4.7 hectare Beachfront Property, Sekongkang, Sumbawa

4.7 ht Sek Beachfront Property 1, Sekongkang, Sumbawa, Indonesia

 

In the above pic you see a river snaking into the ocean just left of center.  The beach to the right of the river is the property.  The property is 4.7 hectares and runs from the river to about 1/4 of the Beach to the right.  You can see a road running from 10 o'clock to 4 o'clock in the lower left corner.  The property goes from the beach to about a third of the way back to the road.  The road will be where the access road to the property that will be built, connects to.

 

Right now there is no road access to the property nor is there services (water, electricity) on site.  The seller has agreed to put a road into the property from the present road at the back of the property, described above, along the river into the property.

 

The property has a large hill in the East third of the property which has a cliff face facing the beach side and a steep slope towards the back.  There is also another hill to the right (West) of the property which has a smaller cliff face facing the beach.  The area in the Eastern corner bordered by the river, the beach and the cliff face is suitable for development as it has more than the 50 m of land available from the high tide mark.  The larger hill can be developed with road access and cleared on top for villa construction.

 

 

The asking price for this property whole is Rp 13,000,000 / are which equates to us$ 975 / are

(note: there are 100 are in a hectare).

For a total of: 470 * 975 = us$ 458,250.

 

The owner is willing to divide the property in half asking Rp 17,000,000 / are which equates to us$ 1,275 /are totaling 235 * 1,275 = for us$ 299,625.

 

 

4.7 Sek Beachfront 2, Sekongkang, Sumbawa, Indonesia
4.7 ht Sek Beachfront 3, Sekongkang, Sumbawa, Indonesia
4.7 Sek Beachfront 5, Sekongkang, Sumbawa, Indonesia
4.7 ht Sek Beachfront 6, Sekongkang, Sumbawa, Indonesia

 The left pics above are the beachfront corner of the property from the river mouth.  The pic on the right is basically turning around from the left pic and looking down the beach front of the property.  There's about 370m of beach front.

 

 

4.7 ht Sek Beachfront Property 7, Sekongkang, Sumbawa, Indonesia

From the Center of beach looking inland Left, Center, Right.

More about the Sekongkang area:

The property is in West Sumbawa. About 1.5 hr ferry boat from Lombok. The main airport in West Sumbawa is about 2.5 hrs away. The best way to get to this area of Sumbawa is by the "fast" boat operated by the mine and available to the public which leaves Benete in Lombock and docks at Kayangan in West Sumbawa about 15 min drive to Sekongkang.

The local village is called "Sekongkang". Lots of great surfing, fishing and beaches in the area all easily accessible by scooter.  The local government has made a commitment to invest in this area to increase tourism. A new hospital being built in the near by village and the nearby airport is suppose to start operating again in 2017.  About 6 miles away there's a big copper/gold mine that has been in operation for over 20 years.  This means the locals are comfortable with foreigners in the area. It also means the area is protected by the government.

The Investment Concept;

This is a perfect "Land Banking" type of an investment. After the purchase, we suggest minimal service installation (access road continuation, water, electricity) and literally sit on it for 3-5 years then sell it whole at an estimated 2-5 times purchase price.

During the first year or two, we would extend the access roads into the property from along the river where the owner will run a road, into the eastern portion of the property, drill at least one or two water wells and run electricity into the property from the back road along the river road access. As an investment, the property would now have access, water and electricity on-site greatly increasing it's value.

The Estimated Investment Project Breakdown and Estimated Return;

Concept 1 - Land Banking 

Asking Price:  us$ 458,250

Service the property in the form of extending the road access, drilling wells and/or running city water and electricity into the property is estimated at us$ 40,000.

This project has a 5 year timeframe.  All costs and fees estimated slightly high.

 

Summary:      
  Property Purchase Price US$ 458,250
  Purchase Tax (5%)   22,912
  Legal Fees   4,000
  Administrative   3,500
  Annual Property Taxes (5 years)   2,500
  Annual Admin Fee (us$ 1,400/yr)   7,000
  BTPI.Co 1%   4,583
  Service Installation   40,000
  Total Investment Package US$ 542,745
       
Return:      
  Property Sell Price (3 * original value) US$ 1,374,750
  Selling Tax (5%)   68,738
  Legal Fees   2,000
  Administrative   3,500
  Gross Investment Return US$ 1,300,512
  10% BTPI.Co (minus our 1% & annual admin)   118,468
       
  NET RETURN TO INVESTOR (S) US$ 1,182,044

 


Download the PDF for this property portfolio here - 4.7 ht Sekongkang Beachfront


 

 

GMap of BTPI.Co's available property in the Sekongkang area.

Above are the available properties in Sekongkang identified by BTPI.Co

updated May / 17

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