In Bali, the affordable cost of land and real estate construction, there are no bureaucratic difficulties that increase the cost of finished real estate. At the same time, Bali has a year-round high demand for villas and apartments.

When buying a villa or apartment before the start of construction, immediately after receiving the object, the investor can sell the property with a margin of 30%.

In the case of rental of purchased real estate, premium villas and apartments pay off within 5-7 years, and economy class real estate within 7-10 years.

Bali has an ever-growing domestic and foreign tourism. Bali is visited by 10 million people a year, with an increase in travelers by 15% per year, some of whom stay in Bali for several years or more.
At the same time, the pace of real estate construction is significantly behind the required volume.

1. The profit from renting out real estate is an average of 15% per annum, i.e. the average payback is 7.5 years.
2. Profit from the sale of purchased real estate. On average, the margin is 30%. I.e. payback + profit up to a year.

Profitability depends on the area of Bali, the quality of real estate, marketing and quality of service.

1. When investing in real estate before the start of construction and selling immediately after construction, the expected profit will be 30% during the year.
2. When renting out - the expected profit is from 11% to 15% per year and pays off from 7 to 10 years.
In some cases (for example, when investing in the construction of a hotel), the profit can be 20% per annum and the investment will pay off in 5 years.

In Indonesia, and in particular on the island of Bali, you will need to pay 11% of the income generated by the sale of real estate.

Mandatory payments:
Electricity, water, Internet - the average price for a two-room villa is $ 100 - $ 150

Additional payments:
Maintenance staff including pool maintenance - $ 200 per month.

If you want to rent out real estate remotely, then the average cost of maintenance by the management company will be 20% - 30% of the proceeds from the object.

You can rent real estate yourself through the Airbnb or Booking applications or using the services of a management company. It is better to delegate the delivery of the object to the management company.

To check whether real estate investments really bring 15% per annum, we recommend that you just check the rental prices in the booking application.

You can do it yourself using the following algorithm :

Let's say you plan to invest $200,000 for a villa on a plot of 200 meters.

1.Identify similar objects.
In the booking application, specify the region where you are invited to invest in an object, for example Changu (4-5 stars), specify the rental period of a month and you will see objects with prices.
Look at objects with a similar area and finish quality (4 - 5 stars).
3.You will see approximately the following options:
$1,176
3 955 $
2 515 $
8 381 $
5 548 $
8 458 $
3 233 $
7 905 $
3 593 $
5 290 $
6 200 $
On average, the rental price per month for objects with a similar area and location, but obviously the worst finish, will be $ 5,005 per month. Let's round it up to $5,000 per month. Thus, you have determined the amount of revenue that you can confidently receive per month.

2. Take into account the workload of the room fund.
The result is $ 5,000 multiplied by 80% (occupancy of the room fund) = $ 4,000 per month.

3. Consider the costs.
You will delegate all costs to the management company for 20% of the revenue - $ 800 per month. Before taxes are paid, the income will be $ 3,200

4. Take into account the tax for renting out real estate.
The tax will be 11% - $ 352.
That is, the planned profit will be $ 2,848

5. Calculate the return on investment.
Now divide the investment amount of $200,000 by your monthly income of $2,848 and for 12 months of the year. You will see the payback period of the object. In this example, the payback period is up to 7 years.
200 000/ 3 200 / 12 = 5.8 years.

To organize events for renting out real estate, you can use the services of a management company. It will cost 20-30% of the rental price.

If you invest in the construction of a villa or apartment of up to 200 m2 in a good location before the purchase of land and the start of construction, then in most cases you can sell it with a margin of 30% to 50% during the year - independently or through a real estate agency.

Firstly, the demand for villas is due to their profitability.
If when calculating the sale price you see that at this price the payback period of the Villa will be up to 7 years, it means that it will be bought.
Secondly, you can find in Indonesian aggregators the cost of similar objects, taking into account the location, area, quality of finishing and you will see that the prices will be 30 - 40% higher.

In the case of self-maintenance of a two-bedroom facility, the costs will average from $ 300 - $ 350 per month, including water supply, electricity and good Internet.



