Just imagine how you fly to your villa for several months a year, when it is winter and gray in your country.

Relax, travel, get inspired by the beauty of this island of the Gods.

And when you fly away, your villa will be managed by a professional management company. The villa will be serviced and rented to tourists, and you will receive several thousand dollars of net income every month!

We recommend our clients to use a full range of measures:

At a minimum, until the full verification of the property documents, keep the booking deposit in the escrow account of the notary of the transaction

Choose a contractor with already built properties in Bali and a good reputation

Register the property ownership rights with a notary, at least immediately for the land plot

Conduct full Due Diligence - verification of all transaction documents with an independent lawyer

Record fines and penalties for late construction in the construction contract

Use the correct contract structure: not an investment contract, but a separate contract for the transfer of lease rights to you for the land plot and a separate construction contract

Link the stages of payment by installments to the stages of construction. The developer built - you paid. And so on in stages.

With such a set of measures, you can minimize your risks when investing at the construction stage.

There is always an alternative - consider buying an already built property. This is an option with fewer risks for you, but also with less potential for growth in the value of the property.

Often, when purchasing any property, the developer provides a mandatory guarantee of lease extension at the end of the term.

This means that the landlord (owner of the land) gives a documented promise, a contract, that he will extend the lease for the next term. As a rule, this is another 15-25 years, depending on the landlord's terms.

The cost of the extension will be calculated at the time of payment at the market price excluding construction. This cost will be determined by independent experts based on the market value of neighboring land plots.

1 mistake: not having the land, all documents and contracts checked by an independent lawyer, but relying only on a local notary

2 mistake: choosing a location that does not suit your needs. For example, you want to earn money by renting out, but you buy real estate in an area that is not the most popular among tourists

3 mistake: forgetting that leasehold is the most profitable and simple format for owning real estate on the island of Bali.

Let's look at the best options on the market. Not the most expensive, but not the cheapest either.

Those that are pleasant to live in and that you can earn money on.

Please note that in Bali, the price always includes repairs, furniture and appliances. Everything is turnkey.

So, one-bedroom apartments with an area of ​​40 square meters, in a complex with a swimming pool, restaurant and gym will start at $ 100,000.

A one- or two-bedroom villa, with an area of ​​70 square meters, with its own pool and territory, in a popular tourist area, will cost from $ 180,000 and more.

Of course, in our portfolio, there are also huge premium villas worth from $ 400,000 to $ 2,000,000.

What exactly to choose? It depends one hundred percent on your goals. We will offer an investment strategy individually for you.

In Indonesia, there is a law that prohibits the sale of land to foreign citizens. And according to the law, everything that is on the land belongs to the owner of this land. Therefore, when constructing objects, a lease or sublease of land is issued for a period of up to 20-30 years in the first iteration, and then for another 15-20 years. This is called leasehold - the most common practice in Bali.

It is important that when executing a leasehold, it is advisable to include in the agreement the conditions on your first right to extend the lease term at market value.

When making a purchase, as a rule, the developer signs 3 contracts with you:

1) for the construction of the object;

2) for the lease of the land under it;

3) for the management of the object by the management company.

If you want to sell your property, you will only need to re-register the land lease agreement to the new owner.

Very rarely do locals sell land to someone as property (this is freehold). But even if this happens, it can only be registered to a company, plus the cost of the land will be significantly higher.

As a rule, all developers provide a choice - to use the services of their management company or you manage the property yourself. In practice, a third option is also possible, when you involve a third-party management company, and we will suggest you proven companies.

Why do Bali real estate investors choose leasehold? Let's find out!

We conducted a survey among our buyers and investors and prepared a summary for you.

So:

Investment real estate in Bali pays off completely in just 7-10 years, due to rent. Even if the leasehold was initially for twenty-five years, you still have at least fifteen years of ownership. In this case, you can sell the property at a discount of thirty to fifty percent, and the entire residual value will be net income.

