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BALI PROPERTY
The demand for Bali property is at an all time high combined with an entry price at a fraction of Australian property.
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What is the demand?
Over the past four years, Bali's tourism has experienced fluctuations due to COVID pandemic. In 2019, Bali welcomed approximately 6.3 million foreign visitors. The pandemic caused a drastic drop in 2020, with only about 1 million tourists, and only 51 visitors in 2021. However, 2022 saw a strong recovery with 2.2 million visitors. In 2023, Bali experienced a remarkable resurgence with 5.27 million foreign tourists, reflecting a robust rebound in its tourism sector. The Bali Government has forecast 7.0 million visitors in 2024.
Why Use Us?
Experience: We have a number of our own properties in Seminyak Bali and manage them successfully with our team on the ground in Bali.
Property Sourcing: We offer a service to find you a suitable property and set it up for rental arbitrage on Airbnb. We also offer a service to find you long term leasehold property through our key partners in Bali where you have the option to buy a fractional investment starting from 10% of the purchase price up to 100% of the full purchase price.
Property Management: We have a professional property management team in Bali to manage your property.
Contracts: We negotiate all property leases and have a local legal advisor.
SMSF Suitable: This type of investment may be suitable for direct personal investment or you Self-Managed Super Fund (SMSF).
Low Entry Price: Starting from AUD60,000.
High Returns: Earn 20%+ returns .
Personal Use: You retain the right to stay in your property when you visit Bali.
BUYING PROPERTY IN BALI
Leasehold
In Bali, leasehold property involves leasing land or property from the owner for a specified period, typically ranging from 25 to 80 years, however it can be for a shorter period like 2-5 years. Foreigners can hold leasehold property, but they cannot own freehold land. Lease agreements can usually be extended by mutual consent. The leaseholder has full use of the property during the lease term and can rent it out, sell the remaining lease period, or develop it.
However, all developments must comply with local regulations, and at the end of the lease, the property reverts to the landowner.
Rental Arbitrage
Arbitrage is the act of buying and selling something at the same time to make a profit. The idea is to buy something at a low price and sell it at a higher price. Rental arbitrage is leasing a property under a long term agreement (leasehold) and then turning it into short-term holiday rental utilising third party booking websites such as Airbnb. The goal is to have the revenue from short-term rentals exceed the cost of leasing, furnishing and managing the property to generate a profit.
Typical Costs with Rental Arbitrage
- Full time cleaner 6 times per week
- Pool and landscaping maintenance 2 times per week
- Garbage removal 2 times per week
- High speed internet
- Security fee for local community patrols
- Laundry charge for dry cleaning linen
- Consumables such as toilet paper, coffee, tea, water bottles and soap
- Electricity
- Maintenance such as replacement of light bulbs, steam cleaning furniture and A/C maintenance
