Calculate Potential ROI Bali Villa

Villa are an investment instrument that is widely favored by both foreigners and local residents of Bali. Having a villa in Bali tends to get a good ROI rate, because Bali has a never-ending tourist rate and consistency.

Before you invest in a villa, make sure you have a good plan and ROI estimate according to the villa and location you are planning.

How to Calculate ROI?

The ROI formula is: (profit minus cost) / cost. It's calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100. Consult with @mielproperty how you calculate ROI by clicking the link below.

Villa ROI calculation by Area

Each area in Bali has different rental values, basically this will affect your ROI percentage. Here we describe the estimated ROI based on the area.

Jimbaran Area

Jimbaran is no less popular than Canggu, therefore the rental value of villas here is quite good. Jimbaran is an area that has beach, therefore the rental value of the villa here is quite good. If you have a 2 Bedroom villa in this area, the daily rental value can reach IDR 2,000,000 per night.

Canggu Area

Canggu is an area that has quite a lot of interest, therefore the rental value of villas here is quite high. Canggu is an area that has quite a lot of enthusiasts, therefore the rental value of the villa here is quite large. If you have a 2 Bedroom villa in this area, the daily rental value can reach IDR 3,000,000 per night.

Estimation

Let's take one example, if you build a villa with a total capital of IDR 2,000,000,000 in the Canggu area. And you rent out your villa for IDR 3,000,000 per night with Occupancy rate above 60%.

Potential monthly passive income IDR 3,000,000 x 30 x 60% ( occupancy rate ) = IDR 54,000,000. 10% monthly charges ( tax, management & marketing ). Net profit monthly income is IDR 54,000,000 - 10% = IDR 48,600,000

Estimate ROI = Capital / Monthly Income / 12 * 10 = 34% / year.