Resisting Temptation

Or, timing is everything

I have a tendency to get excited about an idea and plow ahead in order to make it happen. But we live in very different times (to say the least). It’s not that the “plow” is broken; perhaps its more like in suspended animation.

Photo: Early morning light shining through on Bali’s shore.

Here’s another metaphor for you (besides the plow):

Our family had a cat named Princess, who at some point developed a fear of the front lawn. She would never quite walk across it. Instead she would creep up to its edge, wide-eyed and serious, then dart across.

My dad guessed she had once been in the wrong place when the sprinkler came on. Like most cats, Princess found it excruciating to be touched by any amount of water, unless it was her idea. A single raindrop would send her fleeing for cover, yet she would also wait at the bathroom door for you to emerge from your shower, then push past you to investigate the leftover puddles.

A cat’s non-negotiable stance towards involuntarily touching water illuminates what might be the most important difference between humans and other animals: we can overcome our own reactivity. We can learn what our impulses are, reflect on whether they’re helpful, and practice not always acting on them. — More here

While my impulse tends to say, “Build it and they will come,” I have to keep my reactivity in check. And frankly, I would like for this community building project to become a “we” effort instead of an “I” effort.

With that in mind, I would like to know what your long-term plans are. Not sure? Here’s an example of what you can do to align yourself with your goals:

When you’ve got a goal or value, picture it. The more detail the better. Draw it, describe it, get a clear image of it. Then get some of those little sticky dots you can find in stationery stores. Put one on the picture, or on your computer, phone, TV, mirror. Make sure you keep in mind why you’re doing what you’re doing. Then, when you get out your credit card to buy something, or look at your phone to pay online, you’ll see the dot, think about why you’re saving and how great that goal or value is, and won’t spend the money. You’ll use your dreams and motivations to change your behaviour… — More here.

The Next 2-3 Years

Over the next 2 or 3 years, are you considering any of these goals?

• retirement

• financial independence

• second home

• expat life

Please leave a comment, even if it’s just “I don’t know.” I will read ALL comments.

Photo: Mere Pinterest porn? Or your future reality? We can build 6 or 8 or a dozen residences in a larger version of this structure. And in Bali we can make it affordable.

The current plan is to offer one or two-bedroom residences, with a maximum of 10-12 units. Besides your own kitchen, there would be:

• a community dining space with a resident chef

• a large, shared swimming pool

• a spa (with massages for less than $10 USD an hour)

• a garden

And:

• (why not?) a rooftop hangout space

Or, it can be some other configuration of space and amenities.

Our initial plan is to offer 25 year leases for the residences. The target prices are:

• $95,000 USD for a one-bedroom unit (or $317 a month)

• $120,000 for a two-bedroom unit (or $400 a month)

• Monthly maintenance fee is targeted at $75 per month

Assuming I secure the land, I would need to sell X number of leases in order to begin construction. Typically there is:

• an initial deposit of 10% (locks in your residence. Refundable if construction does not begin within X period of time)

• when construction begins another 40% is required

• when construction is at 50%, another 40% is required

• and finally when construction is complete the final 10% is required

Is this a workable plan?

Investment or home?

You may have noticed the leases translate to owning a residence for the equivalent of approximately $400 USD a month. You might be thinking that you could charge $800-$1000 a month while you're not in Bali.

This is certainly possible, but because the goal is to create a sense of community, daily or weekly guests would change the ambiance of the place.

To compromise we can allow lease owners to sublet their units for a minimum of one month time periods. Thoughts?

5 or 10 year leases? Other options

If paying $95k or $120k within an 18 month time period is out of the question, it might be possible to offer leases for shorter time periods.

The problem with very short leases is that even if you charge a premium for a 5 year lease, the upfront capital is limited. Which translates to not having enough money for construction. Unlike Western countries, there are no construction loans for foreigners.

A viable option might be to sell 10 year leases, as long as we can sell 4 or 5 leases within a reasonable period of time. How does this sound?

• $47,500 for a one-bedroom unit

• $60,000 for a two-bedroom unit

The same payment schedule would apply.

I could offer either 25 or 10 year leases. And 15 or 20 year leases as well. Other options?

Please share your thoughts.

As a side-note, if the pandemic is driving you crazy and you are ready-to-go (meaning we get a covid19 vaccine and you can travel worldwide within 6-8 months), these apartments might be an option.

Later,

Neill