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Villanomics
Singapore
เข้าร่วมเมื่อ 24 ธ.ค. 2022
Vacation Villas can look beautiful and luxurious, often they instil the desire to own one. However, if the financial aspects are important to you and you want the villa to be a lucrative investment, there is more that counts than that the property looks nice and that you would like to stay there.
Most of the information you will see about the financial returns on your investment will come from sales agents and they are clearly subject to conflicting interests and are not calculated based on your perspective as an investor.
Real Estate investments are not easy and while there are great deals out there, there are risks involved that you should understand and there are also lots of bad offers in the market. You need to evaluate the offers very carefully and be prepared to walk away.
With the channel Villanomics, I publish videos that are entertaining, but also give you the knowledge and insights to navigate the world of real estate investments.
Most of the information you will see about the financial returns on your investment will come from sales agents and they are clearly subject to conflicting interests and are not calculated based on your perspective as an investor.
Real Estate investments are not easy and while there are great deals out there, there are risks involved that you should understand and there are also lots of bad offers in the market. You need to evaluate the offers very carefully and be prepared to walk away.
With the channel Villanomics, I publish videos that are entertaining, but also give you the knowledge and insights to navigate the world of real estate investments.
My townhouse in Canggu - first 3 month rental: Occupancy, rates, profit - How did it go?
I have built a small villa in Canggu, Bali and it has been on the rental market now for 3 months
In this video, I review the first months of operations of the villa - bookings, revenue, expenses and profit. How much cash flow did the villa generate, how profitable is a real estate investment in Bali really?
#balivilla, #villa, #investment, #property, #canggu , #cangguproperty , #townhouse, #apartment , #airbnb , #investmentanalysis , #investmentreview , #investmentreturns
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#cangguvilla , #VillanomicsMagic#RealEstateRevelation#UbudPropertyProspects#WealthBuildingWisdom#InvestmentGurus#ViralRealEstate#SmartInvestingTips#PropertyAnalysis101#InvestmentStrategies#UbudRealEstateTrends#VillanomicsAdventure#RealEstateMastery#InvestmentMagic#ProfitableProperties#ViralWealthJourney#VillanomicsMasterclass#UnlockingUbudRiches#PropertyProsperity#RealEstateWinningMoves#UbudDreamInvestment#VillanomicsRevolution#InvestmentSuccessTips#WealthBuildingStrategies#RealEstateGenius#UbudInvestmentAdventure#VillanomicsWealthWave#ProfitablePropertyHacks#InvestmentMasters#VillanomicsMagicTouch#UbudPropertyRiches#RealEstateViralSuccessUbudInvestment Villanomics RealEstateAnalysis
PropertyInvestment InvestmentTips WealthBuilding
RealEstateInsights VillanomicsAnalysis UbudProperty InvestmentStrategy RealEstateSuccess FinancialFreedom,PropertyProspects
In this video, I review the first months of operations of the villa - bookings, revenue, expenses and profit. How much cash flow did the villa generate, how profitable is a real estate investment in Bali really?
#balivilla, #villa, #investment, #property, #canggu , #cangguproperty , #townhouse, #apartment , #airbnb , #investmentanalysis , #investmentreview , #investmentreturns
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#cangguvilla , #VillanomicsMagic#RealEstateRevelation#UbudPropertyProspects#WealthBuildingWisdom#InvestmentGurus#ViralRealEstate#SmartInvestingTips#PropertyAnalysis101#InvestmentStrategies#UbudRealEstateTrends#VillanomicsAdventure#RealEstateMastery#InvestmentMagic#ProfitableProperties#ViralWealthJourney#VillanomicsMasterclass#UnlockingUbudRiches#PropertyProsperity#RealEstateWinningMoves#UbudDreamInvestment#VillanomicsRevolution#InvestmentSuccessTips#WealthBuildingStrategies#RealEstateGenius#UbudInvestmentAdventure#VillanomicsWealthWave#ProfitablePropertyHacks#InvestmentMasters#VillanomicsMagicTouch#UbudPropertyRiches#RealEstateViralSuccessUbudInvestment Villanomics RealEstateAnalysis
PropertyInvestment InvestmentTips WealthBuilding
RealEstateInsights VillanomicsAnalysis UbudProperty InvestmentStrategy RealEstateSuccess FinancialFreedom,PropertyProspects
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This villa is popular, but how profitable is it?
