Investment Highlights
Unless specified differently, most values and averages refer to the first five years of operation. Costs for additional expenditures are factored into the cash flow projections.
Est. Payback Period
11.9 yrs
Time for cumulative cash flow (incl. additional costs) to cover initial investment.
Avg. Yearly Net Yield
8.4%
Average annual return relative to total investment over the estimated payback period.
Avg. Yearly Net Income
$49,248
Avg. net operational profit per year over initial 5 years.
Avg. Daily Rate
$406
Avg. rental income per occupied day over initial 5 years.
Lease Duration
22 yrs
Total term of the property leasehold agreement.
Avg. Occupancy Rate
61.5%
Avg. percentage villa is occupied by paying guests over initial 5 years.
Cumulative Cash Flow — Main Strategy (22 years)
Seasonality Analysis
Monthly performance based on the assigned seasonality profile. The chart displays the 5-year average for revenue, costs, and occupancy rate.
Seasonality Profile
JanM
FebM
MarL
AprL
MayM
JunH
JulOwn
AugOwn
SepM
OctL
NovL
DecH
High (H) – High season rate & occupancy
Mid (M) – Average of high & low season
Low (L) – Low season rate & occupancy
Owner (Own) – Owner occupied, $0 revenue
Monthly Financial Breakdown — 5-Year Average
Annual Financial Performance
Revenue, operational costs, and net profit for the main strategy (first 10 years). Additional expenditure costs impact cash flow directly, not these operational figures.
Avg. Yearly Revenue
$91,201
Average total revenue per year from operations in first 5 years.
Cost / Revenue
46.0%
Total % from revenue for management, utilities/maint., taxes, and OTA fees.
Avg. Yearly Cost
$41,952
Average total operational costs per year in first 5 years.
Revenue vs Costs vs Net Profit — First 10 Years
| Year | Revenue | Op. Costs | Op. Net Profit |
Add. Cost | Cash Flow (Net) | Avg. Occ. |
| 1 |
$87,158 |
$40,093 |
$47,065 |
— |
−$577,935 |
64.6% |
| 2 |
$83,075 |
$38,215 |
$44,861 |
— |
−$533,074 |
64.4% |
| 3 |
$99,358 |
$45,705 |
$53,653 |
— |
−$479,421 |
64.1% |
| 4 |
$99,555 |
$45,795 |
$53,760 |
— |
−$425,661 |
55.7% |
| 5 |
$86,858 |
$39,955 |
$46,904 |
— |
−$378,758 |
58.6% |
| 6 |
$99,523 |
$45,781 |
$53,743 |
— |
−$325,015 |
57.9% |
| 7 |
$100,529 |
$46,243 |
$54,286 |
— |
−$270,730 |
60.6% |
| 8 |
$91,524 |
$42,101 |
$49,423 |
— |
−$221,306 |
61.1% |
| 9 |
$107,971 |
$49,667 |
$58,304 |
— |
−$163,002 |
64.2% |
| 10 |
$98,678 |
$45,392 |
$53,286 |
$6,250 |
−$115,966 |
64.1% |
| Showing 10 of 22 years. |
Scenario Analysis
A stress test comparing the "Average case" against potential "Best case" and "Worst case" market conditions, illustrating the range of potential outcomes for your capital.
Worst Case
Avg. Daily Rate$369
Avg. Occupancy53.1%
Est. Payback14.8 yrs
5-yr Net Yield6.7%
Average Case
Avg. Daily Rate$409
Avg. Occupancy61.5%
Est. Payback11.9 yrs
5-yr Net Yield8.4%
Best Case
Avg. Daily Rate$442
Avg. Occupancy69.6%
Est. Payback10.0 yrs
5-yr Net Yield10.0%
Cumulative Cash Flow Comparison — All Scenarios (22 years)
Alternative Strategy: Operate for 5 Years and Sell
This scenario explores operating the villa for 5 years and then selling it as an ongoing rental business. The resale value is estimated based on average operational net profit of the first 5 years, a 10× multiplier, and adjusted for remaining lease years. A 10% sales tax is applied to the gross resale value. This calculation does not take into account market growth but accounts for asset depreciation due to the nature of leasehold contracts.
Note on seasonality: To reflect true investment potential for a prospective buyer, this strategy assumes the property is rented full-time for the entire year (no owner occupation). It uses a standard Bali seasonality profile: High (Jun, Jul, Aug, Dec), Mid (Jan, Feb, May, Sep), and Low (Mar, Apr, Oct, Nov).
| Year | Revenue | Op. Costs | Op. Net Profit | Add. Cost | Cash Flow (Strategy) |
|---|
| 1 |
$107,588 |
$49,491 |
$58,098 |
— |
−$566,902 |
| 2 |
$109,740 |
$50,480 |
$59,260 |
— |
−$507,643 |
| 3 |
$111,935 |
$51,490 |
$60,445 |
— |
−$447,198 |
| 4 |
$114,174 |
$52,520 |
$61,654 |
— |
−$385,544 |
| 5 |
$116,457 |
$53,570 |
$62,887 |
— |
$97,874 (incl. net resale) |
Est. Sale Price
$467,257
Based on avg. 5-yr net profit × 10 multiplier, adjusted for remaining lease. Net to seller after 10% tax: $420,531
Strategy ROI
15.7%
Total return on investment (incl. additional costs) after 5 years operations & net resale.
Strategy Net Profit
$97,874
Total net profit of this 5-year strategy, after all costs & net resale.
Additional Costs / Capital Expenditures
Financial impact of planned additional costs or capital expenditures beyond the property price (e.g., lawyer fees, company setup), renovations, or extraordinary maintenance.
Total Additional Costs
$6,250
Sum of all planned additional cost/expenditure events.
Total Capital Invested
$631,250
Initial property price plus total additional costs/expenditures.
Planned Events
1
Number of separate cost/expenditure events planned.
| Year | Description | Cost (USD) | Covered by Prior Profit? | Op. Net Profit | Net Cash Flow |
|---|
| 10 |
Notary fee (acquisition) |
$6,250 |
Yes |
$53,286 |
−$115,966 |
Scenario Input Parameters
Core assumptions used to generate all financial projections in this report.
Core Property & Operations
Property price$625,000
Lease years22 years
Daily rate (high)$550
Daily rate (low)$300
Occupancy (high)85.0%
Occupancy (low)65.0%
Cost Structure
Management fee15.0%
Utilities & maintenance10.0%
Taxes11.0%
OTA fees10.0%
Total cost ratio46.0%
Growth & Market Dynamics
Annual inflationActive (2.0%)
Occupancy fluctuationActive (±10%)
1st year revenue penalty10.0%
Annual base growth trend2.0%
Max random fluctuation10.0%
5-Year Resale Strategy
Resale strategyActive
Resale multiplier10× Avg. 5-yr Net Profit
Sale tax on resale10.0%
Agency commissionInactive
Important considerations: Financial projections by The Bali Homes use inputs from market analysis and advisor experience. Real-world performance can be influenced by factors not explicitly modeled (location, management, economic changes, etc.). This report aims for a realistic, slightly pessimistic view to support critical decision-making. Discuss these projections with your The Bali Homes agent for tailored advice on your investment goals.
Investment Yield Report
