What You Can Invest in Bali with a Budget $150,000 to $650,000

 

Investing in Bali with a budget between $150,000 and $650,000? In this article, we will talk about one investment option that will best suit this budget range. Keep reading to know more.

 

Long Lease Apartments and Villas

 

With a budget in the range of $150,000 to $650,000, long lease apartments and villas are the best options. When we mention ‘long’ we mean a really long lease, which typically extends from 25 to 35 years. More often than not, the landlord also offers a long extension option, between 15-25 years.

 

A chic contemporary villa in Canggu that offers a high return on investment.

Image by Bali Home Immo

 

Within this budget range, you’re also spoiled with choices. From the number of bedrooms, styles, to locations. With the long lease period it offers, you can also consider off-plan properties, which provide a more trendy style to market taste, and prices below the market compared to the finished one. 

 

Long lease properties are excellent for investors seeking both an occasional peaceful retreat and a reliable source of rental income.

We have curated some villas that tick all the marks for investment. Check this link to explore more options for long lease apartment and villa properties in Bali.

 

 

Disclaimer: The content provided in this article is intended for informational purposes only and should not be construed as legal, financial, or investment advice. Bali Home Immo does not assume any responsibility for losses or damages incurred by readers based on the information contained herein. It is strongly recommended that readers consult with qualified legal or financial professionals and experts before making any legal or investment decisions.

Bali’s property market has shown significant growth since the first quarter of 2023. With occupancy rates increasing, villa investment has become a notable option. The question is, how much does a villa cost in Bali? In this article, we will give you a snippet of how much it costs and what factors influence it. 

Factors Influencing Villa Costs

Location

 

Villas in bustling tourist hubs like Canggu, Seminyak, Uluwatu, and Ubud command higher prices due to their proximity to attractions. On the other hand, those situated in quieter residential areas like Babakan, Tumbak Bayuh, and Umalas offer similar amenities at a more accessible price point, making the location a pivotal consideration for potential buyers.

 

For instance, a villa located in the middle of Canggu would have a price range starting from $200,000, meanwhile, similar villas located in Pererenan would have a price range starting from $170,000. Further west of Canggu, the property location is, cheaper it will be. 

 

Rental Potential

 

Aesthetics is not the only thing that affects your villa’s valuation, legal considerations play a major role. Villas with daily rental permits or situated in zones allowing daily rentals hold a higher value. These factors will make the villa easier to rent out and generate returns. If you’re buying off-plan, a developer’s reputation boosts a property's worth and influences its Average Daily Rate (ADR). 

 

 

Villa Amenities and Design

 

Luxurious amenities significantly impact villa costs. Villa with private pools, landscaped gardens, and high-end fixtures contribute to a property's cost. With a growing emphasis on wellness, the demand for villas with gyms and spa facilities is on the rise, adding another layer to the pricing.

 

Well-maintained properties often command higher prices compared to their outdated counterparts. Potential renovation costs should also be factored in, influencing the overall expense for prospective buyers.

 

Land and Building Size

 

For villa prices in Bali, larger villas, catering to extended families or event hosting, are in high demand, driving up their market value.

 

Ownership Title / Lease period

 

Freehold properties cost more compared to leasehold, however, freehold properties have fewer options to choose from. Leasehold, on the other hand, provides more various options from designs, amenities, prices, etc., and no complicated requirements to purchase, one only needs a passport. Thus, leasehold properties have higher demands among foreigners.

 

When we talk about leasehold properties, the leasehold term is the one factor that affects a villa price in Bali. A longer lease, spanning, for example, 35 years, correlates with higher property value. Few properties also provide a leasehold extension, making it a more beneficial option. While the initial price may be steeper, the extended leasehold period proves beneficial in the long run, highlighting the importance of balancing initial costs with long-term gains.

 

Conclusion

 

Once this is all sorted out, you can start your investment journey in a villa in Bali. Here is a recommendation for investments in the budget range of $150,000 to $650,000. It will be even more beneficial if you invest in a luxury villa with a starting budget of $650,000, and here's how you can do that.

 

If you’re considering owning a villa in Bali, you should consider various factors that influence the price. Each facet contributes to the overall cost from location and size to amenities, ownership types, and legal considerations. Bali Home Immo offers a one-stop solution for a smooth sailing villa investment journey. Check out our website to find the best-fit villa for your budget. 

 

Disclaimer: The information presented in this article is meant solely for informational purposes and should not be interpreted as legal, financial, or investment advice. Bali Home Immo holds no responsibility for any losses or damages suffered by readers relying on the content herein. Readers should seek guidance from qualified legal or financial professionals before making any legal or investment-related decisions.

 

7 Costs you need to cover in Bali Rental

 

So, you finally decide to set up a villa rental in Bali or even already own one! However, managing a villa comes with various expenses that you might not have considered. In this article, we'll outline the most common villa expenses in Bali rental to help you prepare and budget effectively. Let's dive in!

 

List of Bali rental monthly cost

 

1. Maintenance

 

Owning a villa in Bali requires regular maintenance to ensure it remains in excellent condition. Maintenance expenses may include repairs, refurbishments, landscaping, pool cleaning, and pest control. Setting aside a budget for maintenance is crucial to upholding the quality and attractiveness of your property. 