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In this video, I estimate the profitability of a newly built villa in Canggu, Bali. The villa is new on the market, but already fully booked on the short-term rental market. I calculate the expected revenue, expenses and profit, the investment yield and evaluate if it will be a lucrative investment. #balivilla, #villa, #investment, #property, #canggu, #townhouse In this Title - Villa in Bali (3...
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Canggu is a hip beach town in Bali. It has been growing quickly over the last year, with beach clubs, restaurants, cafe opening up and making it a lively place. It offers a unique blend of beach life and urban amenities, giving it a high popularity among tourists from all over the world. In this video, I introduce Canggu to potential tourists and real estate investors who want to get to know Ca...
How does inflation impact real estate investments?
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Real estate investments have always been stated as a hedge against inflation. In this video, I explain the impact of inflation on real estate investments under leasehold that are used as short term rental. #balivilla, #villa, #investment, #property, #canggu, #townhouse #inflation In this Title - Understand the impact of inflation on real estate investments with Villanomics "Embark on a captivat...
How to negotiate the contract for your real estate investment?
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In this video, I analyse an investment proposal of a townhouse in Canggu, Bali. The property comes with a 28 years leasehold, furnished and will be ready to host guests on a short-term rental basis. Construction is nearly complete and it will soon generate return on the investment. I calculate the expected revenue, expenses and profit, the investment yield and evaluate if it will be a lucrative...
Ubud, Bali: Area Introduction
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So 20% ROI is fake promise? Even 10% is not there?
Do you only pay 10% taxes on EBT, or are there other taxes that you pay?
wow okay, would have expected a lot better for a good area in canggu
Thank you so much for being so transparent! I truly truly appreciate it. I have been orienting what business to start and just can feel it in my gut that now is the time for me after contemplating it for years. I have a love for real estate and thought this might be it, but now I am not too sure. Thank you for the reality check, this just means an redirection. Your approach is very finance like and with my experience in that field for years, I got to grasp the concept of this quite easily in your video so I once again thank you for the explanations you give and please keep up the good work! May you have good luck and success in your future endeavors. And if we ever come to Bali (we wanted to come for a holiday soon either way), would love to meet you in person. You truly inspire me :)
Wish I saw this video 4yrs ago!Thanks for sharing!
🤣
Wow!Great video!love your transparency!THINK I WOULD BUILD A TREE HOUSE OUT BACK TILL IT WAS PAYED OFF!THANKS FOR SHARING!GOT MY FOLLOW!
Super interesting. Thanks a lot. Love the idea that the trip starts at the airport.
Thanks, great video! Have you already calculated how many years you would need in order to return your 200 000 $ you spent on this investment? Also, what is the solution against mold in Bali ? Do your properties often suffer from it in rainy season? Thx 👍
love your content, want to know if 219k for a 2 bedroom in pererenan close to obsidian is a good buy?
Well, depends also on the size and standard. But the location is a bit further out and the price doesn't look cheap on a first look. So it better be very very nice!
@@villanomics thanks for you reply, it is very nice but i am looking at it in terms of ROI potential.
Could you do a video for investment in 2025 for villa, apartment or land for leasehold. thanks
Thank you, I will! More content coming up.
@ visiting Bali November 10-27 doing a DJ set and vacationing. Like to connect. I have a digital products and service agency for hospitality and entertainment.
@@djWARRIOR I am in Bali until 10th, so it won't work out in person. But feel free to send me an email to connect.