Maintenance of all objects sold by Blu Ray is carried out by the management company. On average, the services of the management company account for 20% of the revenue of the facility and include - attracting customers, staff providing cleaning of territories and premises, a gardener and a pool specialist, technical work and in some cases full property insurance.

In Indonesia, and in particular on the island of Bali, you will need to pay 11% of the value of the object for sale that arose during the sale of real estate.

There is a tax – 11% – on income from renting out a villa or apartment.

All transactions for the purchase and sale of real estate are conducted by notaries. The notary's work is 1% of the transaction value.

Rent.
1.Hak Sewa “leasehold”
2. Right to use - Hak Pakai ”right to use”

Property.
3. Unconditional right to property - Hak Milik “freehold”




Rent.

1. Long-term lease - Hak Sewa “leasehold” with registration with a notary. It is used when purchasing ready-made real estate.

An ordinary lease agreement is concluded between the owner and the investor.
It can be notarized, but it is not registered with the relevant authorities, which is different from Hak pakai.

Tenant:
An individual or a legal entity.

Term of ownership:
The term of Hak Sewa is not regulated by law, accordingly, no one prevents the parties from concluding it for 100 years by prescribing the procedure for the transfer of rights and obligations by inheritance.

Ownership right:
In this case, a regular lease agreement is concluded between the owner and the investor.
It can be notarized, but it is not registered with the relevant authorities, which is different from Hak pakai.
The lease agreement does not have to be confirmed by a notary – it is enough that it is signed by two witnesses and it has been certified with stamps.
It is important that the lease agreement contains, among other conditions, a clause regulating the need for the landlord to independently pay tax on the income received.

Taxes:
Under Hak Sewa contracts, income tax liabilities arise only from the landlord (10%), but property taxes, annual land taxes are paid by the tenant.

Recommendation:
The Hak Sewa contract is used when acquiring a plot of land with a built real estate object. After obtaining a lease for the construction of a new facility, another lease agreement is required - Hak Pakai ”right to use" allowing you to obtain a permit for the construction of a new facility.

2. The right to use - Hak Pakai ”right to use” with registration with a notary, in state bodies with the issuance of a personal certificate. Used in the construction of new real estate.

The exclusive right for a foreigner to use land, and this exclusive right is legally secured, about which a corresponding certificate is issued, which is necessarily registered with state authorities.

Tenant:
An individual or a legal entity.

Term of ownership
Up to 80 years (initial term of 30 years + extension for 20 years + extension for 30 years).

The right to own:
When a foreigner acquires real estate, he is issued a certificate indicating his name in the column "owner of the exclusive right to use" or Hak Pakai.
At the same time, at the time of issuing such a certificate, the previous owner is completely deprived of the rights to use it and any operations with it, which means full protection of the foreign buyer from legal risks.
To purchase under the Hak Pakai contract, it is necessary to have a company in Indonesia and a KITAS visa, which is issued for owners or employees of law firms registered in Indonesia.

Taxes:
For a tax resident of Indonesia, the tax on the sale of real estate to another person will be 11% of the total cost.

Recommendation:
The Hak Pakai contract makes it possible to obtain a permit for the construction of a new facility, therefore it is recommended for those who need to build a new facility on their site.



Property.

3. Unconditional right to property - Hak Milik “freehold".
Rarely used.
According to the legislation of Indonesia, the right of ownership of land in this country can be held by individuals - citizens of Indonesia or legal entities - companies whose owner can be a citizen of any country.

Owner:
Legal entity.

Term of ownership:
According to this type of contract, the right of ownership is unlimited in time.

The right to own:
According to this type of contract, the company and the founder/founders have the full right to own land and objects on it.

Taxes:
Taxes on purchase and sale are 11% of the cadastral value. At the same time, most often, the tax is divided 50/50% between the seller and the buyer.

Recommendation:
This option of land ownership is several times higher than under a long-term lease agreement and is most often used in the construction of hotel complexes or villa complexes on plots from a hectare. In some cases, this type of land ownership may be with plots of 200 m2 of land, but this is very rare.

