take over the property and resell it at a lower price. However, in general these are not the properties foreigner are looking for.

Foreigner however have bought their home already. They have paid already for their lease and don’t have the pressure to pay a mortgage. If you have bought your property as an investment, then of course you still have to pay for your running monthly costs, without having an income. However, most people have a buffer so they still can pay these costs. At the end, there is probably no real pressure for the foreign property owner to put their house on the market with a low price.

 

         The fear for a (hyper) inflation.

 

At the moment, US Dollars and Euros are printed in large quantities. Probably necessary for this moment, however, there is a risk for (hyper) inflation. Money in the bank is not generating any interest. Currently you see that people with money are spreading their risks and invest in shares, gold, silver and even bitcoins. The prices have increased a lot in the last months and it is to be predicted that we are not at the top yet.

Another option to spread your risk is in investing in real estate. In general, average prices for real estate worldwide are stable or even went up in the last months/year (https://www.globalpropertyguide.com/home-price-trends).

Okay, buying a property in Bali with less than 5 years lease left, is not the right investment in case you want to spread your risk, you will do this to enjoy the property. However, properties with a lease of more than 10 years are interesting.

 

We are curious what your thoughts are about this current situation. Please leave a message at the bottom of this blog.

 

Okay, lets finalize then with a “bargain”. We can offer an off-plan studio in Pererenan. There will be about 23 years lease left after finalizing the building. There is only 1 studio  which we can offer for a price of USD 69.500, without furniture and AC. You want to have a complete studio including furniture and AC, then the price will be USD 79.500. This studio will have a smaller plunge pool and parking, the rest will be the same as the other studios. Find more information about these studios in the link below.

 


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Comments: 1
  • #1

    Rangi (Tuesday, 08 September 2020 00:41)

    Just because you don't have coronavirus prices doesn't mean they are not around. There are a lot of them around... People are trying to hold off, but the reality is this is going to be going on for a long time. As time goes on, more and more covid-19 prices will come..