Bali Villas For Investment

Investment Villas in Sanur Bali

Villa Allocation

Each villa will be managed as a rental villa when unoccupied by owner, ensuring a consistent income. Rental income generated by all villas (less taxes and management fees) will be divided among the owners in direct proportion to the percentage of ownership in the complex. The income from Spa will also be distributed in the same way, which gives you extra income. Dividend will be reported to each owner every month and paid annually.

Owners can anticipate return about 6.75% to 15.54% per annum. This calculation is based on 10 to 20 days per month of rental occupancy.

• Estimation of Income

This project is calculated to return the purchase price within approximately 7 years. Let’s examine the positive aspects of this project. Assuming that the purchase price was $150,000 after 7 years this money will have been completely returned and the villa will now be an asset. At this time, calculated at the lower market average the villas market value will be about 2/3 what it was when new.

(Actually the land lease still (Actually the land lease still has more than 2/3 of its duration remaining, and in Bali the real estate prices are rising so a better figure is probably 4/5 of the purchase price).

After the initial villa purchase price has been returned, a capital gain in the form of real estate with a value of 1 2million yen has been realized. This means your initial investment has grown from $150,000 to $250,000 which converted to a percentage, equates to 9.5% per annum.

After the initial investment of $150,000 has been returned, you decide whether to sell the villa or continue the hotel operation. Those who choose to continue can expect to earn over $214,000 in annual returns. The total returns excluding owner’s privileges from the start of hotel operations in 2009 for the next 23years comes to about $592,600.

Japanese bank interest rates are only 0.5% per annum, however Indonesian bank interest rates are 10% per annum so keeping your earnings from this project in a Bali bank will accrue a further increase in your assets.