Hak Guna Bangunan (HGB) - "right to build”

It is necessary for the construction of the object.
Translated as "Right to Build", or the right to build. This option is provided for companies (legal entities) registered in Indonesia, and it does not matter whether an Indonesian citizen owns the company or whether foreign capital is present. This provision allows you to build and own several real estate objects or entire villages or apartment buildings. Accordingly, the developer company can sell plots of its land or real estate to investors, ceding them the rights to this territory.

Term of ownership:
This right is granted to the company for a period of 25 with further prolongation for 25 and 30 years (a total period of 80 years), after 80 years prolongation is also possible, but in practice no one has passed this period yet. Amendments to the legislation are currently being prepared. It is expected that the lease term for Hak Guna Bangnan will be made initially with a period of 70-80 years. As soon as the changes are accepted, we will reflect them in this article.

The right to own:
Having this right, the company can transfer land plots or real estate objects to other persons (under Hak Pakai agreements to foreigners, under the HakMilik agreement to Indonesian citizens, under contracts for the sale of shares in the company), ceding its rights to this property to the purchasers.
The advantage of this option is that the possible further resale of land and buildings on it can occur by selling the company or its shares, which can be done without tax expenses associated with the replacement of owners.

Taxes:
In addition to the sales tax, there may be a profit tax: the standard rate is 25%, if 40% of the shares are traded on the stock exchange, the rate is 20%, if the company's turnover is less than Rp 50 billion ($3.5 million), the rate is 12.5%, small companies with a turnover of less than Rp 4.8 billion ($320,000), the rate is 1%.

The purchase of real estate for an individual is certified by a notary and amounts to 1% of the value of the object.

The purchase of real estate for a legal entity is registered with a notary, which is 1% of the value of the object and with the state local government bodies of the district.

Tourist visa
COVID vaccine

Management company - fully services your property, which includes:
Ensuring the occupancy rate as a result of marketing activities - on average from 80%
Change of linen
Cleaning of premises
Maintenance of the building, swimming pool and equipment.
Payment for electricity, water supply and Internet.
Transfer of the investor's income to the investor's account.

Thus, thanks to the management company, the owner of the property does not need to maintain his object independently
The management company's services range from 20% to 30%.
Usually 30% in hotel complexes where property insurance is included.

The homeowner can independently manage his property, then he will need to pay for utilities (water, electricity), Internet, pool maintenance, which on average costs $ 300 - $ 350 per month for a two-room villa.

The most common routes are:
Moscow - Istanbul - Jakarta - Bali
Moscow - Dubai - Jakarta - Bali 

On average, the journey takes a day and a half and a ticket for one person costs 100,000 rubles.

Bali is an island in the Indian Ocean from the group of the Lesser Sunda Islands, located in Indonesia. The area of Bali Island is 5416.4 km2.
The population is 5 million people out of 275 million

Historically, due to its proximity to Australia, 20% of tourists are Australian citizens. China - 19.25%, India - 5.83%, Britain - 4.59%, USA - 4.38%, Japan - 4.14%, France - 3.47%, South Korea - 3.35%, Germany - 3.25% and Malaysia - 2.82% and other countries.

At the same time, during the COVID restrictions, there was a significant increase in tourists from Singapore and Russia.

The average air temperature is 26 degrees with an average maximum of 30 degrees and an average minimum of 23 degrees of heat. The average water temperature is 29 degrees Celsius. Bali has two seasons instead of the usual four.
Dry (June—October) and wet (November—March). Wet differs in that there may be an hour of warm rain during the day.
The heat temperature in the center of Bali is on average 5 degrees lower than in the coastal areas of Bali such as Changu.

Snakes can be seen in the jungles of Bali, but they are extremely rare in the populated areas of Bali. Also on the Internet you can read about Dengue fever, which, according to statistics, you can get sick with a probability of 0.016%.

The religion is Hinduism. Beautiful ceremonies are often held in Bali, which can be watched as a theatrical action.

