GOOOD NEWS AND BAD NEWS

First, the good news. The recession in Europe and the U.S. seems to be bottoming out. The bad news is that it will take up to another year just to get back to where it was 2 years ago. In other words the hardship and misery will continue for another year. Some firms might not make it till then. Strange days indeed.

The really good news though is
THERE IS NO RECESSION IN LOMBOK!
Just take a look around. You would have to be related to Stevie Wonder not to have seen the amount of building work going on. Everywhere you look there are new villas, new shop developments new social housing projects, new bars and restaurants, new karaoke bars (well, you can’t have everything) not to mention the new international airport.

Did I mention the new airport? The runway is finished , the car park area is nearing completion, and the arrivals and departure lounge is progressing.

About 2 weeks ago, I was informed by a reliable source that hotel accommodation was in such short supply that people were actually sleeping on the beach. I didn’t believe it so I went to check for myself. The only person I could find was my friend George, but he always sleeps on the beach when his wife won’t let him in the house after a bender which is most of the time.
Anyway, in between world class pulls on his handrolled cigarette, he assured me there had indeed been a Swiss couple sleeping on the sand not far away the night before.
After some discreet enquiries, my sources in the hotel business told me that everywhere was full to bursting.
One hotel owner I spoke to said “last year, it was like this for 3 days. This year, it’s been like this for 3 weeks.
What will it be like next year!”
The only people who were complaining were the hotel owners who were having to turn customers away.
Enough said.

As a result of all this demand and lack of supply, land prices have rocketed. Two years ago, beach front real estate was being offered at half what it is today.
That’s a whapping 40% annual increase.
You can’t earn it that fast. (unless you’re selling crack cocaine to school kids through the school railings and that’s illegal isn’t it?)
So what to do. Well buy some real estate of course.
What have you got to lose!
The worst that could happen is that you’ll get your money back.

Iain Kent (real estate advisor)