@ gotcha
If you can get to 300 days occupancy per year you will be fine. I think you should be able to reach 10% minimum roi.
Occupancy alone can be misleading, high occupancy often comes at the price of low rates or high expenses. But when you look at ROI, you are right. I prefer to look at profitability.
great video
Thank you so much!
Hello really enjoy your videos! I’m currently building a 4 bedroom villa in Pererenan, but I’m wondering if there is any license required to operate it as a short term rental, would appreciate ur insight on this
Send me a mail and I can point out a couple of things on this topic. Thanks!
@@villanomicsthanks for your reply, can you please share again the email here? Cant find it from the channel info
@ please login to TH-cam and you find it in the channel page
@@villanomicsthere is no email mentioned in the description of the channel, can you please double check?
Are you logged in?
Thank you for your sharing bro🎉
My pleasure! 🎉
Things have changed recently in Bali regarding foreign ownership of land. Buying freehold is now possible, but you must meet certain criteria, monetary criteria. As long as you are spending more than US500k (it might be less) you can have your name on the certificate. I dont know more than this but look more into it rather than writing off the idea as it has changed now.
Thanks for sharing that, I will look into it!
@@villanomics Thank you for all your videos, You have been so helpful in my planning the next few years. I really appreciate the effort you put into doing this.
Great video, do you still advise on investing in a villa in Perrerenan or Ubud?
I would be very careful these days in Bali, too much construction is going on, it doesn't seem to be on a sustainable level. Escpecially in the areas you mention.
@@villanomics ah thank you for getting back, maybe areas without the hype might be worth looking into
if i wanted to do something in real estate, what would you advise ?
Thanks for the video, C3PO
You're welcome, R2!
very usefull video
I’m glad you found it useful!
Such a great video. Thank you. 🙏🏼
You are very welcome!
He forgot to mention its illegal for a foreigner to run short term villa accommodation as a foreigner cannot hold the pondok wisata licence, and for a business to run in Indonesia for short term rental it or owner who is in the end receiving the income and paying the tax must be the holder of the licence. if he is running it through an agency, this is called a nominee and is also illegal and hopefully will be shut down in the upcoming moratorium from Minister Luhut in the next week or so.
Seems like a lot of work and stress for 8%… USD bonds paying 5%, IDR bonds paying 7%, SP500 up 21% YTD…
I agree, if you see it as work, it is probably not worth it. If you enjoy it or see the time spent in your villa as additional value, it makes more sense to own a villa.
I’ve just come back from Bali, spent a week on Lombock as well. Bali is absolutely awful. If you want a swimming pool villa and never leave it, order western food it just might, might, might might, be a place for sun ☀ and fun in the pool, but that is all. Way way too much rubbish, traffic is a nightmare , noise no matter where you are, food dreadful, not so cheap in reality. Ridiculously high prices for western food in a western supermarket, a must buy if you don’t want to stave to death. Rip offs, paying to park you moped everywhere, ( in the hands of the local mafia of course) can’t really go swimming and the way they treat animals ( they cut dogs throats as a ‚sacrifice‘ when opening a new temple , YES THEY DO THIS!) The plastic rubbish is EVEYWHERE, it’s mind blowing. It’s filthy! And then to even contemplate buying/building a villa to live in this shit would be MADNESS. I know personally of a man who paid up front for material for his villas and they did a runner to the tune of 40,000 Euro 💶. Police not interested of course, probably paid in advance not to be. Yes, one can argue build with a reputable builder, but that isn’t a safe as seems. Corrupt beyond corruption. Too many projects half finished, instergramm pictures will only show you what you need to see to be influenced. Surprised nobody has made a film to show the REAL side of Bali. Lombock nearly no traffic, but full of Muslims who hate dogs, resulting in starving dogs. They throw puppies into the jungle to stave to death, I experienced this personally. Dreadful dreadful dreadful experience. Prayers will wake you up almost everywhere, and if you are located close to the beach 🏖 the crashing waves will sound like your sitting next to a jet engine on the plane which brought you to Indonesia 🇮🇩. Restaurants are good in Kuta in Lombock , thank you 🙏 for saving me! A bit long winded , and the general feeling , NEVER EVER AGAIN! Buying there madness, visiting there a complete waste of money. Thailand much much better.