In Bali, you can count more than 20 areas beloved by tourists. Each district has its own uniqueness:

Nusa Dua
From Indonesian – "two islands". The area is a resort area and is located on the south side of the island. A neat and clean area where you will find some of the most paradisiacal beaches on the island with white sand and aquamarine water.
Here are the best Bali hotels of four and five stars, many European restaurants and cafes for every taste and pleasant atmospheric shops where you will find everything you need for a comfortable beach holiday.
Time from the airport: 30 minutes;
Beaches: Nusa Dua Beach, Mengiat Beach, Geger Beach, Pandawa Beach;
Disadvantages: lack of nightlife, expensive accommodation, dependence on tides and tides on the coast.
If you are looking for a quiet and pleasant place for a holiday alone with yourself or with your family – Nusa Dua is perfect for you.



Tanjung Benoa
One of the youngest resorts on the island, this is a great replacement for Nusa Dua, if you want to save a little without fear for the quality of services. Tanjung Benoa Beach is wide and clean, the water is clear and calm. It is more suitable for swimming than the beaches of Sanur, but the ocean here is shallower than in Nusa Dua, especially during low tide. The resort is developing rapidly and will appeal to those who do not like noise and dancing until the morning, since there are almost no night establishments here.
Tanjung Benoa is located in the south of Bali. The distance to the airport is less than 15 km.

Jimbaran
The area of unique sunsets and fish restaurants is located just below the Ngurah Rai International Airport and the journey from it takes 10-20 minutes. It is one of the 6 districts located on the Bukit Peninsula.
Jalan Uluwatu – the central street of Jimbaran is overloaded and unsuitable for hiking, although sidewalks are available almost throughout. You can't do without a bike here, so you need to consider the option of renting or ordering a taxi every time.
There is no nightlife for parties, you need to go to other areas for it. Beach clubs host parties, but high prices are waiting for you there.
There are many chain stores and grocery markets, and along the roadway there are vegetable and fruit shops. Fresh fish can always be bought at the Pasar Ikan Kedonganan Seafood Market, which is open until sunset.
Jimbaran has a large number of catering establishments for every taste and budget, from simple varungs to chic restaurants and stylish bars. Fish restaurants are very popular among tourists, they are located right on the beach, so you can watch incredibly beautiful sunsets in a romantic setting.
The beach is sandy, two kilometers long. The water in this place is often muddy, but you can swim during the tides.
Hotels here are quite expensive. The atmosphere is calm, despite the proximity of the airport. Bathing is safe, so it's good to relax with children here. And if you have a ticket to the water sports center, then the children will be absolutely happy.

Bukit
The Bukit Peninsula has a surfer atmosphere, which is due to the highest concentration of beaches in Bali and surf spots. There is the necessary infrastructure for comfortable living and leisure: surf spots, golf courses, fitness, shopping center, fantastic beaches, clubs.

Kuta
Kuta offers a good set of entertainment in the dark. This is a very popular, noisy and cheap resort, the best place for tourists with a limited budget and unlimited energy. The area does not sleep day or night, so supporters of contemplative recreation are unlikely to like it. But Kuta Beach is not the best choice for swimming, but a great place to learn surfing and night entertainment.

The main characteristics of Kuta:
Location: west coast in the southern part of the island.
Distance to the airport: about 4 km.
Places to visit: Waterbom Bali water parks, Circus Waterpark Kuta, 4 cinemas, Vihara Dharmayana Kuta Buddhist Temple, shopping malls.Seminyak is located slightly above Kuta, the border between these areas is so blurred that it is not clear where Kuta ends and Seminyak begins.
The traffic flow is very dense, only at night you can move freely.
Seminyak is a luxury villa, an incredible number of pretentious and chic restaurants, expensive SPA salons and nightclubs. An area with huge supermarkets, ATMs located everywhere and lively life at night.
There are few hotels, mainly villas with fairly high prices.

Seminyak
Seminyak is suitable for those who prefer luxury and comfort, love expensive restaurants and spend time in clubs, surfing or just going to study.

