It’s a no secret that Bali is Australian’s favourite playground. It’s hard to not love this island. The natural beauty of Bali may be found all around. There are numerous magnificent volcanoes, crystalline beaches, world-class diving, diverse nightlife, renowned ricefields, and beautiful waterfalls on the island. Australians know Bali’s best beaches like the palm of their hand and almost every bars around the coastal area rings with Australian accents. No wonder that many of the Australians find potentials in Bali for real estate investment. For them, Bali is not just a holiday destination—it’s becoming their second home.
Why Many Australians Buy Houses in Bali
A growing number of Australian decides to invest in the island and take it seriously. Compared to the exorbitant real estate prices in their own country, purchasers can get magnificent beachfront villas Bali with swimming pools and groomed gardens for a fraction of the price. Australians can easily swapped their average daily life back in the continent with a luxurious, celebrity lifestyle with private housekeepers, butlers, chauffeurs, and weekly party in their own private oceanside villa in Bali.
As a comparison, a 400 square meter to 500 square meter Bali property on about 1,000 square meters of land in Batu Belig, near trendy Seminyak, can be purchased for $1.5 million. According to the Domain Group, the median house price in Sydney is currently just under $1.2 million.
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A Second Home in Bali for Impromptu Vacation
Villas are in high demand, although the number of people buying for permanent residence is always significantly lower than those looking for vacation houses. However, several Australians come to Bali for extended vacations, staying two to three months each year. Bali, on the other hand, is ideal for retirees because long-term visas are granted for individuals over 65.
Turning Real Estate in Bali as Vacation Rental Business
Bali’s holiday rental industry has proven to be a profitable endeavor for those prepared to put in the effort. The return on investment for villas can be anything from 6 to 10%.
Seminyak, a popular tourist location, now provides the best return on investment, but competition is severe in this area. You might also want to consider the up-and-coming Canggu, where the present ROI is approximately 7% but is predicted to improve. Villa owners can expect a consistent stream of visitors and, as a result, excellent rental returns. However, from a quick glance at real estate website in Bali like Kibarer, you can see about 3,000 villas are available for rent and , this means tight competition of villas and price war.
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Owning A Real Estate for Business in Bali
If you want to rent out your villa in the future, you’ll need a ‘Pondok Wisata,’ or rental license, which can only be obtained by an Indonesian citizen and is usually in the name of the landowner. Luxury-seekers have gotten more choosy when it comes to their lodging, and vacation homes will need a competitive edge to stand out. One of the most essential considerations in the appeal of a villa to renters is its proximity to the beach. The most popular villa site in Seminyak is Oberoi Street. Customers also want villas that have a modern, minimalistic design. All of our guests expect a swimming pool, WiFi, and a lush, tropical garden. It’s also beneficial to have a cook on staff at the property.