Investment Highlights
What follows are the results of the projections made by The Bali Homes team. We use real-world data from OTA platforms and our own experience and understanding of the market to find properties with similar characteristics and analyse their performance to use as a benchmark.
🧠Insider tip: A leasehold villa yielding above 10% net is performing above market average. 10% is typical — below that, it's underperforming.
Payback Period
10.8 yrs
Time to recover initial investment.
Yearly Net Yield
9.2%
Average annual net return.
Yearly Net Income
$14,823
Average net operational profit.
Average Daily Rate
$116
Average rental revenue per day (ADR).
Lease Duration
22 yrs
Total lease term excluding extensions.
Avg. Occupancy Rate
70.2%
Average occupancy rate.
The following chart shows your cumulative cash flow over time and your break-even point. Our model accounts for slight inflation over time and any assumption beyond a 5–10 year time frame is to be considered purely indicative.
🧠Insider tip: A payback period of 7–10 years is what, in most cases, is more realistic. Be wary of market operators claiming 4–5 year payback periods and 15–20%+ ROI consistently — it is unrealistic.
Cumulative Cash Flow — Main Strategy (22 years)
Seasonality Analysis
The following is a calendar and related chart that shows fluctuations in revenue during the year due to the seasonality of Bali as a destination for tourists. If we made this report custom for you and you occupy your villa during a specific time period, the potential revenue for that month is subtracted and the results are influenced.
Seasonality Profile
JanM
FebM
MarL
AprL
MayM
JunH
JulH
AugH
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 profits for this villa.
Avg. Yearly Revenue
$29,646
Average total revenue per year from operations in first 5 years.
Cost / Revenue
50.0%
Total % from revenue for management, utilities/maint., taxes, and OTA fees.
Avg. Yearly Cost
$14,823
Average total operational costs per year in first 5 years.
Revenue vs Costs vs Net Profit
Avg. Annual Cost Breakdown — First 5 Years
| Expense |
Avg. / Year |
% of Rev. |
| Management Fee |
$4,447 |
15.0% |
| Utilities & Maintenance |
$2,965 |
10.0% |
| Taxes |
$2,965 |
10.0% |
| OTA Fees |
$4,447 |
15.0% |
| Total Operating Costs |
$14,823 |
50.0% |
🧠
Insider tip: In addition to the costs above, consider $100–200 USD per year for Banjar tax and trash collection. These vary depending on which village your villa is located in and, like every other operational cost, are handled by the management company.
The following table shows your projected cash flow over time up to 10 years, along with the average occupancy rate, which fluctuates over time to simulate evolving seasons and thus a more realistic forecast.
| Year | Revenue | Op. Costs | Op. Net Profit |
Add. Cost | Cash Flow (Net) | Avg. Occ. |
| 1 |
$28,161 |
$14,081 |
$14,081 |
— |
−$160,919 |
73.7% |
| 2 |
$28,952 |
$14,476 |
$14,476 |
— |
−$146,443 |
65.1% |
| 3 |
$30,746 |
$15,373 |
$15,373 |
— |
−$131,070 |
69.9% |
| 4 |
$29,743 |
$14,871 |
$14,871 |
— |
−$116,199 |
71.9% |
| 5 |
$30,626 |
$15,313 |
$15,313 |
— |
−$100,886 |
70.5% |
| 6 |
$33,726 |
$16,863 |
$16,863 |
— |
−$84,023 |
71.7% |
| 7 |
$33,217 |
$16,608 |
$16,608 |
— |
−$67,415 |
68.7% |
| 8 |
$34,342 |
$17,171 |
$17,171 |
— |
−$50,244 |
65.1% |
| 9 |
$34,934 |
$17,467 |
$17,467 |
— |
−$32,777 |
66.7% |
| 10 |
$35,622 |
$17,811 |
$17,811 |
— |
−$14,966 |
69.0% |
| Showing 10 of 22 years. |
Scenario Analysis
The following is the stress test for this villa. It shows three different cases for your villa venture, aiming to illustrate various market conditions and potential outcomes of your investment.
Worst Case
Avg. daily rate$104
Avg. Occupancy60.3%
Est. Payback13.7 yrs
5-yr Net Yield7.3%
Average Case
Avg. daily rate$116
Avg. Occupancy70.2%
Est. Payback10.8 yrs
5-yr Net Yield9.2%
Best Case
Avg. daily rate$127
Avg. Occupancy80.2%
Est. Payback8.8 yrs
5-yr Net Yield11.3%
🧠Insider tip: If your worst case yields between 8–10%, your property still generates more income than many traditional real estate markets worldwide.
The following chart plots the three cases (worst, average and best) and aims to provide an idea of your operational band, where the worst is the bottom (red) and the green is the ceiling (best case). This is realistically the range in which you will operate over time.
🧠Insider tip: The management company or operator you choose will make the real difference. A well-managed, poorly designed property can be a gold mine in the right hands — and the opposite is equally true.
Cumulative Cash Flow Comparison
Scenario Input Parameters
Core assumptions used to generate all financial projections in this report.
Core Property & Operations
Property price$175,000
Lease years22 years
Daily rate (high)$135
Daily rate (low)$90
Occupancy (high)75.0%
Occupancy (low)66.0%
Cost Structure
Management fee15.0%
Utilities & maintenance10.0%
Taxes10.0%
OTA fees15.0%
Total cost ratio50.0%
Growth & Market Dynamics
Annual inflationActive (2.0%)
Occupancy fluctuationActive (±10%)
1st year revenue penalty8.0%
Annual base growth trend2.0%
Max random fluctuation10.0%
5-Year Resale Strategy
Resale strategyInactive
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.
