1 hectare Beachfront Property, Swiss Beach, Sumbawa

1 ht SwissHajib Beachfront Property, Sumbawa, Indonesia

 

The property is 1 hectare located on Swiss beach with approximately 100m of beachfront.  The property is presently being farmed by a local (corn) under an agreement between the owner and farmer.  This type of agreement with a local farmer is beneficial to both owner and farmer.  It ensures the property is utilized and not allowed to be overgrown as well as being "protected" by their farmer preventing any destruction of the property or any squatters from settling on the land.

Presently there is no development on this beach.  There is a local village near by and good paved road from Sekongkang and the airport.  This beach area is prime location and distance from Sekongkang which will be targeted by the local government to invest in the tourist industry and is less than 3 km from the airport which is to begin operating flights in 2017.

 

The asking for this property is Rp 8,000,000 / are or us$ 600 / are 

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

This equates to (600 * 100) = us$ 60,000

1 ht SwissHajib Beachfront Property, Sumbawa, Indonesia
1 ht SwissHajib Beachfront Property, Sumbawa, Indonesia

The property has approximately 100m of beachfront, is all flat land with scrub brush with a few trees.  The property is presently being farmed by a local (corn) under an agreement between the owner and farmer.  The land in pretty flat with minimal forestation.  There is an access road from behind the property which would need improvement.  There's is also municipal water and electricity along the road behind the property approximately 200m away.

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.

 

 

My Opinion:

I like this property.  

The property is flat and relatively clear without the need to deforest.  The beach is beautiful white sand, clear turquoise water good for swimming.  The soon to be operating airport (2017) is also about a few km west down the beach highway.  For surfer clientele, the "Tropical" wave is also just west down the beach with all the beaches and villages in the area a short scooter ride away.

I feel property on this beach will double in value within 3 years making this a good "land banking" investment.  Theres no doubt in my mind this is the "next" beach area to be discovered.  A great "land banking" investment.

As an added bonus, the property is presently being farmed by a local and I believe this agreement could be continued during the term of the project benefiting from the present usage and protection by the local farmer.

The Investment Concept;

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

As an investment, the property would now have good road access with 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$ 60,000

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$ 10,000.

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

Summary:      
  Property Purchase Price US$ 60,000
  Purchase Tax (5%)   3,000
  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%   600
  Service Installation   10,000
  Total Investment Package US$ 90,600
       
Return:      
  Property Sell Price (3 * original value) US$ 180,000
  Selling Tax (5%)   9,000
  Legal Fees   2,000
  Administrative   3,500
  Gross Investment Return US$ 165,500
  10% BTPI.Co (minus our 1% & annual admin)   8.950
       
  NET RETURN TO INVESTOR (S) US$ 156,550

 


Download the PDF for this property portfolio here - 1 ht SwissHajib 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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