 

You must set aside your profit from the Bali rental villa for maintenance.

Photo by toa55 from akaratwimages

 

Saving a part of your rental revenue as a sinking fund for maintenance is the most common practice for villa owner who rents out their property. For routine maintenance, we advise to set the budget between 2-4% of your rental annual revenue.

 

2. Employee

 

Hiring employees for your villa rental is common in Bali. This expense covers salaries for housekeepers, gardeners, security personnel, and other staff members. Remember to comply with local labor laws and provide fair wages to your employees.

 

Indonesia has what's called UMK (Upah Minimum Kabupaten or regency minimum wage), which refers to the minimum monthly wage regulation that employers must adhere to. It is calculated based on the minimum costs that are needed to cover a minimum living standard for an individual in the region. So far, the UMK has always risen following the annual rate of inflation and rising prices of goods in the market.

 

Investing in employees by paying them well can get your rental villa in Bali goes far.

Photo by cottonbro studio in Pexels

 

Currently, in 2023, Badung Regency holds the highest minimum wage in Bali, with 3,1 million IDR per month which includes popular areas like Kuta, Seminyak, Canggu, Pererenan, Bukit Peninsula, and more. Notable areas outside of Badung Regency include Ubud, which is located in Gianyar Regency. You can check here for more info about UMK in Bali each year.

 

Besides the UMK, employers should also ensure that employees are covered by insurance, which must be paid through the government program called BPJS. BPJS payments are separate from the UMK and represent the minimum compensation employees should receive. Therefore, it's essential to include insurance payments in the overall salary package.

 

If you want to know more about what employers should or should not do in Indonesia, you can check more here.

 

3. Electricity

 

Electricity costs can be significant, especially if your villa has a large power source and offers various amenities like air conditioning, heating, or a smart home system. Implementing energy-efficient measures and being mindful of electricity usage can help reduce this expense.

 

4. Internet

 

Offering reliable and high-speed internet is a must for daily living in this day and age. So, unless you try to sell your villa as a hermit retreat, you should factor the expense of internet services into your overall operating costs.

 

Having an internet connection in a villa is essential in today's times.

Photo by PhotoAttractive from Getty Images Signature

 

One of the most popular internet service providers for villas or hotels in Bali is Global Xtreme & CBN. The lite package starts from 250K IDR while the ultra high speed at 1 million IDR per month, where you'll get a guaranteed 100 Mbps internet speed. Custom packages are also available if you need even faster speeds.

 

5. Banjar

 

In Bali, contributing to the local Banjar (community association) is customary. Besides further ensuring security around the neighborhood, the Banjar fee also supports various community initiatives, including local events and ceremonies.

 

Pecalang from a Banjar provides added security to the neighborhood.

Photo by Sue in Flickr

 

Read more: What is Banjar in Bali?

 

The fee of each Banjar varies, depending on each rule and policy of the local neighborhood. For a villa that is used as rental accommodation, the local Banjar will charge you, the rental business owner, between 50k IDR to 250k IDR a month.

 

6. Bin Collection

 

In Bali, the usual practice for bin collection involves a pickup service facilitated by dump trucks, following specific schedules. These trucks collect garbage directly from in front of the villa, maintaining a routine. It's important to be aware that during significant Hindu religious ceremonies like Galungan or Nyepi, the garbage pickup service may be temporarily halted, as the service providers participate in the ceremonies. 

 

Eco-friendly waste management can be a deal breaker for your villa rental in Bali.

Photo by Eco-Bali

 

On the other hand, the rising trend of eco-friendly practices in waste management is significantly impacting the villa rental landscape. Responsible waste management and recycling have taken center stage, and this eco-friendliness adds considerable value to your rental villa. In fact, for some prospective tenants, your villa's commitment to eco-conscious practices can even be a deciding factor. Exploring the costs associated with eco-conscious bin collection services not only demonstrates your commitment to minimizing your villa's environmental footprint but also appeals to environmentally-conscious renters.

 

If you’re interested in getting the service, you can connect to one of them here.

 

7. Income & Land Taxes

 

As a villa owner, you are subject to taxes on the revenue generated from rental bookings. Consult with a tax professional to understand your tax obligations and ensure compliance with local tax laws.

 

Rental villas in Bali are subject to taxes.

Photo by olm26250 in Getty Images

 

Land taxes usually cost way less than income tax. When you lease land in Bali, in most cases you pay the land taxes during the period of lease.

 

Owning and managing a villa rental in Bali can be a rewarding venture, but it requires careful financial planning. By acknowledging and accounting for the various expenses outlined in this article, you can run a successful and sustainable villa rental business in Bali.

 

Disclaimer: The information presented in this article is intended for informational purposes only. It should not be considered as a substitute for professional advice or used as a basis for making legal, financial, or investment decisions. Readers are encouraged to seek guidance from qualified experts or professionals before taking any actions based on the content provided in this article. The author and publisher do not accept any responsibility for any consequences or losses resulting from the use of this information