Bali Property Investment: Financing, Loans, and Construction Tips for Success

img Dea BukitVista | December 8, 2024

Hi there! I’m Dea, and I’m part of the PR team at Bukit Vista. As one of our PR initiatives, on December 3rd, we hosted our latest Round Table Talk at the Bukit Vista Bali Base. Through this discussion, we recognized that Bali property investment remains a thriving hub of opportunity for investors. However, achieving long-term success in such a competitive landscape demands a carefully coordinated approach to financing, construction, and operational excellence.

This session brought together an impressive lineup of key players and property stakeholders. Among the participants were Astrawan and Suarsana from KSP Guna Prima Dana, who shared insights on financial strategies, and Tomi, a contractor with an outstanding track record in property development. Joining the discussion were property owners like Made Sandra, owner of multiple villas in Pecatu; Nicky Verhoven, owner of Balincia Villa; Hima, owner of a six-room Lumbung property; and Bukit Vista Team.

Bali Property Investment discussion
Round Table Talk Participants on December, 3rd, 2024

Construction and Maintenance Collaboration in Bali Property Investment

Construction quality and ongoing maintenance are pivotal in protecting an investment. Hereby, Marcel, our President of Operational of Bukit Vista opened the discussion by reflecting on Bukit Vista’s remarkable achievements at Casa Caruna, now managed under our operational team. He highlighted the critical role of property management in delivering an exceptional guest experience. “When Bukit Vista took over Casa Caruna, our focus was to ensure the property not only met but exceeded guest expectations,” he said. Marcel credited Bukit Vista’s operational property managers—Tendi, Raditya, and Alfasya—, and the contractors for elevating the property’s standards. “With Tomi onboard as the contractor, every operational detail has been handled flawlessly, resulting in a property that consistently mesmerizes guests without any operational hiccups.”

Casa Karuna's Profile

During the Round Table Talk, Marcel elaborated on the new initiatives, shedding light on how Tomi will play a pivotal role in elevating Bukit Vista’s maintenance standards. Marcel explained that Tomi will begin by introducing a Quality Standard Checklist tailored for property inspections. This checklist will focus on key elements such as Mechanical, Electrical, and Plumbing (MEP), and amenities functionality, ensuring every aspect of the property meets the highest standards. 

At Bukit Vista, we approach property management with precision and strategic foresight. Our Business Plan document serves as a comprehensive blueprint for owners. Once the Business Plan is conducted and a deal is secured, the Operational team will evaluate the property on two main fronts: guest experience quality—covering amenities and operational readiness—and property attributes, focusing on core elements like plumbing, electrical systems, and structural soundness. “Tomi’s expertise will ensure that no detail is overlooked, setting a new benchmark for maintenance across all properties,” Marcel remarked. He emphasizes that integrating these standards into our business plan strategy is pivotal for positioning our properties within the top 1% of the market, reflecting Bukit Vista’s commitment to excellence and leadership in the hospitality industry.

One of the most exciting developments is Tomi’s involvement in trial projects. Starting with properties like those managed by Radit, the trial will involve Tomi producing comprehensive maintenance reports for newly onboarded properties. These reports will include detailed evaluations and actionable recommendations for immediate and long-term maintenance needs.

A unique aspect of Tomi’s approach is his flexibility in initial inspections. He has agreed to conduct these evaluations at no cost, providing property owners with clarity on the condition of their assets before committing to further services. This ensures trust and transparency in the partnership, as Marcel noted: “Tomi’s willingness to prove his value upfront is what sets him apart and reinforces the collaborative spirit we’re building at Bukit Vista.”

Financing and Loans in Bali Property Investment

The conversation turned to the financial side of property investment, where Marcel addressed the reliance of many Balinese property owners on cooperatives like KSP Guna Prima Dana and LPD (Lembaga Perkreditan Desa) to finance villa development. Astrawan and Suarsana emphasized how KSP structures flexible loan terms to align with a property’s income potential, prioritizing stability and sustainability. “Our role is to support the property owner while ensuring stable repayments,” Suarsana said.

Marcel elaborated on the connection between loan stability and revenue performance, emphasizing Bukit Vista’s role as a trusted partner. By driving strong occupancy and revenue for properties like Bli Sandra’s villa, as attached below, Bukit Vista provides financial institutions like KSP with a reliable assurance of stable loan repayments. “When properties perform well, it’s not just the owners who benefit. KSP also gains confidence in the repayment process, creating a cycle of sustainable growth,” Marcel explained. This approach positions Bukit Vista as more than a property manager—it becomes a guarantor of revenue performance that directly supports the financial ecosystem of Bali’s property market.

Marcel added depth to this discussion by explaining Bukit Vista’s dynamic pricing model and its impact on loan repayment schedules. Properties like Bli Sandra’s villa have thrived under this approach, generating strong revenue performance. However, Marcel pointed out a key nuance that needed to be addressed: with dynamic pricing, revenue fluctuates between peak and low seasons. Consequently, the loan repayment amounts can vary from month to month. Marcel explained this concept to KSP representatives, ensuring they understood the seasonal nature of Bali’s tourism industry and how Bukit Vista’s dynamic pricing model works to stabilize cash flow over the long term.

Foreign Tourist Visit during Low and Peak Season
Booking Rate Projection during Low and Peak Season
Dynamic Pricing in Bukit Vista

He reassured the financial stakeholders of Bukit Vista’s role as a guarantor in this process. “We don’t just optimize revenue; we actively work to ensure that loan repayments align with income patterns,” Marcel said. He emphasized the importance of transparency, noting that Bukit Vista ensures all parties—property owners, KSP representatives, and even contractors—are knowledgeable about the financial dynamics of the properties they are involved in. This shared understanding builds trust and reduces risks for everyone.

Inspiring Insights from Nicky Verhoven: Bukit Vista’s Newest Partner in Property Management

During our recent Round Table Talk, we were thrilled to have Nicky Verhoven, a soon-to-be onboarded partner, join the conversation. Hosted by Bukit Vista’s co-founder, Wayana, Nicky brought a fresh perspective to the table, sharing his inspiring journey as an entrepreneur and investor while delving into the intricacies of Bali’s property market. His property will soon go live under Bukit Vista’s management, marking the beginning of an exciting collaboration.

Balincia Villa

During the discussion, Wayana introduced Nicky to the dynamics of Bali’s construction and financing landscape. She explained how cooperatives like KSP Guna Prima Dana provide essential loan services to local property owners, enabling villa developments that align with Bali’s cultural and environmental context. Nicky expressed his newfound appreciation for the role KSP plays in empowering local communities while supporting Bali’s broader property ecosystem. Wayana elaborated on how Bukit Vista collaborates with contractors like Tomi to maintain seamless operations and elevate property value. This holistic approach resonated with Nicky, who is now more confident in navigating Bali’s property market as both an investor and a partner.

Conclusion

The Round Table Talk at Bukit Vista brought together property experts like Nicky Verhoven, Marcel, and Tomi to discuss practical strategies for thriving in Bali’s property market. From dynamic pricing for stable revenue to quality maintenance standards and financing insights with KSP Guna Prima Dana, the event showcased how collaboration drives success. 

Ready to unlock your property’s full potential? Join us at the next Round Table Talk and be part of the conversation shaping Bali’s real estate future!

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