FREQUENTLY ASKED QUESTIONS

What is included in the purchase price?

1. Land plot
2. Villa construction
3. Hard furnishings and built-ins
4. Private swimming pool, landscaping and decks
5. Common area land allocation costs (land used for roads, community car park, entrance gate, security post / management office)
6. Notary fees for the purchase of the land, building development, and infrastructure as well as Preliminary Sales and Purchase Agreement. (The Final Binding Sales and Purchase Agreement are to be prepared and executed at the purchaser’s costs.)

Additionally, a proportionate share of project development costs related to the following are covered:

1. Access roads throughout the estate and to the boundary of the site
2. Landscaping of common areas and entrance
3. Roads and parking construction within the development
4. Water systems including drilling, design and construction, waste treatment plant and individual sewerage eco systems
5. Electricity installation and back up generator
6. Telephone connections
7. Project coordination fees
8. Miscellaneous related expenses such as but not limited to common area lighting, signage, and administrative costs until completion of project.

Is the sales price fixed or is there a chance that it will increase during the construction period?
Naturally, the developer reserves the right to increase sales prices throughout the course of the sales and marketing phase of the project. However, if a villa has been purchased and the necessary payment schedule as agreed by the developer is followed by the purchaser, then the sales price is fixed and will not be increased at all during the construction period.

What are the estimated monthly service charges?
For the one-bedroom beachfront and oceanfront pool villas there are no extra service charges to be paid by purchasers while their units are included in the hotel rental pool. For the three-bedroom residential pool villas, there will be a monthly basic service charge of USD800.00.

Will I own a specific unit or a share of the development?
Unlike a timeshare or cooperative, you will own your own villa.

Can I swap my unit for time at other luxury resorts?
Alila Villas Soori is an exclusive luxury resort and the one-bedroom beachfront and oceanfront pool villas are not available for swapping through other vacation destination rental programmes. The three-bedroom residential pool villas are private residences and owners are free to make swapping arrangements with agencies specialising in this type of business. However, such arrangements are to be approved by the management of the properties.

Can the owning family move into the one-bedroom villa after a year?
The one-bedroom beachfront and oceanfront pool villas are lifestyle investment properties and owners will be allowed to occupy them for no more than 30 days a year. Owners of the three-bedroom residential pool villas can use their units as their primary residence or as a holiday villa whenever they wish.

Do the properties come fully furnished?
The one-bedroom beachfront and oceanfront pool villas will be fully furnished at the expense of the developer and management company. The developer and management company will be responsible for the upkeep and management of the furniture and fittings for the 15-year management period. The three-bedroom residential pool villas will be furnished independently by the property owner. We suggest that owners select furniture and fittings that are in keeping with the management company’s guidelines if there is any desire for the hotel to manage and market the property to guests in the owner’s absence.

Is there a guaranteed yield for the three-bedroom properties?
As the three-bedroom villas are intended as private residences, there is no guaranteed yield. However, owners can derive income from authorising the management to rent it out in their absence, subject to agreement between the owner and the management company. The residential pool villas are ideal for families or groups of guests and it is likely that they can provide a quite favourable return on investment.

Are the complex, the manager and the hotel operation subject to an annual audit?
Yes, a reputable international auditor will be appointed for annual audits for owners’ benefit and peace of mind.

If a one-bedroom villa owner wants to stay in a three-bedroom villa, what are the arrangements?
The management company, Alila Hotels and Resorts, would calculate a credit for the one-bedroom villa owner, if they wish to upgrade into a three-bedroom villa for any length of stay.

Are there any extra special facilities included with the one-bedroom villas?
Yes, apart from being fully furnished and fitted, one-bedroom villas will be equipped with state of the art stereophonic equipment and televisions.

What happens after the 15-year management period?
After the 15-year management period, the owners of the estate will form an organisation known as a “Body Corporate” and such a governing body would choose whether to extend the Alila Hotels and Resorts management period, or to appoint another management group.

