House on a paradise island: is it worth buying property in Bali

The question of reliable investment options is particularly acute. Today we will tell you not only about a relatively reliable way to invest money, but also one that is quite profitable. The company will help you find the most promising option for placing capital. 

Investments in real estate in Bali - risks and prospects

Bali is an island in Indonesia that is a popular tourist destination. Investments in real estate on the island for the purpose of subsequent rental can bring the investor more than 140% per annum over 5 years, and upon resale of purchased properties - all 300%. At the same time, investments in real estate in Bali are characterized by relatively low risk. Firstly, the Indonesian economy is one of the largest emerging economies in the world. It ranks 7th in terms of GDP per capita, and the Indonesian rupiah is characterized by low volatility in relation to world currencies. In addition, Indonesia traditionally does not take part in various political conflicts and does not impose sanctions against other states . However, it must be borne in mind that few people can afford such investments. The high cost of real estate on the island is due to high demand and limited supply. To date, about 95% of the land in Bali has been developed and is suitable for the construction of facilities for rental to tourists.

Investments in real estate at the development stage

Investments in real estate in Bali at the construction stage are guaranteed to bring income to the investor after construction is completed. According to statistics, over the past 5 years, the cost of land plots in tourist areas has increased 3-5 times; accordingly, the cost of real estate shows similar dynamics. In just a year you can get about 40% - 50% per annum if you sell a property purchased a year earlier. It is no less profitable to purchase real estate properties under construction for the purpose of their subsequent rental. After construction is completed, the investor can receive stable passive income from tenants. Given the growing demand, rental profits will only increase.

Investments in ready-made real estate

Investing in ready-made real estate is a more expensive option and is a long-term investment. In the short term, such investments are much inferior to investments in real estate under construction. The only advantage of buying a ready-made property is the ability to immediately rent it out and start receiving passive income. However, the payback period for investments will increase significantly, since the initial investment amount is usually one and a half times more. Therefore, the most profitable option is to purchase real estate at the development stage; the main thing is to carefully analyze the potential of the property under construction.

Posted in Default Category on November 15 2023 at 03:16 PM

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