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Introduction
Luxury Leasehold Villas - Perfect For Remote Workers & Expats
We broke down 5 investment properties that came across our desk at the time of writing, and here are the averages:
Location: Berawa/Canggu/Pererenan (The most desirable locations in Bali)
Size: 300 square meters (3,230 square feet)
Cost To Rent (For 5-Years): $63,750 (per villa)
Time To Remodel & Rent: 6-months (modest)
Annual Income: $15-20,000 (per villa)
Occupancies: 70-80% (even throughout the global pandemic)
Rental Market Appreciation: 4% (per year)
Breakeven: 4-5 Years
Description
According to NomadList, Canggu Bali has consistently been one of the top-5 locations for remote workers over the past 5-years.
Luxurious villas near the ocean and comfortable family homes nestled in the mountains are being snapped up quickly, making Bali a hot spot not just for international travelers looking to find balance and tranquility, but also for astute property investors.
Bali’s luxury property market is progressively attracting more and more property tycoons looking to cash in on capital gains and build a healthy property portfolio in a market that has seen rapid growth over the past few years.
Our partner's rental villas are a well-oiled machine, refined over decades of international and local property management experience.
We partner with the best agents in Bali to find average properties, in desirable neighborhoods, with above average potential to be remodeled and subleased. Then, our partners leverage their experience to get us the highest returns possible employing their adaptation of Airbnb arbitrage. Our marketing partners keep us above 70-80% capacity and our property management partners take great pride in meticulously maintaining each one of these beautiful rental properties. All of this is overseen by a small and experienced team of advisors who keep their eyes on the capital efficiency of our portfolio.
Some luxury markets come with high price tags and low returns, but not Bali. Property values in Bali are expected to continue increasing from 4-8% per year, with some estimates going as high as 16% per year. As more people make the switch to working from home, they'll have to choose between a modest 2-bedroom rental in a major metropolitan area, or a luxury villa in places like Bali. Our estimates of Bali's growth mirror Goldman Sachs', at over 18% growth by 2024.
Either way, Bali is a wonderful place to live, and the returns are tremendous.
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