Laksmana Road / Oberoi Road in Seminyak is a very sought after area for holiday villas. Therefore, very good rental prices and occupancy rates can be obtained.

Rental rates:

The 3 bedroom villas now have published rates of USD 250 per day in the low season and USD 295 per day in the high season.  Usual marketing commission to agents in Bali is 20%.

Investment payback

Estimated rental return is 10% and the investment could be fully paid back in 10 years, depending on owner occupancy. With a 50 year lease (25+25), the investor has then many remaining years of free cash flows.

Furthermore, if the investor needs to sell the property then he is likely to enjoy good capital gains. And selling in this popular area would not take long. 

With the fully legal ownership form of leasing, this can therefore be considered an outstanding investment.

Running costs.

The estimated monthly running costs for a 3 bedroom villa is as follows:

Running costs can be higher if it is agreed with the property manager to provide a very high service level to customers.

Property Management.

There are many established and professional property managers in Bali and the owners are free to make any arrangement they want for their villas. Typical management fees are USD 100-500 per month and 10% of rental income.

Note that at Villa Bugis the only obligation for the owner is to pay a minimal cost towards the development's security and road maintenance.  

Villa Bugis offers flexible property management to the owners at 10% of rental income and without any fixed fees.  The following services are provided by Villa Bugis:

-          24hour security.

-          Housekeeping, laundry, garden and pool maintenance, repairs and periodic maintenance.

-    Insurance, payment of  tax and local contributions.

-          Rental services.

-          Various optional services for the guests, such as driver and cook services.