Buy villa in Indonesia region in Bali city in East-Bali

Villa in Bali. City - East Bali

The total area of the complex is 1900 square meters, which includes the building of apartments for 12 rooms located on two floors, as well as 24 double smart villas of 62 square meters. each. There is a developed internal infrastructure. Swimming pool, recreation areas, in the neighboring apartment building training hall, sauna, hammam, reception, security service and video surveillance system, parking for cars and motorcycles. The property is rented in a ready-made form "turnkey", i.e. includes furniture, appliances, plumbing, engineering systems.

Liquidity factors

Location

PERERENAN Beach 12 minutes, SESEH 20 minutes, CEMAGI 25 minutes - on foot.

The Pererenan district is a new center for expats and tourists. It is advantageously distinguished by new infrastructure, premium real estate, moderate traffic, an abundance of points of attraction of tourists, green areas.

The plot of land on which the villas will be built is surrounded by new buildings and rice fields. According to the agreement with the land owner, these plots cannot be built up in the next 8 years.

External infrastructure

Within a radius of one kilometer from the complex there are new premium restaurants of the Pererenan district, Jungle Padel sports club, sports halls, spa, Pepito supermarket 6 minutes drive from the complex.

Transport accessibility

Transport accessibility, allowing quick access to all the main areas of Bali : Airport 65 minutes / Ubud 70 minutes / Seminyak 40 minutes / Changu 10 minutes.

LeaseHold>

The contract with the land owner is signed for 30 years. There is a guaranteed extension of the lease term after the first five years of ownership.

Duration of construction:

beginning of 01.02.2024 - completion of 30.12.2024

Financial model

First stage of sales. Maximum profit of the investor.

Includes all taxes.

#	Type of real estate	S msq.	Price per sq.	Cost
1	SWOI GARDENS 2 bedroom villa	62	$1,774	$110,000 *

*the price of $110,000 is relevant when making a down payment of 70%

If you make a down payment of 60%, the price will be $ 120,000

When making a down payment of 50%, the price will be $ 130,000

Exit 1. Rent Business

Indicator	Apartment Redesigned
Average daily rental rate of $	120
Occupancy, %	75
Gross Income, $	32,850
Utilities payments 12%	3,942
Commission 20%	6,570
Aggregator Commission airbnb/booking.com 13%	4,270
Net profit	18,067
ROI / return on investment	16.42% 6 years

Exit 2. Transaction

Indicator	Apartment Redesigned
The cost of the finished object	180,000
Mandatory land tax	2000
Amount of investment	110,000
Net profit	59,000
Aggregator Commission airbnb/booking.com 13%	4,270
Net profit	18,067
ROI	53.63%

Strategy:5 years of rental business, then sale of the asset.

Lease the first 5 years

Net profit in the first year - 18 000 $
Second year + 3% (minimum inflation rate) = 18 500 $ Third year + 3% = 19 100 $; Fourth year +3% = $19,700; Fifth year + 3% = $20,300
TOTAL on lease in 5 years You will earn: $95,600

Sale in 5 years

Today, sq.m. of finished real estate is estimated on the market at 3000 USD minimum. With a minimum price increase of 3% per year, in five years, sq.m. will cost $ 3,500. The value of the asset will be a minimum $217,000.
You will need to pay a 5% brokerage commission to find a buyer, as well as a fixed land tax of $2,000. Thus, your net profit will be: 217,000 - 110,000 - 10,850 - 2,000 = 94,150 $

The total net profit for 5 years will be:

Lease + resale = 95,600 + 94,150 = $189,750 or 34.5% of annual net income.

Interaction

Payment plan:

Reservation Deposit $2,000 / Signing of an Agreement of Intent / Legal Review Period (up to 15 days)

First payment 5 days after signing contracts - 70% minus $2,000 deposit

Follow-up payments on an agreed schedule based on your wishes, for example 3 payments of 10% every three months