While purchasing property in Sydney remains increasingly out of reach for many, one Sydney father and his group of friends found an alternative property venture in Lombok.
Stephen Jones and his friends first purchased a block of land around early 2022 in Kuta in South Lombok, where they constructed a three-bedroom, three-bathroom villa for around $300,000 all-in, less than a quarter of Sydney’s median dwelling value.
What began as an opportunity to combine holidays and investment among friends, has since grown into a successful short-stay accommodation venture with the first villa booking out so consistently, they have since built four more nearby.
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Mr Jones with his friends on the vacant block before building 2022
“We set up an Indonesian company with foreign shareholders, we got it all set up properly, legitimately and legally, all those things, which is really important and once we completed that thee-bedroom, three-bathroom villa, it was renting out well,” he said.
“We were very happy with the quality, the construction quality, architect, lawyer, accountant, neighbours, property agent, all our partners we were very happy with these people.”
When an opportunity arrised to purchase another block of land opposite, they did, driven by the positive experience and cash flow coming in from the villas rental guests.
Mr Jones said the group purchased the next block of land, where they subdivided into two smaller blocks and built a one-bedroom villa and also a new two-bedroom villa.
“So, a total of three villas we built and we have some other friends who we encouraged to do the same, bought the block next to us,” he said.
“They built another two, so we really have sort of five villas next door.”
Villa Mariposa three-bedroom, three-bathroom private villa with pool typical Airbnb AUD 280 per night
Stephen Jones (L) with friend in the Villa Mariposa pool
The typical Airbnb rates for the villas include $145 AUD per night rate for the one-bedroom Villa Chinchero, $210 AUD per night rate for the two-bedroom Villa Whitehaven and $280 AUD per night for the three-bedroom Villa Mariposa, each with a private pool.
Mr Jones said some of the driving factors to build in Lombok included its lifestyle appeal, tourism growth and infrastructure investment including its international airport.
“We lived in Singapore for close to 10 years. So, this was a great jumping off spot through Southeast Asia and one of our favourite places was Indonesia and Lombok in particular,” he said.
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Villa Chinchero one-bedroom, one-bathroom private villa with pool typical Airbnb AUD $145 per night
Stephen Jones and friends Lombok in 2022
“We could just see with the airport, the infrastructure, the money the government was putting in there locally and the thriving food and beverage industry, restaurant scene, the eco-tourism, the hiking, surfing, it’s world class.
“It was just so obvious to us that this was going to be a really good opportunity both from our investment perspective and from a leisure holiday and experience perspective.”
This comes as Former Sydneysider and principal of Reef Property Lombok Tom Merrett says he has noticed a shift among investor buyers looking beyond Australia for property options and particularly in Lombok.
Mr Merrett, who spent close to two decades in commercial property in Australia before moving to Lombok where he now lives full-time, said two years ago Aussies made up 15 per cent of customers and now it hovers around 50 per cent.
Mr Jones said the endeavour has provided a nucleus for the friends that “keeps people together”.
“It gives them common interests and common things to stay in touch in and have lots of family holidays with friends that are involved and also boys’ trips,” he said.
“All these good things from a family and a friend group perspective.”
Villa Whitehaven: tw0-bedroom, two- bathroom private villa with pool has a typical Airbnb rate of AUD 210 per night
Mr Jones said the Indonesian government want investment to come in and encourage this from foreigners.
“They’re keen and welcoming to foreign investment if it’s done in the right way and you follow the rules,” he said
“They’re encouraging and all the investment creates jobs and a positive multiplier effect for the whole community.”
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Mr Jones said the overseas endeavour has created a “nucleus” to keep friends together
The families in Villa Mariposa front garden on the way to a wedding in 2024
He added some insight for Aussies who might be considering embarking on a similar property journey.
“You need someone who’s sort of the captain of the team, so to speak, to drive the project forward and be that central point of decision making,” he said.
“For the people that embark in this adventure, if they want to build their own villa, they need the right professional advisers, people that are local that have experience, that understand international buyers needs.
“My cautionary word will be just find the right local partners that are proven and you’ll do very well.”
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