We warn our investors that the main advantage in Bali is the rental yield. It is now one of the highest in the world and can reach 15% per annum.
"So what about resale, everyone is buying, paying only 20% and they are promised a quick resale!???". - you ask.
Let's get to the bottom of it!
- Income through the resale of real estate is possible and it can be significantly different from the rent, reaching a return of 20 - 50 percent, but it entails more risks.
The main thing that you need to understand - resale in 80 - 90% of cases will happen only at the stage of final or full readiness of the object. Since the assignment of the construction, most likely you will not be the same investor as you, and the end user, that is, the buyer who takes for a living, or for rent.
- For buyers of this type it is important to reduce risks, so it is easier for them to buy what they can see, touch, be inside.
Accordingly, by the time of resale, most likely, you will have to pay at least 80 percent of the total cost of the unit. And this is a realistic and pessimistic scenario, which you need to be prepared for. At the same time, it is realistic to make more than 20 percent return on the invested funds, if you observe all the criteria from the previous paragraph