Which Part of Thailand?
How much did you give to the Balinese people ? Or are you just there to make money from their land ?
Interesting question. I would estimate that around 70% stay in the local economy. Of course community donations are part of it, but most of it is salaries of local staff, services from local companies, taxes and naturally the cost of the land as well. The part that leaves Bali is booking fees (e.g. airbnb) and cost of capital and depreciation of the construction. The local economy around tourism is huge, extraction of profits is very small in comparison.
To me real estate in Bali at the moment looks like a bubble....thoughts??
Bubble is a big word and there are different types of bubbles. It does feel like there is too much construction ongoing. Both with regards to future demand and to what would be healthy to the local ecosystem. Personally, I appreciate when the government steps in and restricts construction, I believe it is for the good of everyone involved.
Hey mate love the video,, do you have an email or means to contact just have a few questions I would like to run by you if possible, thanks
Good insight 👌🏽
Glad you think so!
You should also tell people to get the lease you are talking about is only available to persons who are domiciled in Indonesia. Meaning you need a permanent visa kitas to lease land in indonesia. And yes lol Notories and even lawyers will do you up a lease.
Thank you for your comment! I agree, most of my viewers would like to learn more about Indonesian immigration laws and the regulations relevant for foreign investors. Are you an expert in this field? Maybe we can have a video interview and I make a video out of it? Please send me a mail!
What kitas do you have ?
Hi, any chance to contact you for some specific questions regarding the construction of your villa? I’ll be building next year as well and I’m curious to learn from the experience that you made. Thanks for the informative video 👍🏻😉
Hi, you can look up my email on the channel page and send me a message. Thanks
@@villanomics Hi, thanks for the quick response. Maybe it’s because I’m on the TH-cam app or mobile browser, but I can’t seem to find your email on the channel site?
I believe you need to be logged in with TH-cam to see it.
225k for this maybe for money laundering? 😂
Thank you for sharing. Appreciated it.
My pleasure!
Only can lost money and never can own 100% land so spend that money for rent/lease hehehehe
Informative, honest and very interesting. The very best of luck with it, I would be really interested to see how this changes year on year and I'd like to see what issues you come up against.
Thank you, I will update soon
Owning the land is paramount. Buildings depreciate land appreciates.
Most of these properties are leasehold. Foreigners cannot own the land.
Hope you have the appropriate kitas or kitap before even considering Indonesia
short term rental is illegal for foreigner in Indonesia but he seems to ignore that.
@@nisnga147 And Notaries quite happy to do up a lease. Immigration just started a social media department to monitor social media. Seen a video of a guy and his wife neither Indonesian. In Ubud actually building their own villa. Doing the work of the Indonesian like concreting, ceramic, and wood work. Lol
@@nisnga147You sure about that? Sooo many villas in Bali are foreign owned.
@@theJasonLee yes 100% sure. Feel free to inform me how a foreigner or foreign owned PMA can legally (not greyzone, or illegally) run a short term villa rental on a single villa - or indeed anything under 40are in size - as this is what is required to obtain a small hotel licence. You cant...because ...well it cant be done. However shills like this guy will tell you otherwise - and they need deporting for spreading false information while also running illegal businesses.
Nice break down, I’m currently building in Canggu, and have designed the project where it could mostly be disassembled and relocate it or sold as materials in 25 years to minimize the depreciation and wrote it in the contract. The materials chosen are mostly steel and other metals which could actually increase in price over time, and the rest stone, and cement boards
Sounds great! Would love to hear more about it.