The idea of ​​owning real estate for life, and then leaving it to your grandchildren, is becoming outdated. It is more profitable to treat investments in Bali as a profitable and competent investment of funds, with the aim of preserving or increasing capital.

Leasehold is easy and quick to issue if you are not a citizen of Indonesia. You can also invest remotely, by proxy, it is legal and reliable. In order to make money on real estate in Bali, you don't even have to fly here!

In conclusion, leasehold is a normal way of owning real estate and it will definitely not prevent you from earning money.

If you decide to build on your own in Bali, you will have to face the realities, namely:

The contractor for the construction will be Indonesian workers, with their own language and mentality, which few are prepared for.

Bali is an island with high humidity and an aggressive tropical climate. This imposes a number of strict restrictions on construction technology. Did you save on properly done waterproofing? Be prepared that in six months your villa will be covered with mold and mildew.

And finally, if you want a result close to the planned one, then you should be at the construction site several times a week. Leaving for a year and monitoring remotely - in independent construction - is a utopia.

As a result, if you are lucky, you will save 10-30% of the developer's price. But you will pay for this difference with your time and nerves. In fact, if you recalculate, no savings were made.

Do you agree that everyone should do their own thing? The developer is a professional builder, and the investor is an investor. And these are completely different roles.

That is why we recommend our clients only experienced developers who know all about local peculiarities.

Often, when purchasing any property, the developer provides a mandatory guarantee of lease extension at the end of the first term

This means that the landlord (owner of the land) makes documented promises - a contract that he will extend the lease for the next term.

As a rule, this is another 20-30 years, depending on the conditions.

The cost of the extension will be calculated at the time of payment at the market price excluding construction. This cost is determined by independent experts based on the market value of neighboring land plots.

The island's climate is equatorial monsoon, due to which there are only 2 seasons: dry (from May to November) and wet (from December to April).

The greatest amount of precipitation falls from January to February, but even during this period, life in Bali does not freeze in anticipation, since it rains here mainly at night, or heavily and quickly during the day. A prolonged downpour that lasts all day is a rare occurrence.

The average air temperature on the island fluctuates around twenty-eight degrees Celsius, and the water temperature in the ocean is twenty-five to twenty-eight degrees. All these factors make it possible to vacation in Bali at any time of the year.

That is why the tourist season in Bali is 320 days a year. Which has an extremely positive effect on the number of tourists and, as a result, the payback of real estate. Now it is one of the highest in the world!

This is still the most popular area for tourists in Bali. It has everything for surfing, many bars, restaurants, clubs, trendy gyms and coworking spaces. It has the most diverse food and stylish people.

This is where the young audience likes to live and is ready to pay for quick access to the best party places. Australians also prefer to come here, for whom the prices in Bali are a couple of times more affordable than in their homeland.

It is worth admitting that yes, there is the heaviest traffic here, eternal traffic jams, but this also speaks of the popularity and dense population of the area.

It is often difficult to find free housing in Canggu, especially monthly options. Almost always in this area there is full booking for stylish and beautiful options, and most of the properties are rented out daily - which is very profitable for the owners of such housing. In addition, there are very few free sites for construction left here, which increases the cost of land and finished properties.

Due to the combination of all these factors, Canggu real estate continues to show the best returns for its investors.

Sometimes you can hear "what guarantees, what quality?? This is Bali!" Let's figure it out!

According to local legislation, the standard warranty period for all types of work is 1 year. Taking into account the climate, this is really not much, just one wet season.

‼️ But, there is a way out! We recommend our clients responsible and high-quality developers who provide an extended warranty period.

For example, 5 years for the building structure, hidden defects in the structure and supporting structures, 7 years for waterproofing and anti-termite treatment.

Our advice - choose developers with an extended warranty period! Then you can be more calm about the quality of construction. And therefore, your investments are safer.

Several large developers in Bali have launched an 80/20 promotion.

Let's figure out what this means and how it works!

For clarity, let's take a 45 sq.m. apartment in a complex with a restaurant, gym, swimming pool and coworking. Their cost is $150,000 on average.

