Buy or rent? Getting a raw land to start everything from scratch or an existing property to take over? In this article, we will go over the pros and cons one has to consider when they face the different options to invest in the Gili Islands.

Buy or rent?

Of course, whether you’re looking to start a business or simply looking to set up a personal home, the appeal of being a property owner is very seducing. And it definitely is an option to be considered! Why? The freedom of the freehold! Stating the obvious but… once it’s yours, it’s yours. Whether it is a raw land or an existing property, once you purchase it, there is no clock ticking whatsoever. There is no need to make any rushed decision since there is no end date and you have the time to think your project through. The constraints of your potential return on investment are also more flexible and you can feel more secure about the budget you want to invest in buildings or renovations.

On the other hand, leasehold is a very commonly chosen option when it comes to investing in Indonesia and the Gilis are no exception. Why? The budget of the rent! With an impressively booming real estate market over the last 10 years, purchasing a property in the Gilis can come at a substantial cost and not everyone can afford to do so. In this context, the leasehold represents the perfect alternative to acquire the rights of use on a property for several years at a reduced start-up cost. Leasehold contracts can come with payment plans agreed between the landlord and the long-term tenant and options to extend can be discussed, even decided upfront.

Leaseholds can also be a good option for those looking for a temporary investment before making any final decision of freehold purchase.

Raw land or existing property?

The prospect of building a place from scratch, exactly the way you thought it, exactly the way you designed it, exactly the way you want it, surely is something to be excited about. You don’t have to put up with someone else’s taste or interior design mistakes (at least in your opinion!).

Building your own property on raw land allows you to make your own choices on every single aspect of your project. You don’t have to adapt and try to make the most of what you have, you just decide what you’re going to have and make it perfect in your own eyes. Now, this is priceless.

Nevertheless, as exciting as this can (and definitely will) be if you chose that option, you have to keep in mind that you’re in for a long and rocky ride. Even though it’s definitely worth it, building from scratch in the Gilis, or anywhere in the world for that matter, is not a stroll in the park. Just be prepared, keep your cool and all will be well.

Of course, choosing this option will also lower the final cost of your project. However, it is wiser to hire a professional site manager to avoid unnecessary extra stress and costly mistakes.

If you feel building from scratch is too overwhelming or if this is simply something you’re not interested in, then you should definitely look for an existing property to take over. The Gilis being a highly touristic destination, there is a wide range of existing properties that can suit almost any taste. From the simple and authentic wooden cabins to the most high-end luxury villas, there truly is something for everyone. If you go with that option, the final cost of your project will most probably be higher than building (the same kind of property) from scratch. However, there are some undeniable advantages to it.

As mentioned earlier, building is a hassle, an exciting one, but still… By investing in an existing property, you avoid that step in your project and you can still go with some light renovations, which are usually much less demanding than building from scratch, to bring it up to your taste.

Time is a major factor as well in this decision-making. When purchasing or renting an existing property, obviously, you can enjoy it right away. If it’s a personal home, you just need to move in. If it’s a business, you just need to start operating. In both cases, the time saved will positively impact your final budget and should therefore be thoroughly considered.