BaliRay - Investment in real estate on Bali
- The annual increase in tourism in Bali has exceeded 20%;
- The annual increase in property prices in Bali is 10%;
- Investment return on rental property in Bali is in the TOP of returns, and has reached 12% per annum;
- Profitability when investing at the construction stage exceeds 15%.
- Profitability from development projects and land development reaches 20%.
- 200 000 $ - 350 000 $
- 200 000 $ - 350 000 $
- 5 000 000 $
- From $1,500,000 (from 20 ara)
25% per annum.
- $5,000,000 - $40,000,000
- Villa valuation on a plot of up to 500 m2 - $500 (Comparative method)
- Land valuation $30 per hundred square meters (are)
- Hotel valuation 0.5% of the hotel value (Income, expense, comparative method)
- Due diligence - villa on a plot of up to 500 m2 - $1,500
I. Investing in land development.
Income: +30% per annum.
- Selection of a land plot with an excellent view and liquidity and the prospect of growth in land value.
- Land development - land leveling, utility lines, road construction, geology and surveying, approvals.
- Investments from $1,500,000
- Selling to a developer or creating your own development project
II. Investing in a development project in Bali.
Income: +20% per annum or up to.
- Creation of a joint company.
- Investments from $5,000,000.
- Purchase of land for a joint company.
- Development, architectural project and financial planning.
- Receiving dividend income within 1.5 years. up to 35% per annum or up to 50% of the invested capital including taxes and additional fees.
III. Investment in a real estate object under construction at a starting price.
1. Rental income from 15% per annum.
2. Income from the sale of an object is an average of 30% of the invested capital.
- Investing in the construction of a real estate property at the initial stage of construction (a land plot has already been purchased, permitting documentation has been obtained, an architectural design has been created and construction has begun.
- Investments from 100 000 $ dollars. On average $300,000.
- Installments are provided until the facility is put into operation from 25% of the cost of the facility.
- Resale income from 20% to 40% of invested capital. Profitability depends on the stage of investment in the project. In the initial stage, real estate construction can cost 25 - 40% of the price of the finished property.
- Rental income is 15% per annum including taxes and additional costs.
Read more about investing in a property under construction in Bali
IV.Investing in a ready-made property.
1. Income for rent from 11% per annum.
2. Income from the sale of an object is on average 10% of the invested capital.
- Investing in a finished property.
- Investments from $200,000. On average $300,000.
- Profitability on resale after a year is possible due to a stable increase in the value of land and real estate in Bali from 10% of the invested capital.
- Income from rental will also be from 11% per annum, taking into account taxes and additional costs.
- Investing in a finished property is most often used to save money in the form of real estate and payback through rent for 5-7 years with the subsequent sale of the property.
First and foremost, the value of a property is determined by market value, which is the most likely selling price that a typical buyer would be willing to pay. An approach based on determining the value of real estate using the comparative method (comparison with similar objects of the value of objects), the income method (determining the yield from leasing similar real estate in a given location), the cost method (determining the cost of construction).
For details on how to evaluate real estate, see the article https://baliray.me/paybackcalculation
Return on investment when renting out – 7 years:
Let's say you are planning to invest in a property worth $180,000 in a popular area.
On average, the monthly rental price for housing with a similar area, location, renovation
will be $4,000 per month. You can see a detailed calculation in the article "Calculating return on investment"
80% occupancy will result in revenue of $3,200 per month.
The costs of the management company, on average, are 25% of revenue = $800.
Remaining revenue = $2,400.
Tax – 11% = $264.
That is, the planned profit will be $2,136 per month, or $25,632 per year.
Total return on investment:
$180,000 divided by your annual income $25,632 = 7. The investment will pay off in 7 years. You can see a detailed calculation in the article "Calculating return on investment"
investment
Nusa Dua
BALIRAY REAL ESTATE SERVICES
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