Strategies for Investing in Residential Property in Bali

Investing in residential property in Bali is an attractive option for many, thanks to the island’s growing tourism, booming real estate market, and favorable returns. There are a variety of investment strategies, ranging from short-term to long-term, each catering to different investor goals. Below, we’ll break down both classic and professional investment strategies that are commonly used in Bali’s property market.

Classic Investment Strategies in Bali

1. Short-Term Strategy (Up to 1 Year)

• Expected Return: From 20% per annum
• Approach: Purchase property in the primary market with 100% upfront payment (no installments). After the property is commissioned, sell it for a profit.
• Ideal For: Investors looking for a quick turnover with minimal holding period.

2. Medium-Term Strategy (Up to 2 Years)

• Expected Return: From 15% per annum
• Approach: Purchase property in the primary market with 100% upfront payment (no installments).
  • Lease the property, generating a 15% yield per annum.
  • After one year, sell the property as a ready-made rental business (GAB) for a return of 30% on the purchase price.
• Ideal For: Investors seeking both steady rental income and a profitable exit strategy in the medium term.

3. Long-Term Strategy (Up to 7 Years)

• Expected Return: From 15% per annum
• Approach: Buy property in the primary market, lease it out for 15% return per annum for up to 7 years.
  • After the lease period, sell the property at a higher price due to market growth.
• Ideal For: Investors interested in retaining capital while benefiting from property appreciation over time.

Professional Investment Strategies in Bali

1. Short-Term Professional Strategy (Up to 1 Year)

• Expected Return: From 30% on invested capital
• Approach:
  • Initial payment: 30% of the property’s value.
  • Installment payment: 3% per month for 6 months (18% of the property’s value).
  • Sale: Sell the property in 6 months with a 20% increase in value on invested capital.
  • Total Return on Investment (ROI): 48% of the property’s value.
• Ideal For: Investors looking for a high return with a shorter holding period, focusing on quick appreciation and leveraging installment payments.

2. Medium-Term Development Strategy (Up to 2 Years)

• Expected Return: From 35% on invested capital
• Approach:
  • Invest in the construction of a real estate complex, with the goal to sell the units before commissioning, within 1.5 years from the start of investment.
  • Minimum Project Entry: $1,500,000
• Ideal For: Larger-scale investors with higher capital, looking to invest in property development and earn significant returns before property completion.

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