Who's up for a slice of paradise?
What effect will this have on the local economy ?
Will this result in real estate lunacy as per much of Oz ,pricing the locals out of the market after they sell off the farm for a quick buck(or rupee)
What price for a prime block on the cliffs at Ulus(or that top secret Rip Curl spot Padang Padang)?
Will Noosa become a ghost town?
Bali legal change to trigger Aussie influx
Maurice Dunlevy, Deborah Cassrels From: The Australian April 12, 2010 12:00AM
Frank Fox has chosen Bali over Noosa for his retirement. Picture: Kelana Lauren Source: Supplied
AN Australian-led housing boom is tipped for Bali because of Indonesian plans to allow foreigners to own property for the first time from June.
With Bali entry level properties starting at about $US200,000 ($214,190), a rush of Australian buyers, especially cashed-up mine workers, is expected.
"The biggest attraction will be the difference in price," said Ray White joint chairman Brian White.
With 600,000 Australians a year visiting Bali, Mr White said the tourist paradise would attract buyers wanting either holiday houses or investment properties.
"The pricing will be excellent, and the location and cultural experiences will be second to none," he said.
The current ban on foreigners owning or renting property in Indonesia can be circumvented by using a local to buy or lease on the foreigner's behalf.
Foreign buyers can also own a property by setting up a foreign direct investment company, but according to Denpasar LJ Hooker owner Suryawan the freehold title reverted to leasehold after 25 years, an unattractive option for Australians.
"Australians just want to step off a plane and buy," Suryawan said. "It's very sad that economic growth has been held back by our laws."
Suryawan said three-bedroom villas, typically 300sq m in size, could be bought for about $US400,000.
Sydneysider Frank Fox has had a love affair with Bali since he began visiting the island in 1973, but it is only recently that he's called the island home.
Travelling back and forth for the past 10 years, the retired, cashed-up 62-year-old engineer had intended to put down roots in Noosa.
Instead, he's putting the finishing touches to a villa he rebuilt several months ago in the south Bali hub of Seminyak.
Gutting the house he secured on a 25-year lease for $US230,000 at Christmas, he built a two-bedroom villa opening to a garden and pool on the 750sq m property.
He paid $US35,000 to extend the lease and a further $100,000 for a total fitout, including a lap pool -- about half the cost he'd be up for in Noosa.
The Indonesian choice also ensures he can afford to keep his Sydney apartment.
Despite the coming reforms, Mr Fox preferred to lease the land. "I don't want to invest too much cash in this country because it's . . . not that stable. The outlay (to lease) is a lot less than buying the land. It means I have much more disposable cash ... I want to travel where and while I can."
Michael Gunawan, manager of Ray White in Kuta, said the economic crisis put the brakes on Australian buying.
"There is not much interest yet, just a trickle."
But he expected the new laws to spark a market rally.
Dominique Gallmann, owner of the Exotiq franchise in Seminyak, said Australians were looking at Bali more favourably as memories faded of the Bali bombings.