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How to Earn Passive Income from Property Investment in Bali

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Bali is arguably the best destination in Indonesia to buy property for rental investment because of the excellent ROI, but not everybody has time to deal with the responsibilities of being a landlord. Turnkey investment properties are designed to be the solution for that problem, and nowadays there’s a wide selection of turnkey opportunities available in locations with high rental demand such as Canggu.

Investing in turnkey properties offer several advantages, but first let’s start with what turnkey property investment is all about:

What is a turnkey property?

 

In Bali, a turnkey property is an apartment or a villa for sale offered with property management services in the package and it is typically purpose-built as a vacation home rather than a permanent residence. The management company will fulfill the duties of renting out the villa including sales & marketing, guest management, and property maintenance. Meanwhile, the buyer gets to enjoy a regular stream of income from the rental and spend their vacation in the property every year without having to worry about getting tenants, managing bookings, handling check-ins and check-outs, and so on.

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Turnkey Beach Townhouse for Sale Leasehold in Berawa Beach, Canggu

Investing in turnkey real estate is an excellent way to generate passive income as turnkey properties don’t need the buyer’s time and effort to run. It can take a while for properties to start generating income especially if the buyer has no experience in running a rental, and owning a good turnkey property backed by a reputable management company can jumpstart the buyer’s cash flow almost immediately. Moreover, renters won’t have a problem paying a premium for a well-managed and high-quality property.

How does turnkey work?

 

The buyer will sign a management agreement with pre-arranged terms on how often the buyer can stay in the property, on what basis does the buyer receive their income, and so on. The terms of the agreement vary by the management company, with some offering flexible arrangements that allow the buyer to stay indefinitely and some limiting the stay to only several days/months in a year for the best return.

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Turnkey Apartment inside a Beachfront Resort for Sale in Gili Trawangan

The fee of turnkey property management is commission-based, and the management of a villa complex usually charges more than a standalone villa as they include maintenance for common facilities. But that doesn’t mean that the buyer will have a lower yearly payout because the occupancy and daily rate of such villas tends to be higher and it’s better to get 60% of 100$ than 80% of 50$. Nonetheless, the return will largely depend on how well the management company rents out the property and how attractive the property is for short term rental.

Are turnkey properties a good investment?

 

Yes they are, especially for long distance real estate investors and newcomers. As stated in the beginning, turnkey investment properties are the perfect solution for hassle-free investing as the buyer doesn’t have to lift a finger to generate income. In addition, long-term management agreements offer the opportunity to enjoy years of effortless living which is a luxury that most landlords can’t afford.

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Turnkey Hilltop Villa inside a Boutique Resort for Sale in Lombok

Most turnkey properties for sale that you can find these days are off-plan villas or apartments, and Bali Home Immo has a handpicked collection of properties with excellent ROI and prime locations that will certainly suit your investment goals. For more information on real estate investment or turnkey properties for sale in Bali, do not hesitate to contact us.


Disclaimer: The content of this publication is provided as general information only and does not constitute legal, financial, tax, or other professional advice from Bali Home Immo. Some of the information provided on this publication is obtained from a third-party source and we do not guarantee that the content of this publication is accurate, complete or up-to-date. Past performance is not indicative of future performance and should not be relied upon as a basis for an investment decision.