Aleksandr Guliaiev is an entrepreneur who arrived in Bali 3.5 years ago. He was struck by the flow of 5-6 million tourists a year, which grows every month. The market turned out to be promising, so Aleksandr Guliaiev founded Legion Real Estate. Its goal is to find beautiful villas, cottages, penthouses, select a good developer and help people make a purchase.
Aleksandr Guliaiev – founder of Legion Real Estate
Apartments for tourists, for leisure or work, located on an Indonesian island 10,000 kilometres from Europe. What steps are needed to find and purchase a good property?
The expert shared his experience on how to buy houses in Bali and earn passive income on the other side of the equator. Before using the recommendations, let’s make sure of the expertise of Legion Real Estate and Aleksandr Guliaiev. Client testimonials provide insight into the effectiveness of his strategy.
Recognizes Legion Real Estate
What is known about Legion Real Estate and its owner
Legion Real Estate came into existence in Bali at the end of 2022. A year later, it has already become the largest on the island. The agency helps people buy property with a projected annual return of 10-15%.
Alexander Guliaev and his team conduct a comprehensive free pre-sale verification process. For this purpose they use an IT-system of their own development. The entrepreneur is confident that the system protects against fraudsters and risky investments.
Aleksandr has been working in the property market since 2020. At first he worked in Kyiv, then in Turkey, and thought about Dubai or Miami. Eventually settled in Bali, moved his wife and son, bought a villa in the Citadel complex and manages a team of 47 brokers.
Photo of Aleksandr Guliaiev at work
Step-by-step guide to buying property in Bali – recommendations from Legion Real Estate
The step-by-step guide consists of seven steps, Aleksandr Guliaiev explained.
The first step is the selection of locations and objects
The investor should find several property options. A pool of units in different districts, with different purposes and prices, is formed. After that, the selection process begins. The result depends on the criteria that are important to the buyer.
Why is this important?
Different properties are suitable for different investment strategies. Possible strategies include long-term capital growth, passive rental income, or asset diversification.
How Legion Real Estate helps
Aleksandr Guliaiev’s company offers its own portfolio of properties in Bali. The agency then helps clients make a choice based on their investment strategy.
Legion Real Estate ranked first in sales from the property developer LOYO & BONDAR
The second stage is the financial model
The buyer must study the terms and conditions set by the developers. Do they offer properties at the presale stage or ones ready for occupancy? What is the rate of return? Does it correspond to the real situation on the market?
Why is this important?
Developers can overestimate yields:
- because of outdated or averaged figures;
- because of ignoring the real situation on the market.
What Legion Real Estate offers
The company has created an IT service that collects up-to-date data on property:
- profitability;
- payback;
- occupancy rate;
- average property value in each region of Bali.
‘This allows us to find properties with the highest profitability for our clients,’ explained Aleksandr Guliaiev.
Screenshot from a video on Legion Real Estate’s YouTube channel
The third stage – pre-sale analysis
At the third stage, a potential buyer of a house should check whether everything is in order. Such a complete check is called Due Diligence. Aleksandr insists that it should be done without fail.
Why is it important?
The investor receives full information about the object and:
- protects himself from fraudsters and reduces risks;
- understands the real value of the object;
- makes sure that the property will be profitable.
What Legion Real Estate does
The company does all the work for the investor. In particular, it checks the land title documents and the accuracy of certificates. It also establishes whether the building is accurately erected in the development zone. Another question is whether all taxes have been paid and there are no disputes about the land.
All checks are free of charge for the company’s clients, Aleksandr Guliaiev noted.
Photo of Aleksandr Guliaiev from social networks
The fourth step is to conclude a booking agreement
A reservation agreement is required to secure the property for the buyer. This is not a sales transaction but rather an agreement on the intention to purchase within a specific period at a fixed price.
Why it is important.
The investor gets a guarantee that no one will buy the selected property. In addition, the price is fixed. There is time to check and think things over again.
