Most investors nod along at yield reports without really understanding them. Here's exactly how we build ours, what each number means, and how to use it to make a better decision.
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Most investors nod along at yield reports without really understanding them. Here's exactly how we build ours, what each number means, and how to use it to make a better decision.
We don't start with what a developer says a property will earn. We start with what comparable properties in the same area are actually producing on the market — occupancy rates, daily rates, seasonal patterns. That real-world data is the foundation the projection is built on, not an estimate or a target.
We don't use straight-line projections. A new rental property doesn't perform at full capacity from day one, and markets don't grow at a fixed percentage year after year. Our model accounts for this, including the ramp-up period a new listing needs before it builds reviews and visibility on the major platforms.
The result is a projection that reflects how a property is likely to perform in practice, not under ideal conditions.
Gross revenue is the number that tends to appear in developer materials. It's also the least useful number for evaluating an investment.
What determines actual return is what's left after operating costs: property management, platform fees, utilities, maintenance and taxes. In Bali's short-term rental market, these costs consistently consume a large portion of gross revenue. Our projections account for all of them individually.
The projection shows three scenarios based on different market conditions. The average case is the most useful reference point. Best case tells you the ceiling under favourable conditions. Worst case tells you how the investment holds up if the market underperforms.
Pay attention to the payback period. Because the full purchase price is deployed upfront, cumulative cash flow starts negative and builds over time. This is normal for any capital-intensive asset. The payback period tells you when the investment breaks even on a cash basis.
The resale estimate is based on the income the property generates, not on speculative market appreciation. A property that performs well operationally is worth more at resale, and the projection reflects that relationship.
Remaining lease years and applicable transaction taxes are factored into the net proceeds figure. The number that matters is what reaches you after the sale, not the gross price.
A projection is not a guarantee. Real-world performance depends on management quality, how quickly a listing builds its reputation, and market conditions that no model fully anticipates.
What our reports do provide is an honest, data-grounded view of what a property is likely to produce — including the downside scenarios that rarely appear in developer materials.
Browse the properties we've analysed or get in touch if you want an independent yield report on a specific property.
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