TWO 1 hectare Properties, Sekongkang Village, Sumbawa
The two 1 hectare lots border the road and run towards the left in the picture. They are presently being used as fish ponds but the owner said he has harvested the last crop from them and will be filling them in in preparation for sale. The owner says they will both have roads on all four sides as well as electricity brought to each.
The asking price for these properties is Rp 20,000,000 / are, or us$ 1,507 / are.
Note: remember, there are 100 "are" in a hectare.
This equates to (100 * 1,507) = us$ 150,700 for each lot.
In the pic above on the left you can see the location of the properties in relation to the Sekongkang area with an overhead view on the above right pic.
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;
Either of these two properties are perfect "Land Banking" concept types of an investment. They are in prime locations to take advantage of the future growth of Sekongkang village. They are both well serviced with roads for easy access. The present owner will run electricity to either or both properties. He will also fill the ponds to a reasonable height.
After the purchase, we suggest adding more land fill to the property to increase the soil depth by 1/2 to 1 meter. Landfill is not expensive in the area. We also suggest installation city water as well as drill a well or two to increase attractiveness to the property. As a "Land Banking" investment we would then leave the land as is for at least 3 years and maybe up to 5 years then sell it whole at an estimated 2-5 times purchase price. Another option, is to partition the property into 3 or more parcels. Smaller parcels may be attractive to individual investors wanting a "Lot" of 5-20 are for their personal second home or for a business requiring less than 1 ht.
The Estimated Investment Project Breakdown and Estimated Return;
Concept 1 - Land Banking
Asking Price: us$ 150,700
Service the property in the form of extending the road access, drilling wells and/or running city water and electricity into the property and adding landfill is estimated at us$ 10,000.
This project has a 5 year timeframe.
|Property Purchase Price||US$||150,700|
|Purchase Tax (5%)||7,535|
|Annual Property Taxes (5 years)||2,500|
|Annual Admin Fee (us$ 1,400/yr)||7,000|
|Total Investment Package||US$||186,742|
|Property Sell Price (3 * original value)||US$||452,100|
|Selling Tax (5%)||22,605|
|Gross Investment Return||US$||423,995|
|10% BTPI.Co (minus our 1% & annual admin)||33,893|
|NET RETURN TO INVESTOR (S)||US$||390,102|
Above are the available properties in Sekongkang identified by BTPI.Co
updated May / 17