What happens:
- the price of a unit (flat in a house, villa, hotel, townhouse, duplex, etc.) is fixed in the transaction.
- the deal fixes the terms of instalments;
- the buyer makes a deposit. The usual deposit amount is from $2,000. The amount depends on the developer and is mostly non-refundable.
The conclusion of the booking transaction is also accompanied by Legion Real Estate. Aleksandr Guliaiev noted two important aspects:
- The reservation is valid for a fortnight. During this period it is necessary to make a deposit and draw up documents.
- The transaction can be signed remotely using an electronic signature. There is no need to be physically present.
Choosing a property in Bali
The fifth step is the execution of documents
At this stage, the developer prepares a set of documents to finalize the investment. The process begins after the deposit is made to the developer.
Why it is important.
The buyer gets legal guarantees that the deal is clean and that he really becomes an investor.
What the buyer receives from the developer:
- The investment agreement;
- land documents;
- proof of payment of all taxes;
- documents about the developers and founders.
Aleksandr explained that even this stage does not require the buyer to go to Bali. Legion Real Estate brokers will make sure that all the necessary papers are in order.
Legion Real Estate team photo
The sixth step is to begin payments
At this stage, the buyer starts paying for the property.
How it happens:
- after the contract is signed, the developer generates an invoice (invoice);
- the investor makes the first payment. The size of the first payment is 30-45% of the value;
- further – payment in instalments. Payments are made according to the agreed schedule in certain instalments.
Real estate transactions in Bali are conducted in Indonesian rupiahs. The exchange rate is 15,000 rupiah per US dollar.
Why is it important?
Aleksandr Guliaiev said that there are new opportunities.
- The owner of a villa in Indonesia is entitled to a resident visa KITAS (Kartu Izin Tinggal Terbatas). This visa is a temporary residence permit.
- If the owner of the villa would like to rent it out, he needs to open an account in a local bank.
Photo of CEO and founder of Legion Real Estate
Seventh step – registration of ownership
The investor formalises the ownership right after the object is put into operation. The Legion Real Estate website states that the construction cycle in Bali is 1.5-2 years.
Why is it important?
The investor becomes a full-fledged owner of the finished house. After that, he decides what he will do next. One of the options is to rent it out and receive an average of 15% profit. The second is to sell, earning up to 30%.
What happens at the final stage:
- Registration of ownership of the new property;
- if necessary, the owner executes a leasehold. Leasehold is a long-term lease of the land on which the house stands;
- the buyer makes two payments. The first is a value added tax of 11%. The second is for the services of a notary, 1% of the value of the property.
A notary is required to be present when property rights are registered, Aleksandr emphasised.
Information about Bali on the website of Legion Real Estate
Reviews about Legion Real Estate
The Instagram page of Legion Real Estate agency has testimonials from people who have invested in property in Bali.
‘Helped to find the most optimal project. Constantly helped, supported, sometimes even achieved additional conditions during negotiations with the developer and the contract. We considered Virgin Beach hotel and Pandawa Dream. We decided on the second one, signed the contract and made the first payment.
‘At first I was looking for property on my own, then my friends recommended Legion Real Estate. I read reviews about this agency and decided to contact them. The staff found me a great project with excellent conditions within a week, which was not offered to me by others. So, thank you for the experience!’
Photo of Aleksandr Guliaiev in Bali
Conclusions
You can buy a villa in the Tuban area with ocean views. Or a cottage in the Bukit area for work or leisure. Or a penthouse near Dreamland beach. There are seven steps to getting these homes. Each step requires knowledge of the law, finance, understanding of the Bali market.
At the very beginning of the journey, the investor chooses between two options. The first is to act independently and for this purpose to travel personally thousands of kilometres away. The second – to find a local broker and do everything remotely. Reviews show that it is possible to entrust this matter to Legion Real Estate. Aleksandr Guliaiev knows that his clients will profitably invest in property in Bali and will be confident in the legal purity of the new property.