@@villanomics building with steel is not exactly new, so the whole frame is steel even the support studs that you screw the cement boards into are steel, which is really a commercial standard. For the utility is best planned strategically where sections of the building are left as conduits, and that is easier for maintenance and upgrades also
Hi, could you help me understand? How do I sell a leasehold property after its value of the property increases, say in five years from the purchase date and how would that work for a for a foreigner, and what are the pros and cons. Thanks in advance.
@@djWARRIOR the value of the land might have increased but not the lease because that has value based on the years left and the conditions of the property at the time of sale, so you will only make profit if the increase of value can over compensate the years left
@@OwnGrid gotcha thank you
Nice sir. I had send an email to you. Hope you can have a look
thanks so much for this very grounded video. I've been watching all of your Bali villa video series, and I've learned much from them. Bali is very alluring in terms of the non-tangible aspects (eg. dream lifestyle, trendy...etc), and its so easy to get caught up in this charm. So, I appreciate the "reality check" in your videos, especially when viewing a Bali investment vis-a-vis alternative and conventional routes. The multi-factorial approach to your analysis is also something I wish others adopt, if anything, to help cool things down to a more sustainable and rational level. The folks running Bali are being outpaced by development, and infrastructure (eg. waste disposal, water supply, roads, electricity...etc) needs time to catch up, or better still, be planned for, to accommodate all this growth. I hope to see a video from you in future about how you view these aspects, and your views (as a foreign investor). For example, would it be fair to say that many investors are only looking at a return horizon of 5-10 years, and exit the market afterwards? ie. leave the Bali market entirely. Or is it the case that serious investors, such as yourself, also have a longer term goal of spending most of your life in Bali. Also, the prospect of Bali's growing middle class and affluence weighing in for the longer term (5-10 years). Thank you again for your enlightening videos, and hope that you continue to make many more!🙏😎
Thank you so much for your comment! I feel that the planned holding duration of investors has decreased over the last years and I find it worrisome. The extreme case is people buying off-plan with the intention to flip after construction. There is no long-term interest or even evaluation of the sustainability of the project. Sales has also become way more aggressive over the last years and construction has increased.
nice
Thanks
There is something i don't understand, for example you buy a villa for 200,000 and has a lease for 25 years. If the original owner doesnt want to extend and wants his land back do you get your 200,000 back? Im not sure how the whole lease things works when the owner wants his land back. In theory you pay for a rental business for 25 years?
Thank you for your comment! Yes, with leasehold, you pay for the right to use the land for a certain duration. After that, it goes back to the owner, you do not get a compensation for the construction you built on the land.
hey man, awesome vids. i have a few questions id like to ask you about rental investments if you dont mind. do you have an email i could reach you at?
Hi, sure! You find my email on the channel page when you are logged in to TH-cam.
@@villanomics thanks, i'll get my questions organised and ready for you :)
Your contenr is always brilliant.
I appreciate that!
And still no government infrastructure .....traffic, water, pollution is at its worst.
They are working on it :-)
Thanks for an informative and honest video. I don't live in Bali and am thinking of getting an off plan villa. Do you think it's risky to have one if I don't live there? And can you recommend any villa managers?
Hi, there are always risks involved, for sure. Whether you live in Bali or not. As for villa manager, it depends on the area. And as far as I can see, no villa manager is perfect, so the decision will not be easy.
