© 2023 ANTA Group
Bali, one of Indonesia's most picturesque and popular islands, has long attracted the attention of investors from around the world. Incredible nature, rich culture and growing tourism make this island an ideal place to invest in real estate. However, as with any investment sector, success requires a clear strategy and local market knowledge.
In this article, we will look at the best Bali real estate investment strategies based on the experiences of successful investors.
Perspectives on investing in Bali
Bali, with its picturesque beaches and rich culture, is constantly attracting the attention of real estate investors. The tourist flow on the island does not dry up and amounts to half a million people every month, providing high occupancy rate of 70-80%.
Investing in this region is considered promising, especially given the annual growth in the cost of rental real estate by 15%. The average annual return on investment in real estate in Bali is between 12 and 20%, allowing investors to recoup their investment within 5 years.
The Indonesian government is actively working to improve conditions for foreign investors, which contributes to the further development of the investment environment on the island.
Strategies for investing in real estate in Bali
1. Short-term (up to 1 year) - with yields from 20% per annum
One of the popular short-term real estate investment strategies in Bali is to buy properties during the construction phase and sell them after completion. This strategy can provide returns in the range of 20% per annum.
This is suitable for investors interested in rental income as well as those planning personal use of the property.
Purchasing properties in the primary market and then selling them can generate returns of 20% or more per annum, and the value of such properties is often determined by their rental potential.
2. Medium-term (up to 2 years) - with a yield of 15% per annum.
The second strategy of investing in real estate in Bali is focused on medium-term prospects (up to two years) and assumes a return of 15% per annum. The essence of this strategy is to buy an object on the primary market with full payment, without installments, and rent it out, creating a ready rental business.
After a year of successful lease, the object can be sold with a return of 30% on invested capital. This strategy allows investors to generate rental income during the first year of operation and then sell the property as a ready-made rental business with a high yield.
3. Long-term (up to 7 years) - with an annualized return of 15%
The third Bali real estate investment strategy focuses on the long term. Under this strategy, an object is purchased in the primary market, which is then rented out with an annual return of 15% for 7 years. After that, the property can be sold for an additional profit due to the increase in its market value.
Renting out is the most common way to generate income from real estate in Bali, providing a stable dividend and increase the capitalization of the property. Daily rentals can generate higher income but require constant care and maintenance, while long-term rentals provide a stable, albeit lower income with lower maintenance costs.
4- Investments with installment payments
It is also possible to invest in Bali real estate using installment payments, providing returns of up to 40% per annum.
With this strategy, the down payment is 30% of the property's value. The remaining amount is paid over the next six months at an interest rate of 3% per month.
After six months, the property is sold with a 20% increase in value, which takes into account the capital invested. This strategy takes into account the return on invested capital and with this approach the return on invested capital reaches 42%.
5. Redemption of individual shares
Bali offers the opportunity to invest not only in entire properties, but also to start by buying individual shares.
For example, you can buy a share for $10 thousand and gradually increase it to the full value of the apartment or another object.
Equity investment in real estate is one of the most profitable forms of investment, as it is available to a wide range of people. By purchasing a share, you get the right to manage this part and receive income from rent or growth in value.
This model is especially attractive for young investors with limited financial resources, as it allows you to start with small amounts and gradually increase the capital.
We, ANTA Group, offer unique opportunities for equity investment in premium apartments in Bali's most popular neighborhood, Changgu, at ANTA Residence Canggu.
The benefits of investing with us include:
- Affordability: Investing in a share allows you to start with smaller amounts, which is ideal for first-time investors.
- Portfolio diversification: You can buy stakes in several properties, which reduces risk and ensures stable income.
- Professional management: We work with leading property management companies who take care of the rental, maintenance and management of the properties.
Return on Investment in Bali
Each of the investment strategies includes a capitalization consideration covering both the value of the land and the value per square meter of the property.
When calculating the return on investment, the average annual growth in the value of the land plot is taken into account, which is 5-7%, as well as the growth in the value of the property under construction, which increases by an average of 20% during the construction period (about 2 years).
A popular way of receiving passive income among investors is real estate rent. On average, the rental yield in Bali is 15% per annum, taking into account all operating costs.
Additionally, the value of the rental property increases for two main reasons: the natural increase in the value of real estate and land in Bali (approximately 12% per year) and the increase in the value of the property as a business due to the reporting of rental revenue showing the actual profitability of the property.
