How Much You Can Earn On Rental Property In Bali?

Many people buy property in Bali to earn money by renting out their properties, and this is not surprising - Bali now has the highest income in the world from renting real estate, and liberal legislation allows you to own property through the Leashhold form of ownership, just having a passport of almost any state. Bali is the most attractive tourist destination in Asia and the second in the world, according to TripAdvisor in 2023. Below are the yields from renting real estate in popular areas:

  • Bali 12-15%
  • Thai 7-8%
  • Dubai 6%
  • Turkey 3-5%
  • Cyprus 2-4%

Bali is a solid leader in terms of return on investment, and this situation has persisted for more than a year. This high return is due to several factors:

  • 320 sunny days provide more than 80% occupancy
  • the cost of rent grows by 15-17% per year
  • low construction cost
  • the popularity of the island allows you to set fairly high rental rates
  • the resort area is built up by 90%, which creates a shortage of supply
  • liberal emigration legislation aimed at increasing the flow of tourists

The price of land and real estate is steadily growing. There are no signs of a "bubble" either - all transactions are made for cash, that is, there is no risk of massive sales due to excessive credit burden, usually associated with a speculative price increase. In addition, you can get additional income by entering the project at the zero stage, or at the stage of active construction. When the object is completed, its value will increase by 25- 40%, depending on the type, location and other factors

There are two legal options for renting out your property (we do not recommend illegal ones). The first is to have a Pondok wisata (commercial license). The seller’s availability can be specified in the body of the deal, and then you can, for example, list your property on Airbnb, rent it out, pay 10% tax and make a profit. This option is suitable if you live on the island permanently and are ready to take on all the hassle of managing the rental process of the villa.

The second option is to contact the management companies (we will recommend you which ones). The management company will fully take over the entire process of managing the rental process, namely:

  • creating top-notch promotional content
  • market analysis
  • building a sales strategy
  • posting ads on more than 50 sites
  • communication with guests 24/7
  • centralized supply of all necessary staff
  • elimination of possible breakdowns in the unit within 3 hours
  • providing statistics on occupancy, income, etc.
  • payment of taxes

Usually, a property management service costs 15-20% of the profit, but it's worth it - due to professional management, occupancy is high, and costs are kept to a minimum, besides, you get rid of all the hassle and just get your income to an account in any bank in the world . Thus, in 99% of cases, transferring real estate management to professionals is more profitable than doing it on your own due to clearly built business processes and accumulated expertise.

Often, management companies can even guarantee you a profit of 10-12% per annum, but in this case, they will keep everything higher. This option is well suited for those clients who prefer stability and predictability for their investments.

 

 

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About Aster Apartment and Young Properties

A new apartment near the edge of beachfront Canggu, Bali. This apartment is presented by Young Properties Indonesia, and will offers 100 units studio fully furnished type. Young Properties has built the Ashley Park Apartment building in GA, USA, and now, we will build the Aster Apartment in Canggu, Bali Indonesia.

A multinational trading and manufacturing organization. Young Corporation currently conducts an impressive portfolio of diverse businesses in five continents. Existing in five continents enables us to monitor and better provide for our customers needs worldwide. This growth will continue to keep pace with the current expanding marketplace. Young Properties is an integral part of our organization as we continue to gain momentum in products industry. In keeping with our essential business philosophy that is based on the principle that our customers needs define our objectives.