ROI Calculator

ROI (Return on Investment) measures the profitability of your investment. For Bali real estate, ROI helps you determine the potential earnings from rental income, property appreciation, or reselling. Understanding ROI ensures you make informed decisions about your property investments.

A 10-20% ROI is typical for vacation rentals in prime locations like Seminyak, Canggu, or Ubud. Higher returns may be possible with luxury villas or strategic investments in up-and-coming areas.

Foreigners can’t directly own freehold property in Indonesia but can invest through:

• Leasehold agreements: Typically 25-30 years, with renewal options.
• Nominee structures: Involving trusted local entities.
• Foreign-owned companies (PT PMA): For commercial real estate investments.
  Always seek legal advice to ensure compliance.

Key factors include:

• Location: Properties near beaches, tourist hubs, or in luxury areas yield higher returns.
• Property type: Villas generally perform better than apartments.
• Tourism trends: High and low seasons directly affect rental income.
• Operational costs: Maintenance, staffing, and management fees can influence profitability.

Tourism drives high rental demand, especially in areas like Canggu, Seminyak, and Ubud. However, external factors like global travel restrictions or local regulations can temporarily impact occupancy rates.

• Invest in popular or emerging locations.
• Partner with professional property managers.
• Optimize your property’s design and amenities to attract high-paying guests.
• Leverage digital marketing to increase bookings.