Investing in property in Bali can be overwhelming for investors. Developers or real estate agents offer different projects with exciting ROIs that are difficult to verify due to the lack of information available or provided. So, where is the best place to invest in Bali? Where is the new place providing a good cash flow?
Bali has several growing areas that are constantly attracting visitors from all around the world.
Factors to consider before investing in a property in Bali
The strategy and approach of the investment must be differently measured based on different factors:
- Estimation of the Return: Lots of developers promise some return without any market study. The ROI is based on an estimation done when the market has fewer competitors.
- Risk and diversification: Is this property located in an active area, or am I ready to assume risk to invest in a new developing area and assume risks
- Duration of the investment: Am I looking to cash out quickly, or am I interested in recurring income?
- Capital Gain: Is the resell of the property part of the plan?
- Legality: Several properties now have a lack of documentation due to the illegal properties built.
- Target Audience: Knowing your customer is key when you invest in a property to rent out. If the market trend is to see Indians coming more and more to Indonesia, will my property be in line with this type of clientele?
- Competition: The number of purchases and leaseholds has brought unfortunate competition with some illegal constructions. It is important to check how the increasing number of competitors can affect the occupancy rate.
The Best Place to Invest in Bali in 2024 for Immediate Cash Flow
The best way to get immediate cash flow is to invest in Bali property that’s ready to be rented out on platforms like Airbnb or Booking.com. These properties are either already built or nearing completion.
It is unfortunately common to see investors investing in off-plan properties, immobilizing a large capital, and not providing a return on investment for more than 1 or 2 years due to some delays on some projects. Developers are taking out loans on the backs of investors and financing their development. The difference with a bank is that the clients don’t receive any compensation (no interest rate).
Ubud
Bali has its place that will always attract visitors, and a good occupancy rate influences the ROI. Ubud, known as the cultural center of Indonesia, has always attracted tourists since early of the early 20th century and continues to attract visitors from all around the world. While Canggu or Uluwatu is famous on Western social media, Ubud is attracting visitors from a large amount of country attracted by the monkey forest, the temple, the rice field, and other beauty of this natural jewel.
Seminyak
Seminyak is another great location to invest in Bali property. Known for its nightlife and dining, it attracts a global audience. Located near the airport, Seminyak is often a top choice for visitors from countries like Australia, China, India, and France. Many tourists stay a night or two here due to its proximity to the airport and the variety of facilities available.
Berawa
This place has almost no land for sale anymore. Located on the north of Seminyak, this place has the most famous beach clubs of Bali, such as Finns Club, Atlas, and Morabito.
Bingin
It is an iconic village in the bukit (south of Bali) that had only a few competitors until recently. The large number of projects are in development. Investing in Bali property here can be highly profitable, especially in prime locations like Bingin Beach, which continues to grow in popularity.
The new property investment trend in Bali
Bali has seen expansion since the 90s, going from Kuta to Seminyak. Over the years, some places became more popular for several reasons.
- The price of land has increased significantly, and developers with a lack of capital are not able to acquire any land, and it pushes them to purchase or lease some lands in a cheaper location
- The density of Seminyak and Canggu has also pushed some tourists to stay in places more iconic.
Uluwatu and Padang Padang
Known for decades for its surfing spot, the area is now attracting not only surfers but also other types of tourists. While the north of Kuta with Canggu has black sand beaches, Uluwatu has pristine white sand beaches along the blue Indian Ocean. Due to the topography of the hill, It is not rare to have an ocean view from a villa.
Seseh, Cemagi
Seseh and Cemagi sit north of Pererenan and Canggu. Some developers have started to build in this area. The nice rice field makes this area a quiet place to stay, but it will probably not bring a great ROI on the daily rental.
Nyani and Kedungu
Those places are also trying to attract new investors near the developers’ playing area. We however see difficulties to the investor to get a high ROI in this area due to the lack of demand of people willing to stay in this area. The beauty of this area resides in the lack of development, which the developers are changing quickly, making, in the end, this place a residential area without any significant attraction.
How TokoInvest can help to invest in property in Bali
Our vision on where to invest in Bali
TokoInvest in selecting the premium property. After several years working in Indonesia, our property expert pay attention first to the ROI that the investor can do. The higher the ROI, the higher TokoInvest will make a profit. We are not at the difference with real estate; we only sell property. We accompany investors along with the investment and stay the partner to manage their property for the long term.
The team is doing proper market research and legal research to ensure a safe investment and ensure the best ROI
Our factor of decisions on where to invest in Bali
| Estimation of the ROI | Our team realise a market study and validate with Pulse Villa Management the ROI provided to ensure a secured investment |
| Risk | TokoInvest is assessing the risk and does not select properties in areas where they can purchase cheap land and sell at high prices. |
| Diversification | With its unique strategy of a pool of investment, TokoInvest selects different properties in several locations to ensure diversification. |
| Duration | The platform allows cash out by selling the Token at any time. However, our team will suggest to sell the property at the right time. |
| Capital Gain | Our properties are in a growing area to ensure a capital gain for the investor |
| Competitor | TokoInvest selects properties with the right design and location to attract tourists on Airbnb. |
| Legal | Our properties are reviewed by the ILA Legal Consulting Team to do proper legal, due diligence and ensure compliance with the local authorities. |