In this article, we will look at the best Bali real estate investment strategies based on the experiences of successful investors.
Perspectives on investing in Bali
Bali, with its picturesque beaches and rich culture, is constantly attracting the attention of real estate investors. The tourist flow on the island does not dry up and amounts to half a million people every month, providing high occupancy rate of 70-80%.
Investing in this region is considered promising, especially given the annual growth in the cost of rental real estate by 15%. The average annual return on investment in real estate in Bali is between 12 and 20%, allowing investors to recoup their investment within 5 years.
The Indonesian government is actively working to improve conditions for foreign investors, which contributes to the further development of the investment environment on the island.
Strategies for investing in real estate in Bali
1. Short-term (up to 1 year) - with yields from 20% per annum
One of the popular short-term real estate investment strategies in Bali is to buy properties during the construction phase and sell them after completion. This strategy can provide returns in the range of 20% per annum.
This is suitable for investors interested in rental income as well as those planning personal use of the property.
Purchasing properties in the primary market and then selling them can generate returns of 20% or more per annum, and the value of such properties is often determined by their rental potential.
2. Medium-term (up to 2 years) - with a yield of 15% per annum.
The second strategy of investing in real estate in Bali is focused on medium-term prospects (up to two years) and assumes a return of 15% per annum. The essence of this strategy is to buy an object on the primary market with full payment, without installments, and rent it out, creating a ready rental business.
After a year of successful lease, the object can be sold with a return of 30% on invested capital. This strategy allows investors to generate rental income during the first year of operation and then sell the property as a ready-made rental business with a high yield.
3. Long-term (up to 7 years) - with an annualized return of 15%
The third Bali real estate investment strategy focuses on the long term. Under this strategy, an object is purchased in the primary market, which is then rented out with an annual return of 15% for 7 years. After that, the property can be sold for an additional profit due to the increase in its market value.
Renting out is the most common way to generate income from real estate in Bali, providing a stable dividend and increase the capitalization of the property. Daily rentals can generate higher income but require constant care and maintenance, while long-term rentals provide a stable, albeit lower income with lower maintenance costs.
4- Investments with installment payments
It is also possible to invest in Bali real estate using installment payments, providing returns of up to 40% per annum.
With this strategy, the down payment is 30% of the property's value. The remaining amount is paid over the next six months at an interest rate of 3% per month.
After six months, the property is sold with a 20% increase in value, which takes into account the capital invested. This strategy takes into account the return on invested capital and with this approach the return on invested capital reaches 42%.
5. Redemption of individual shares
Bali offers the opportunity to invest not only in entire properties, but also to start by buying individual shares.
For example, you can buy a share for $10 thousand and gradually increase it to the full value of the apartment or another object.
Equity investment in real estate is one of the most profitable forms of investment, as it is available to a wide range of people. By purchasing a share, you get the right to manage this part and receive income from rent or growth in value.
This model is especially attractive for young investors with limited financial resources, as it allows you to start with small amounts and gradually increase the capital.
We, ANTA Group, offer unique opportunities for equity investment in premium apartments in Bali's most popular neighborhood, Changgu, at ANTA Residence Canggu.
The benefits of investing with us include:
- Affordability: Investing in a share allows you to start with smaller amounts, which is ideal for first-time investors.
- Portfolio diversification: You can buy stakes in several properties, which reduces risk and ensures stable income.
- Professional management: We work with leading property management companies who take care of the rental, maintenance and management of the properties.
Return on Investment in Bali
Each of the investment strategies includes a capitalization consideration covering both the value of the land and the value per square meter of the property.
When calculating the return on investment, the average annual growth in the value of the land plot is taken into account, which is 5-7%, as well as the growth in the value of the property under construction, which increases by an average of 20% during the construction period (about 2 years).
A popular way of receiving passive income among investors is real estate rent. On average, the rental yield in Bali is 15% per annum, taking into account all operating costs.
Additionally, the value of the rental property increases for two main reasons: the natural increase in the value of real estate and land in Bali (approximately 12% per year) and the increase in the value of the property as a business due to the reporting of rental revenue showing the actual profitability of the property.
Bali real estate market: best investment strategies from experienced investors
Antalya, Konyaaltı, Altınkum mah., Atatürk bulvarı No: 116, Blok: C, D: c2 (Özyeşilyurt sitesi)
Office
messengers
Collaboration
Sales
phone
© ANTA Group 2023
Social media