Real estate earning cases in Bali

Examples of earning money on real estate in Bali

This article describes specific examples of earnings received by investors who worked with the investment proposals selected by us:

1.Purchase of a villa under construction for rent with a yield of 17%

The investor purchased a detached two-storey, three-bedroom villa with a swimming pool under construction.

The plot area is 180 m2. The area of the villa is 250 m2. The price is $ 225,000. $ 1,250 per m2 of living space.

After 4 months, the villa was put into operation.

The investor handed over the villa to a management company with the expectation of renting it daily for $ 210 per day, which would give revenue of $ 6,300 per month and $75,600 per year.

After paying all expenses and taxes, the income amounted to
$37,174 per year at 16.5% per annum.

2. Buying and selling with a yield of 23%.

The investor purchased a villa of 120 m2 on an area of 200 m2 under construction for sale.

Entry price 180,000 $
Sale price $ 230,000
Margin of $ 50,000
Return on sales during the year 27%

3. Investment in a development project before the start of construction (Off plan) and sale during the completion of construction - 34% per annum.

The developer planned to purchase 1 hectare of land in a good location of Umalas district and created a project of a complex of 9 villas an average of 100 m2.

Having estimated the cost of similar villas and rental income in this location, as well as their expenses, the developer determined that the cost of m2 after commissioning of the facility will be $ 2,000. And the cost of construction will be $ 1,500 per mm2.

Further, the developer formed a development project where he offered the investor to purchase a plot of land for this project, build the first villa in this complex and receive 35% profitability during the year. After receiving an investment of $ 300,000 at the beginning of the project, the developer - together with the investor created a legal entity. The developer purchased a plot of land, issued building permits and launched the construction process. Within 9 months from the start of the construction process, 2 villas were sold in the amount of $ 380,000 and the investor received $ 80,000 profit. The yield for 9 months was 26%, for the year it was 34%.

The price of entry into the development project was $ 300,000
The return on sales during the year is 34%

There are various schemes for entering into development projects to sell part or all of the objects to the next investor who wants to invest only in ready-made objects for sale on the secondary market or leasing. Where the investor's profitability is stipulated in advance, regardless of sales volumes.

4.Participation in Pre-Sale and installment payment - 100% per month.

An apartment complex of 200 units by the ocean. In the top location of Bali.

The price of entry to the Pre-sale is $60,000
The yield from the sale within two weeks is 100%

The developer purchased 1.5 hectares of land near the ocean, in Bali in a good location of the Sanur district and created a project of a hotel complex of 200 apartments with an average of 100 m2. Having studied the cost of renting apartments of similar quality and the cost of finished objects in this location, he determined the cost of a square meter at $ 5,000 per m2.

When buying these apartments, $ 5,000 per m2, those for $ 500,000 - 100 m2, these apartments will be rented for $ 350 per day, those for 126,000 per year, and taking into account the workload of the room fund and all costs and taxes, the investor will receive a net profit of $ 78,290 per year. The annual yield will be 16% and the payback of the object will be within 6.5 years. At the same time, this calculation does not take into account the annual increase in prices by 12% and the cost of renting housing, which increases profitability.

During the design work, the developer announced a pre-sale to cover the initial construction costs and provided an exclusive price of $ 2,000 per m2. The pre-sale lasted 1 day.

The investor understood that this price was 60% lower than the market price and booked an apartment of 100 m2 at a price of $ 2,000 per m2 - for only $ 1,000.

And the next day, the price was already raised to $ 2600 per m2. Thus, during the day, the investor planned to earn $ 600 per m2, those with 100 m2 - $ 60,000.

The following week, the investor who took the apartments for pre-sale paid 30% of the cost of the apartments for $ 60,000 out of $ 200,000 (he had to pay $ 140,000) and immediately put his real estate object up for sale.

During the next week, he sold the object with a new price of $ 2,600 per m2 and received revenue of $260,000 of which he paid the balance of the payment of $ 140,000, returned $60,000 to himself, paid the balance of the payment of $ 140,000 and earned another $60,000 100% in 2 weeks.

In this case, at the Pre-Sale stage, a total of 27 objects were sold during the week. Some of the investors immediately sold the objects, and the other part left the real estate objects in order to sell the objects at the next increase or still rent out with a high yield.

The price of entry to the Pre-sale is $60,000

The yield from the sale within two weeks is 100%

Of course, this is an exceptionally rare case.

And we are proud that we managed to find such an investment object for our investors.