When purchasing under the 80/20 promotion, you can only pay 80% of the total cost of the property with your own funds! This is $120,000.

The remaining 20%, that is $30,000, the developer will take over 12-18 months from the income from renting out your apartments, after the complex is ready!

That is, you will pay the rest from the money you have earned!

At the same time, you can also pay the first 80% in installments until the end of construction, and in some cases even extend it for 1 year after completion. This significantly reduces your risks, while the return on investment increases.

‼️ An important feature is that in the case of this promotion, the developer does NOT increase the cost of the property, it remains market value! These are great and comfortable conditions that you should take advantage of!

By the way, the return on rent for those apartments that you see in the pictures will be at least 10% per annum in dollars!

How to choose a property in Bali at the beginning of construction to resell and make money on the price increase of up to 50% on the invested funds in a year?

Let's figure it out!

From the experience of a dozen similar transactions, we have identified clear signs that the property can be taken for the purpose of profitable resale:

The earliest start of sales and the lowest entry price.

A popular location among tourists within the areas of Canggu, Bukit or Ubud.

A strong and thoughtful project that stands out from the competition.

A developer who has a fixed plan to increase the price as construction progresses.

A limited number of lots of the selected type in the project, preferably no more than 20. And the developer's lack of plans to build the next stages in the same project.

An investment agreement, without registration of ownership with a notary until the moment of resale.

A popular type of housing that is already being sold on the market at the exit price you want.

A calculated financial model of the transaction, the profitability of which suits you.

A plan and understanding of how and with whom you will sell your property.

In Bali, you can really earn 20 - 50% on the invested funds on resale! But it is important to do it wisely.

We warn our investors that the main advantage in Bali is the income from renting out. It is now one of the highest in the world and can reach 15% per annum.

"So what about resale, everyone buys, paying only 20% and they are promised a quick resale!??" - you ask.

Let's figure it out!

Income from reselling real estate is possible and it can differ significantly from rental income, reaching a yield of 20 - 50 percent, but this entails more risks.

The main thing that you need to understand is that resale in 80 - 90% of cases will only happen at the stage of final or complete readiness of the property. Since you will most likely be transferring the construction not to the same investor as you, but to the end user, that is, a buyer who takes it for life or for renting it out.

For buyers of this type, it is important to reduce risks, so it is easier for them to buy something that they can see, touch, and be inside. Accordingly, by the time of resale, you will most likely have to pay at least 80 percent of the total cost of the unit. And this is a realistic-pessimistic scenario that you need to be prepared for. At the same time, it is possible to make more than 20 percent profitability on the invested funds if you comply with all the criteria from the previous point

Why do investors in income-generating real estate increasingly choose Bali over Dubai?

The rental yield in Bali is one and a half to two times higher than in Dubai.

Bali has a very well-developed management company service. They can directly guarantee a minimum yield of 10-12 percent per annum in dollars in the contract.

About tourists: Bali has a tourist and high season 360 days a year, while Dubai is very hot in the summer and has a minimal number of tourists. Of course, this affects the yield.

This is the entry threshold. In Bali, classy apartments cost an average of $150,000. At the same time, decent apartments in Dubai start at least from $250,000.

This is why more and more of our clients are now choosing to invest in Bali.

Let's use a recent example of our client to illustrate this. We selected, conducted a legal check and bought an old two-bedroom villa from an Indonesian owner for $100,000, with a 25-year leasehold. This villa is located in a super tourist area, in the center of Ubud, with high demand for quality housing.

Then we selected a construction company that will carry out a turnkey renovation, namely: a new project, new design, major repairs, finishing, equipping the villa, preparing it for delivery and receiving guests. The cost of their work will be about another hundred thousand dollars.

As a result, in just 5 months our investor will receive a villa with a market value of $250,000, with an investment of $200,000. His profitability upon sale will be 25% on the invested funds for 6 months or about 50% per annum.

