Several main factors influence the profitability of real estate investments in Bali:
1. Location, its popularity and the contingent of tenants in this location.
2. Type and quality of real estate.
3. The cost of renting out in nearby properties.
In Bali, location, contingent and solvency are interrelated factors. For example, in the Canggu area, popular by the ocean, with a developed infrastructure, young tourists mainly come to relax in clubs and on the coast for a short time, and here the cost of real estate and rent is the highest.
At the same time, Ulawatu has a high concentration of surfers who prefer to stay there for longer periods. And already in Ubud, many stay for years. Apartments, hotel complexes and villas give approximately the same yield. But the quality of the object, repairs provide a noticeable increase in income.
The appraisal of the value of a property or rental price is primarily carried out by the comparative method. In addition, real estate for rent increases in price for two reasons:
1. Natural growth in the value of real estate and land in Bali - 12% per year.
2. Increasing the value of the object as a business by providing reporting on rental income, which demonstrates the actual value of the object.
The main strategies for investing in overseas residential real estate:
1. Lease with a yield of 15% per annum.
2. Purchase and sale of real estate with an income of 20% per annum.
3. Investments in a development project with an income of 35% per annum.
4. Investments using installment payment with a yield up to 100% per annum.
5. Renovation or sale after repair with an income of 25% per annum.
