What You Can Invest in Bali with a Budget $75,000 - $150,000:

 

You can explore these leasehold options if you have a budget ranging from $75,000 to $150,000.

 

Apartment, Loft, and Studio with Leasehold Options

 

In this budget area, you can find apartments, studios and lofts with lease terms between 20 and 25 years. Since these properties usually consist of single rooms or, in some cases, a maximum of two bedrooms, the demand for these properties is higher than for other rooms because they are cheaper. Besides, more and more solo travelers or couples are visiting Bali as the island becomes increasingly popular for honeymooners and digital nomads.

 

Under USD 150k, it is not uncommon to find an apartment with a lease term beyond 25 years in our listing, just like this apartment in Berawa.

Photo by Bali Home Immo

 

A well-managed rental apartment can give you more than 10% returns, and it is not uncommon to get your capital back within 5-7 years. The rest of the lease period can let you generate more income for years. And if you’d rather be more relaxed, you can use your apartment in Bali as a pied-a-terre while you travel to the island.

 

Villas with Shorter Lease Periods

 

Alternatively, consider investing in villas with lease durations ranging from 10 to 15 years. Opting for shorter leases facilitates easier rate negotiations and promises a high return on investment. 

 

You can get this fully furnished modern villa in Seminyak for just USD 90k.

Photo by Bali Home Immo

 

Villas with a lease period of 10-15 years typically achieve break-even within a maximum of 3-5 years. While lease extensions are not assured, numerous instances exist where investors have found the opportunity to extend for an additional 5-10 years after initially investing in a villa.

We have curated some villas that tick all the marks for investment. Check this link to explore more options for apartments and villas with leaseholds 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.

A guide to open Airbnb in Bali as foreigner

 

Bali proves its resilience and remains in Tripadvisor’s top 5 popular destinations in the world this year, after previously holding the number one spot in 2021. Tourists from all around the world have been looking forward to visiting the island, and most of them can now come because quarantine-free international travel to Bali has been reinstated for 23 select countries. With that said, we perfectly understand if you want to seize this opportunity and rent out your villa on Airbnb to welcome those eager travelers.

 

Vacation rentals prospered in Bali thanks to tourism, and this development is a positive sign that the short-term rental industry could return to its highly profitable state very soon. Before you jump into the Airbnb business, let’s take a quick look at Bali’s vacation rental market and how you can start your own rental.

 

How is Bali’s short-term rental market?

 

Before COVID, the vacation rental market was flourishing more than ever. Over six million international tourists visited Bali in 2019 and the island still managed to attract one million tourists in 2020. Demand was at an all time high and steadily grew with Canggu in the lead, and experts are confident that Bali will recover quickly and grow even bigger than before once international travel is completely restored.  It’s also worth noting that, unlike other touristic regions, Canggu was not severely affected by the pandemic thanks to digital nomads and long-term tenants staying in villas.

 

Average demand growth based on bookings made in 2017, 2018, and 2019

Source: AirDNA

 

Since Bali’s borders reopened, the number of international arrivals has increased by 13,62% in the first quarter of 2022. Combined with the government’s efforts to ease travel restrictions even further, this could be the beginning of the long-awaited return of Bali’s tourism. 

 

Also read: Bali rental market in the first quarter of 2023

 

Is it profitable to open an Airbnb in Bali?

 

Yes, always has been. Back in 2017, The Telegraph reported that the average yearly earnings of Airbnb listings in Bali was over $40.000, beating out major cities including Tokyo, Barcelona, and London by a landslide. There was a significant increase in monthly revenue from 2017 to 2019, particularly for villa rentals in Canggu where the average growth was around 20% per year. This combined with the increasing demand could potentially yield better outcomes considering that Bali is starting to welcome travelers again.

 

Average monthly revenue in 2019

Source: AirDNA

 

As stated in a previous article, villas are excellent for investment because the average forecasted ROI in Bali is between 8-12% depending on the location, with Seminyak villas offering the best return potential closely followed by Canggu. Villa prices in Bali remained stable despite the pandemic, with only a few properties actually dropping in price because most owners chose to rent out rather than sell during this period.

 

Also read: 6 Things You Must Know Before Buying Property in Bali

 

How do you open a vacation rental as a foreigner?

 

Having the appropriate building permit (known as IMB or PBG) and business license is necessary to run a daily villa rental in Bali. Villas typically have a Rumah Tinggal (residential) permit, whereas a vacation rental requires a Pondok Wisata (homestay) permit. It’s important to note that Pondok Wisata can only be obtained by an Indonesian citizen and can only be applied on properties located within a tourism zoning, thus you will need to acquire a property that already has a Pondok Wisata permit if you plan to rent out immediately. If you're interested, we have curated villas that already include a Pondok Wisata permit here.

 

3 Bedroom Villa For Sale Leasehold Near Batu Belig Beach - L132

 

As for the business license, you can set up or acquire a foreign owned company (known as PT PMA) in the Hospitality Management Consulting classification. Having a company offers several advantages including the ability to acquire freehold properties in the company’s name.

 

Also read: How to Acquire a Property using a PT PMA

 

Feel free to browse our collection if you're looking for villas suitable for a short-term rental business, and do not hesitate to contact us for more information about investing in villas or Bali real estate related topics.

 

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. Past performance is not indicative of future performance and should not be relied upon as a basis for an investment decision. Some of the information provided in 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.