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Whoever buys from you is buying the years that are left then, not the years that are left now. In a market with no published sold prices, that is the number that sets the price.
Bali leases are commonly written at 25 or 30 years. What is left today is what you are buying.
Move this to the year you expect to sell. Whoever buys is buying the years left at that point, not the years left today.
The one assumption in the model. Higher means the far-off years are worth less today, which flattens the early part of the curve and steepens the end.
In 10 years, whoever buys this lease is buying 18 years, not 28. In a market with no published sold prices, years remaining is the number that sets the price, so about 17.1% of what you paid for the term has gone, whether or not the building has been looked after.
The instinct is that a thirty-year lease loses a thirtieth of its value a year. It does not. What you own is the use of the property for the years remaining, and years thirty years away are worth less today than years next year, so losing the far ones costs little and losing the near ones costs a great deal. The result is a curve that is nearly flat at the start and falls off a cliff at the end.
The practical consequence is about timing. A lease with twenty of thirty years left is still holding most of its value; the same lease with eight left has lost most of it. If you intend to sell, you are selling into the steep part of the curve unless you plan the exit years ahead, and six to twelve months is a realistic sale period here, which is time the clock keeps running through.
Extensions change the picture, and only if they are written properly. An extension stated to a fixed further term at a stated or capped price is worth what this tool shows. An extension “at market rate” with no cap is not a term at all. It is an option written against you, exercisable by somebody who knows exactly how much you need it. Read the clause before you read the brochure.
Every leasehold development in our collection publishes its years remaining and, where the contract states one, its extension terms. The same curve runs on each of those pages against that scheme’s own numbers.
Seven questions about your stay permit, your horizon and what you want the place for. It names one of leasehold, Hak Pakai or a PT PMA, and shows what taking it costs you.
Put the brochure's nightly rate and occupancy in. Watch commission, running costs and the final tax on gross rent take it apart, line by line.
BPHTB, notary, diligence, company setup, furnishing, then what it costs you every year, which nobody quotes. Every line explained and totalled.