Investing in Bali on a Budget : Beyond $1 Million

Investing in Bali on a Budget : Beyond $1 Million

As it is often acknowledged in the financial world, the more money you have, you more money you can make. The truth behind this is that the most profitable investment opportunities usually come to the largest pockets. It holds true when investing in Bali. With $1 million budget, a whole world of opportunities open to you, and with the right strategies, it can lead to substantial profits. Let’s dive into it.

1. Build Your Own Villa Development

With less than a million dollar, you can build more than one villa already (no more than 5 if you want quality), but we won’t call it a development. The real game starts when you have over a million dollar. It lets you envision bigger projects, in more premium locations.

Here you have two strategies : build to sell, or build to hold. You can also do a mix of both, which is my personal favorite. Building some villas for selling, and few villas for holding and renting, is a winning strategy because you can practically have the latter for free – providing some confortable margins on the sales. And knowing the high rental revenues generated by daily rental, it turns out to be a much more profitable investment in just a few years. Also, there’s only so many development opportunity, so it’s good to keep some money well invested in your own villas.

But bear in mind that becoming a real estate developer is a real job. And it’s not for everyone. You will need to gather the right team to help you find the land, design the villas, obtain the permits, manage the construction, and so on. Basically, if you are willing to actually becoming a developer, then it’s a much better (and safer) option to partner with an experienced team which will do the job for you – for a part of your profit.

Potential ROI*:  20%+

2. Build Your Own Eco-Resort or Boutique Hotel: Sustainable Luxury in Bali

Boutique Hotels and Eco-Resorts have been extremely popular in Bali. Well conceived, they promise revenues that surpasses what individual villas can reach. And let’s be honest, who wouldn’t like the idea of owning a nice and cozy 8-bedroom Boutique Hotel with ocean views.

This one is the pleasure investment, and it’s also the one that will keep you occupied. While you can make it managed by a professional team (check TKT), some investors decide to manage it by themselves – those who want to come live in Bali and need an occupation.

Building your eco-resort or boutique hotel demands not only financial investment, but personal investment. A proper market study will be necessary before committing to a location and to a concept. You will also need to work closely with architects and project management teams to bring your new venture to life.

Of course, if you want to avoid the hassle, there’s the option of going with an existing resort. If that’s something you are considering, reach out to us, we might have what you’re looking for.

Potential ROI*: 15%+

3. Invest in Land Banking

Land Banking is the roulette of Real Estate. You bet on a piece of land, and you expect it to grow in value in the next few years. Of course, unlike roulette, with a thorough understanding of Bali’s different markets, it’s possible to put the odds on your side.

Take Uluwatu for instance, if you’d buy a good piece of land 5 years ago, chances are you more than doubled your money already. Considering Bali’s overall growth, it’s quite unlikely for you to lose money on such a deal – or you had a very bad agent and you should come to us !

But land banking requires patience, as you won’t earn any revenues while waiting for your capital gains to increase – and it can take time for early markets. It’s only when selling that you earn the jackpot. That’s why we advise our investors to diversify between land banking and other property investments.

And it goes without saying, Land Banking works best with Freehold lands, not Leasehold. 

Potential ROI*: 50%+

4. Mix Different Strategies

For larger budgets, consider a mix of different strategies to tailor your investment portfolio according to your goals. Imagine allocating $1.5 million to blend villa development, boutique hospitality, and land banking. This diversified approach maximizes the potential for growth and resilience in Bali’s dynamic real estate market.

Picture investing in a villa development in Seminyak, a boutique hotel in Uluwatu, and strategically acquiring land in the emerging area of Karangasem. This mix of strategies offers a balanced portfolio: steady income from the developed villa, boutique hotel profits from the thriving Uluwatu scene, and potential substantial growth in the up-and-coming Karangasem.

At Emas Estate, we specialize in crafting bespoke investment portfolios. Allow our experts to guide you in creating a diverse strategy that reflects your vision and aspirations in Bali’s ever-evolving real estate landscape.

Conclusion:

In conclusion, investing in Bali with a budget beyond $1 million opens up a world of lucrative opportunities. Whether you choose to build your own villa development, create an eco-resort or boutique hotel, engage in land banking, or mix different strategies, the potential for substantial returns is real. However, it’s essential to approach these investments with careful planning, expertise, and a long-term perspective. Diversifying your portfolio and seeking professional guidance can help you navigate Bali’s dynamic real estate market and achieve your investment goals.

And if you think these options are a bit over budget for you, check out our article on investment strategies 500k$ to 1Million$

*ROIs are purely indicative, and can greatly vary. We recommend potential buyer to ask or calculate for precise ROI estimates when considering any investment.

Leave a Reply

Your email address will not be published. Required fields are marked *

en_GBEnglish

Compare