You have found your ideal retirement location. You have spent several months vacationing there over the last couple of years. Now you have decided to spend six months per year living your dream. One big question still looms on the horizon: buy or rent?
Both options have their unique advantages. If you choose to rent, you only pay while you stay. On a six month plan, you will "save" the cost of the six months you are away. You avoid the hassle of buying a property (especially daunting in a foreign country). No worries about maintenance costs, and if the landlord fails to maintain the property, just find another dream house to rent. You also avoid property tax, sales tax, and legal fees associated with buying property. In some countries (such as Indonesia) foreigners cannot own property, so rent/lease is your only option.
If you choose to buy, you fix your costs (rents can and often do, change year on year). But, as an owner, your investment will build equity. The question is, will the future equity cover the purchase and maintenance costs? Is it legal to purchase property in your dream location?
What if you could have the best of both worlds? Own, but only pay for the six months you stay? If Bali is your "ideal retirement location" then we have the answer to your dilemma. The Retirement Village at Tegallinggah is a non-profit, senior living cooperative located in beautiful North Bali. Owners in cooperatives own stock in the co-op and are granted a perpetual proprietary lease in the apartment of their choosing.
How does this work? If you are looking for your "six month" retirement home, buy 1 share of stock in the co-op for $65K USD. Then choose your six month period (April through September or October through March) and your apartment. During the six months you chose, you make monthly dues payments of $199 USD. Stock equity will increase 1% per year. On a six month stock purchase, that equals $650 USD per year. Your dues for six months per year equals $1,194 USD. Dues minus equity ($1194 - $650) equals $544. That is your actual cost per year ($90.66 per month). I challenge you to find a 60 square meters furnished apartment/house with these amenities for $90.66 per month anywhere on the planet: Housekeeping 6 days per week, weekly linen service, all perils insurance, complete home and property maintenance, reserve fund for future maintenance, property tax, TV, fiber optic internet, potable water, septic, gas, trash, 24/7 onsite security, onsite management, onsite concierge, twice weekly transport to the market/supermarket, two guest suites for visitors, 8x16 meter pool with swim-up bar, reflexology walking path, community center, sundown pavilion, garden space for green thumbs and ocean views. What is left? You pay your own electric ($20 per month) and food ($300 per month for a couple). That is $519 USD a month all in.
Too good to be true? What is the catch? It is completely true with no catch. Come and have a look. Choose your apartment. Customize to your liking. Put 10% down, balance due at move-in. Simple as that! No tax, no fees, no problems.