This is how much my villa in Bali made in the first year: Investment review

[@TulyDebnath]

I have seen many polls but this is the first time I have seen such a beautiful poll.

[@villanomics]

thanks

[@andysud9661]

Thanks for this video. Unlike other channels you remind us that with a leasehold the investment value has to be depreciated, which gives a more accurate calculation of the yield.

[@villanomics]

Absolutely crucial! Most sales people will hide that and talk about "income".

[@RodneyPatel-vj9rb]

@@villanomics I couldn't agree more. You hear from agents of 15%-30% return but they don't take into account the cost of the leasehold/depreciation.

[@albertusanoniem9043]

Does this leasehold means you lose the entire house after the leasehold period ends and you dont renew the lease? Because that means the government can basically take your property after the leasehold ends because of changing politics towards foreigners for example, or because they just want more money from foreigners as they will start to see them as a great milking cow. Maybe not likely right now, but Bali is also an Islamic region and history has proven in other Islamic countries what can happen with foreigners especially of other religions when the government changes due to civil unrest/protest or just by democratic votes if the population changes by time. Im Dutch and I had ancesters in Indonesia, they lost everything and it quickly became the biggest Islamic country in the entire world and the western freedom has completely gone in some parts of the country. That could also happen to other parts of Indonesia although i must say maybe unlikely, its still a % of risk management to account for in my opinion.

[@dan-in-asia]

Suuuuuuper cool. Very helpful as there were a few things mentioned that I would have never thought of. Also highly appreciate the transparency when it comes to numbers. Not everyone likes to talk about numbers but instead only gives a "too shiny" view. So getting these numbers helps a lot to do my own calculations, manage expectations and overall have a better overall understanding. Thank you 😊

[@villanomics]

Thank you! Glad you found it interesting!

[@NigerianKitchen]

Thanks so much for this breakdown. Really useful. Really appreciate how in depth your analysis is

[@villanomics]

Glad you enjoyed it!

[@yamaha_r159]

Very amazing and very helpfully video thanks for shering

[@villanomics]

Thanks for visiting

[@bdcrickethighlights8131]

amazing video bro...... thanks.

[@villanomics]

Most welcome

[@md.Islam6390]

Very important and helpfully video about Villa in Bali made in the first year.Thank you for share this video.

[@villanomics]

It's my pleasure

[@shamimmiah2775]

Really informative and helpful tutorial . Thanks for shareing this video

[@villanomics]

My pleasure

[@fairytale604]

Really informative and helpful tutorials Thanks for share this video keep it up

[@villanomics]

Thanks for liking

[@andrewsutherland4573]

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

[@lvthud]

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.

[@raselazad8288]

Thanks so much for this breakdown. Really useful. Really appreciate how in depth your analysis is. i like your video.

[@villanomics]

Glad you enjoyed it!

[@emotionukti4736]

Thank you for explaining so beautifully

[@villanomics]

Glad it was helpful!

[@MDjahidHasan-ly1cg]

Thanks so much for this breakdown.Really useful.❤

[@villanomics]

So glad!

[@MostaqueAhammed-qb4mk]

Very good project keep going ❤

[@villanomics]

Thank you, I will

[@mahfuzkhan-qp3uh]

Really amazing video tnx share this video

[@villanomics]

Most welcome

[@SanchayOfficial]

Thank you boss for share the most usefull and inportant villa in bali made in the first year

[@villanomics]

Always welcome

[@mdjulfikarali-ul7ww]

So beautiful God blessed the forever nice reserve ❤❤❤❤❤❤❤❤❤❤❤❤❤

[@villanomics]

You are so kind

[@samisarkar36]

So nice video.I wish everything is good

[@villanomics]

Thanks for visiting

[@PintuDas-e7v]

This is very nice and important but it's a amazing video. ❤🎉❤🎉❤🎉❤🎉❤🎉❤🎉❤

[@villanomics]

🎉

[@wcofficials]

Verry amazing and verry helpfull video 😮😮❤

[@villanomics]

Glad you think so!

[@TimurAbdullaev]

I'm your new fan now. Thank you SO MUCH for such a wonderful breakdown! As someone who's considering investing in Bali, it gave me lots of lessons learned. Best of luck to you and your investments!

[@villanomics]

Thank you very much, Timur! Also to you all the best with your investments!

[@Amintechz]

Thanks for sharing this with us...🎉🎉🎉🎉🎉

[@villanomics]

My pleasure 😊

[@Abir_55ftl9k]

Very important discussion, nice to hear the words❤

[@villanomics]

Glad you enjoyed it

[@Tamim-jt8sb]

Wow this is greatfull video thanks😊😊😊

[@villanomics]

Most welcome 😊

[@g1unitsoldier]

Thank you so much for this detailed breakdown. It’s so so useful!

[@villanomics]

Glad it was helpful!

[@jefffinlay3477]

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!

[@villanomics]

Thank you so much!

[@mustakimhosen-kn9lz]

Thanks for sharing this video

[@villanomics]

My pleasure

[@elsienorback7689]

That’s very common to have a leaking roof with the quick manner they build in Bali. Especially with electrical work.There are no inspections done from outside the construction builders like in Europe, Canada and America.

[@villanomics]

Unfortunately, you are very right with that. Even though rain is common and heavy, construction doesn't deal with it very well.