Ubud
Ubud is considered the cultural capital of the island — the whole of Ubud is literally crammed with creative workshops, art galleries and shops where you can buy wood, glass and metal products made by local craftsmen. Ubud is also the capital of yoga and meditation practices.
Ubud is located in a place with a comfortable climate — at an altitude of 200 meters above sea level, far from the ocean, so it is not as hot as on the coast, but also not as cold as higher up in the mountains. Ubud and the surrounding areas are literally surrounded by greenery — everywhere there are huge trees, many palm trees, as well as countless picturesque rice fields and terraces.
Not far from Ubud there are all kinds of places of entertainment for tourists — museums, temples, a bird park, a botanical garden, there are also offices organizing active recreation — bike tours, rafting, canyoning, etc., and also not far from here to volcanoes, lakes and waterfalls in the center of the island.
On the territory of Ubud is the famous Monkey Forest (Monkey forest) — a forest with tall trees, their foliage covering the sky, in which monkeys live. Monkeys are everywhere here — some are crawling through trees, others are begging, trying to lure food from tourists, others are splashing in the fountain or lying on the paths, scratching their tummies or playing with babies.
There is no nightlife in Ubud, local rules of order prohibit noise after 10.30 pm.

Changu ( Umalas is located in the same area )
Changu is a district in Bali, Changu is located by the ocean and 5 kilometers from Seminyak. In addition to the indigenous people, this area is inhabited by expats who have been living here for quite a long time. The infrastructure is also very developed here. In addition to hotel rooms of different price categories, beautiful villas and small houses where tourists live, there are many other buildings in this area: cafes, restaurants, spas, sports clubs, surf camps, etc. It is interesting to see with your own eyes the rice fields on the slopes of the mountains. As for relaxing by the sea, there is a unique sparsely populated beach of gray volcanic sand in this area. Also here you can find several surf spots of various levels that train both new surfers and more experienced ones, helping them hone their skills. One of the most visited places in Changu is a small restaurant, which is located right on Eco Beach. During lunch, you can watch surfers, and in the late afternoon you can meet a bright red sunset, while enjoying a wide variety of seafood dishes.

Amed
This is a small picturesque village. Expect a lot from the rooms and service is not worth it, but the prices are quite consistent with the quality. There is no need to talk about clubs and parties, they go to bed early here. But you can get acquainted with the life of ordinary Balinese, see little-known ancient temples and a gorgeous sunrise.
The Amed resort is a great place for diving and snorkeling, and even those who have never worn masks with a snorkel before can explore the underwater world. Since waves are rare, and the water is clear, it is very pleasant to swim. The beach has black sand mixed with pebbles.
Amed is located on the east coast of Bali. The distance to the airport is about 100 km.

Chandidas
The eastern part of the island. There are several hotels and many villas in Chandidas, and a narrow strip of volcanic sand beach is not bad for swimming, although during high tide the beach completely disappears under water. Also from here it is not far from the famous beach with snow—white sand and the corresponding name - White Sand Beach.
In the center of Chandidasa there is a lagoon of lotuses, here is the main temple of the village, the construction of which dates back to the 11th century. 10 kilometers west of Chandidasa you will find an interesting Goa Lava Temple — the temple of bats. In the temple there is a cave in which hundreds of bats live, which are worshipped by the locals.

Lovina
Lovina is well suited for a beach holiday. Lovina is a group of villages located on the northern coast of the island to the west of Singaraja. Many hotels and guesthouses on the shores of the Balinese Sea are waiting for guests. Lovina is famous for dolphin excursions — you are put on a boat and taken to a place where you can watch dolphins.
Nearby is the largest Buddhist temple, with several golden Buddhas and stupas.
There are many cafes in Lovin, where live music plays in the evenings. It is not uncommon for local artists to perform together with foreigners.

Uluwatu
The mecca of surfing in Bali is the Uluwatu area. Due to the sheer cliffs directly at the shore, there are few hotels, but quite decent accommodation can be found in the town of the same name nearby. Only experienced surfers settle in Uluwatu for a long time, because it is difficult to swim among the local waves, and there are no other entertainment nearby.
Main characteristics of Uluwatu:
Location: Southwest of Bukit Peninsula.
Distance to the airport: about 22 km.
Interesting places: the famous Uluwatu Temple.

Grocery stores and markets are within walking distance. Excellent roads, but already than in Russia because the main means of movement is a moped. Quality medicine. There are Russian kindergartens in large areas. At the same time, there is a shortage of restaurants and economy, business class, luxury housing.