But the investor decided to keep the villa for himself and rent it out daily, through the management company. In this case, his net monthly income from renting it out will be around $3,000 or 18% per annum.

Bali is located on one of Indonesia's nearly 18,000 islands. It is the fourth most populous country in the world, with a population of 275 million people, and one of the fastest growing economies in Southeast Asia. The country ranks 7th in GDP per capita and 3rd in growth rates. Indonesia is considered the world's third largest democracy with a truly rotating government that respects and protects property rights, creates favorable conditions for foreign investment, and maintains neutrality in foreign policy. The line of the country's new president, elected in March, is based precisely on maintaining and developing this course.

Rich cultural heritage. The locals practice a special type of Hinduism, making Bali famous as the island of ten thousand temples. There is authentic architecture, and colorful rituals and ceremonies that locals have continued to observe for many centuries.

The smiling and kind Balinese. The rapid development of tourism has not spoiled the locals, who remain extremely friendly towards tourists.

The diversity and beauty of nature. On one island, there are mountains, volcanoes, rice fields, cliffs and cliffs above the ocean, jungles with waterfalls, an ocean with places for relaxation and surfing, coral reefs and an abundant underwater world.

This whole mix contributes to the growth of tourist flow.

In 2024, Bali was visited by more than five million foreign tourists, which is 140% higher than the year before.

This year, the authorities expect seven million foreign tourists on the island, which will exceed the record of previous years.

Before the pandemic, Bali real estate mostly attracted classic experienced investors in resort real estate.

But over the past three years, the situation has changed dramatically!

Residents of megacities have actively entered the market, wanting to provide themselves with passive income in dollars and live in their own home in a tropical climate.

Why is that? The cost of real estate in Bali is significantly lower than in large cities, and remote work has made moving to the island a achievable dream.

Buyers from Asian megacities, the USA, Europe and the CIS countries are very active in the market.

Buyers are looking for clear investments with growth potential, unlike overheated real estate markets in developed Western countries, where a rental yield of 5% per annum is considered a success.

Let's figure it out.

On the one hand, the government is doing its utmost to preserve the authenticity of the island.

Therefore, the maximum construction height is limited to 15 meters. You will not find a building higher than 4 floors here.

This is also connected with traditional beliefs and has a positive effect on the appearance of the island, creating a tropical look with an abundance of greenery.

On the other hand, there are requirements for seismic resistance of buildings. For the authorities, safety is a priority over the profitability of developers. Which, you must agree, is a positive factor for investors

It's largely about the land. Let's explain.

Firstly, there aren't many areas that are really popular with tourists and have quality infrastructure. These are Bukit, Canggu and its surroundings, Ubud.

Secondly, the amount of land in these areas is limited, and there are fewer and fewer free plots of land close to tourist attractions.

Thirdly, this is the zoning of the land and its purpose. A significant part is occupied by green areas, these are lands allocated for agriculture. These are everyone's favorite rice fields. And only tourist and residential areas are suitable for residential construction. There are fewer of them every day.

Fourthly, this is a limitation on the height of the building of 15 meters. It is impossible to build high due to the threat of earthquakes, so the development is horizontal.

It is important to understand that the cost of land takes up a significant part of the cost of the property. Therefore, if the price of the land under your villa grows, the cost of the villa automatically grows.

This is why the cost of objects increases by 20% per year.

The most profitable investments in the Bali real estate market, in terms of rental prices and occupancy rates, are everything that can compete with expensive hotels.

And this means: the highest service, 24-hour service, spacious common area and its own infrastructure. A large common pool, fitness, spa, kids' club, restaurants, coworking, chill zones, playgrounds - everything that allows the guest to get maximum pleasure and comfort in one place.

Detached villas cannot always provide guests with such a level of service, which often cuts off solvent guests willing to pay a lot.

But there is an important nuance, villas in Bali, as a real estate format, remain highly sought after and desirable. Due to privacy and an abundance of space.

That is why our forecast is that the highest income will be provided by villa complexes with developed infrastructure inside and five-star hotel service.