I have a few things that your viewers should be aware of. 1. You must look at the sales price more carefully, it is lower outside the peak periods, which is the majority of the year. To maintain the sort of occupancy you are assuming you will have to be constantly adjusting the prices. This means you may not be able to achieve even near $175 pn for most of the year. If the villa is run by a third-party they will likely not put in the effort in to achieve this. 2. The running cost can vary massively depending on who is managing the property and what their role is. From the owner running everything, to full management can change the costs considerably. You will not have costs of 50% if the villa is fully managed for example. 3. One crucial part of costs that is often overlooked and most likely underestimated is maintenance. Building standards in Bali are generally not high and the climate is brutal on buildings, A brand new beautiful villa can be a leaking, moldy and ugly mess in a little as 1 or two years, I have seen this many times, if maintenance is not carried out properly. While labour is cheaper here, this item can turn out to be one of, if not the biggest expense. It is worse as you may have to black out rental for serious problems. 4. In Asia generally if the owner is not around standards will likely slip and dodgy practices take place. If you are in this situation, you must make allowance in your revenue and cost calculations. Having a reputable company or trusted person may help but they will likely be more expensive. 5. Tax on villa sales is I believe 10%, booking company commissions can be 15-20%. To get higher exposure on sites like Booking.com you should budget for the upper end of this. Achieving a 50% cost base is unlikely if you have to pay for villa management and budget for maintenance correctly. 6. There will also be hidden costs, even with the most extensive research. You may well not have permits, rules change and there will be local costs you have to make provision for. This list is not extensive but covers a few of the more important points. You can have a good business from villa rental in Bali, especially if you plan to stay in your villa during the year. However, for an investor who has no knowledge of this business in Bali, is not planning to run the operation, or oversee it closely, would struggle to maintain the sales and cost levels you are suggesting and reach those levels of occupancy. I hope this is helpful, my wife and have run a successful villa rental while living onsite for well over a decade in the Canggu area, from a time where Batu Bolong and Echo beach was empty compared to today. So I can comment from experience and from mistakes made and observed.
Really interesting. Have you or will you do an analysis of Nuannu?
Hi Villanomics, thanks for the great content you make. I also want to buy a villa in Bali and rent it out. Which property management to you use and have you formed a PT PMA? Thank you.
Hello! I’d like to contact you directly but I can’t find your email. I have a few questions because I have a quite particular, and probably advantageous situation to build villas in Bali.
Hi, login to TH-cam and look up my email on the channel page. Thanks!
Thank you for the video, very interesting because have thought of that region. Right now my house in Spain in a touristic beach village that i rent out gets me 45,000 a year at 85% occupancy. I could rent it out close to 100% but i have to be there myself to do maintenance and improvements. I still have a mortgage on it so i pay interest on that thats why my expenses are a little higher still, at 20,000 a year. I bought it for 300 and spent 200 on reforms. So im getting less than 5%. BUT i get 15% of the year a free stay, which is a plus, although im working during that time but that also increases the value of the property. But its “freehold” ofcourse, and the value of the property went up 70% in ten years. And because you rent it out the property is always in excellent condition because every issue will be solved quickly and to the better. If you add that, i get very close to 10% a year on the investment. BUT all the work, all the energy, all the stress by having people in your house, i would still choose to get 6, 7 or 8 percent with stocks/bonds or whatever there is. It doesnt give you any work, stress, disturbing phone calls when your relaxing or on a holiday etc etc. But i continued to do it because i plan to live in this house when i get older, and this way i was able to make it exactly how i wanted it to be. But i would never recommend this kind of investing if its just an investment, and not the house you are planning to live in later on in life.
Good breakdown and very informative. In my 14 years of working in Indonesia/Bali you'll def to adjust your expectations to account for some absolutely terrible years. Volcanos/Earthquakes/Foot in mouth disease etc. If I can get 8% growth in the stock market and retain my capital after 25 years I think you'll need to hit that 9-10% range to justify the risk. Massive supply coming online too. Also put 5-10% away on the side for suprises that you will almost certainly have in the form of certain government checks
This really cannot be understated. We were in Bali last year, we both feel in love with the island and toured some properties. The one thing the sales people kept talking about was short term rentals and the ROI. ROI is great when the supply is limited, but with the number of villas coming on line the supply is going to cause a massive glut in the market, forcing prices down for those rentals. Also, they failed to understand, we are looking at a retirement home, having a bunch of AirBnB users as our "neighbors" is not what we are looking for.