Will there be a cash call for renovations or infrastructure provision during the 15-year management period?
No. The management company and developer will maintain a sufficient capital expenditure account and will ensure that the property is attractive and well maintained.

Can a property purchase be financed?
Yes. Both Indonesian banks and international banks have indicated interest in providing mortgage finance to villa buyers. The mortgage period in Indonesia is 15 to 20 years. The total amount of down payment required will be a minimum of 20% of the property purchase price. Borrowings will be up to a maximum of 80% of the property value and can be in Indonesian Rupiah, United States Dollars or Australian Dollars at prevailing market rates.

How will I know if I qualify for mortgage finance?
By meeting and consulting with our sales agents and by providing relevant financial statements and supporting data to our mortgage finance providers.

If I own a one-bedroom villa, can my friends or family make use of my benefits if I am unable to?
Yes, you can transfer your 30-day free stay period to others. However, special privileges like discounts on food, beverages and other hotel services will not apply for anyone other than the property owner and their immediate family.

What if someone stays in my unit / villa and breaks items and ruins certain fixtures and fittings?
If hotel guests stay in either the one-bedroom or three-bedroom villas, the guests and any damage they cause will be covered by Alila Hotels and Resorts and their insurance. However, owners of three-bedroom villas should also insure their homes and contents separately in their own names with private insurance companies.

If I buy a one-bedroom villa and never use it, can I get a better return on investment?
Yes, by renting your unit for 12 months instead of 11 you would benefit from increased income. We encourage buyers to join in and be a part of our community and to make full use of their lifestyle investment. However, people’s situations change, and if you are unable to make use of the villa, this will be reflected in an improved investment yield. Do remember and recognise that the properties are managed on a rental-pooling basis, so the difference may not be dramatic when considering the averaging effect of this method of management.

Can I store my possessions such as bulky goods and sporting equipment in some form of locker or safe storage as an owner of a property within the complex?
Yes, the developer and management will provide secure storage facilities for villa owners.

If I buy and live in my three-bedroom villa, what will be included in the monthly US$ 500 maintenance fee?
The common facilities of the villa, private garden areas and swimming pools will be maintained. Common areas and private villas will be provided 24-hour manned security patrols and closed circuit monitoring. In-villa services such as cleaning and linen changes will only be provided on request and will be subject to separate charges as determined by the management.

If I buy and stay in my one-bedroom villa for 30 days or less what is provided in terms of villa up-keep?
Your villa will receive full hotel management services 365 days per year. It will be kept as an active hotel villa and will be provided with full guest services.

Will I experience capital gains?
Real estate in Bali has been experiencing phenomenal capital gains for the past 10 years. We believe that this unique property offering and our projected yields will translate into excellent lifts in capital asset values.

Can I leave the property to my family?
Absolutely. The property is offered to you for sale. You and your family will own it. You will be provided with a Hak Guna Bangunan (HGB) land certificate that will incorporate the underlying land and the building and improvements built upon it.

Will Alila Hotels and Resorts take care of the properties?
Yes. The developer and the management company have an ongoing financial interest and responsibility in ensuring that the property is maintained to the highest standards, marketed innovatively to ensure high occupancy levels, plus continually increasing nightly room revenues.

What if there is a tsunami?
In written history and in geological terms, there is no evidence that Bali has ever experienced tsunami conditions. The deep ocean conditions and the geographic location of the tectonic plates make such an event highly unlikely.

What if there are more terrorist events in Indonesia?
Indonesia is a vast archipelago. It is a complex country with a wide variety of languages and religions. If terrorist events occur in Indonesian locations other than Bali, the negative effect on your property investment will indeed be limited and temporary. Terrorist events happen anywhere in the world, from London to New York. No location is immune. We feel the likelihood of another event in Bali is low and that the Indonesian Government and people realise the importance of a safe and clean Bali with the flow on benefits associated with strong tourism business.

Can I meet the senior management of Alila Hotels and Resorts?
Yes. We will be pleased to introduce you and for you to receive an explanation of their mission, vision and business methodology.