[@FilmTutorials]

This is so good. Any update on the latest year ? Also any detail on your villa , size location and bedrooms? Would be great for reference. Cheers !

[@villanomics]

Thank you so much! It is a six bedroom villa at the southern end of Ubud, just a few minutes on a scooter to the center.

[@fizahaque]

@@villanomicsthank you for being so open and transparent since we were looking into starting our own air bnb business. I definitely can tell how saturated the market is getting. Awesome video. Saved me the hassle of going through it myself and I wish you the best of luck in your endeavours!

[@aiahkonomanyi6938]

very usefull video

[@villanomics]

I’m glad you found it useful!

[@Life-share.]

Really impressed.❤❤ because his voice is clear and so cool❤.her explanation is super.

[@niloyahmed-xg5yv]

Thanks for share those information 🎉

[@villanomics]

My pleasure

[@sujonteamincomebangla6160]

This is amazing content video bro thanks ❤❤❤❤❤

[@villanomics]

Most welcome 😊

[@Freelancingjobs-j7ey]

Thank you so much for sharing this amazing information, It's really helpful

[@villanomics]

Glad it was helpful!

[@mdnibirhossain3856]

so beautiful video

[@villanomics]

Many many thanks

[@Itcouldbeanydaynow]

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.

[@villanomics]

Thank you, I will update soon

[@priya4200]

I think you are right , thanks for sharing this video

[@villanomics]

Thanks for watching

[@Perve40]

Very important discussion,thank you❤

[@villanomics]

You are so welcome

[@jarinakter6553]

This is very helpful video for everyone

[@villanomics]

thanks

[@karimabdelazim8673]

Good insight 👌🏽

[@villanomics]

Glad you think so!

[@cryptogonzo5184]

Extremely well spoken. You would make a sick James Bond Villan. Just gained a subscriber 👍🏻

[@villanomics]

Haha, thank you very much! :-)

[@Gazi_mh]

Relly amazing 😊

[@iwantan797]

Very nice review and clear explaination

[@villanomics]

Thank you 🙂

[@nicwalshy]

Thanks for the video, C3PO

[@villanomics]

You're welcome, R2!

[@AmitRaj-q1c]

good video and video is best ❤❤

[@villanomics]

Thanks

[@mamun19951]

Wonderful video ❤❤❤❤❤❤

[@villanomics]

Thank you 🤗

[@garrybarnett2135]

Excellent 👌

[@villanomics]

Thank you! Cheers!

[@dhruboislazy]

Lovely insight, thanks ☺♥

[@villanomics]

Glad it was helpful!

[@markp7987]

Thank you for your sharing bro🎉

[@villanomics]

My pleasure! 🎉

[@zubyer5260]

Wow so helped😮😮

[@majbah123]

Wow amazing sir

[@villanomics]

Thanks a lot

[@ElCampion777]

Not bad! 👍🏻👍🏻

[@villanomics]

Thank you!

[@rakib.29]

Nice video❤

[@villanomics]

Thanks 😁

[@HeirloomSeed36]

Thank You straight to the 👉🏾 point. Ur Awesome

[@villanomics]

Thank you so much!

[@Joni2joy]

Nice video brother thish video is very good

[@villanomics]

Thank you so much 😀

[@hridoyneehal]

i want to this type of video again❤️❤️

[@villanomics]

will do

[@dharmasoul7950]

thank you for the video . 🙏

[@villanomics]

You're welcome 😊

[@minthakaw]

What part of Bali is this villa? It really depends on the location in bali

[@wyswygsommer2769]

Are those expenses including staffs, AirBnB fee? Did you hire a villa manager through an agency? What is the cost for villa manager and what services are included?

[@crazybiker7482]

Tnx for this breakdown

[@villanomics]

Any time

[@nabiljaghdour8980]

great video, no bs as most videos we can find on Bali, where is it in Bali exactly ?

[@villanomics]

Thank you! The villa is about 5 minutes south of Ubud center.

[@globalpropertyinvestment]

Hi mate - love your videos, please keep them coming. A few questions - what % is the annual tax due? How much did it cost you to build your villa please - it would be wonderful for you to give a video tour and describe what challenges and learns you encountered? Did you actually film the build process as I think it was be a very interesting series to view? Best of luck with your 2024 rentals!

[@villanomics]

Tax depends on many things, for example where you live. No simple answer to that question, sorry. The villa was in the are of 500k, just as a rough guidance. I will incorporate my learning in my videos ;-)

[@globalpropertyinvestment]

@@villanomics thanks for the reply - look forward to watching your new videos 😀

[@calvinbailey6708]

Hey I’m thinking of moving to Bali and need to make a living was thinking of starting an Airbnb business and find this very helpful. Thank you so much question do you think it’s a good idea to start an Airbnb business pros and cons? Any help would be appreciated.

[@aniqrehmanofficial]

Great video, do you still advise on investing in a villa in Perrerenan or Ubud?

[@villanomics]

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.

[@aniqrehmanofficial]

@@villanomics ah thank you for getting back, maybe areas without the hype might be worth looking into

[@aniqrehmanofficial]

if i wanted to do something in real estate, what would you advise ?

[@K3vvlr]

Amazing analyze, thank you. I was wondering how do you track expenses? You have someone managing villa, doing resupply of toilet paper etc. Do they send you the bills every purchase and you track it in excel or some app?

[@villanomics]

Yes, on a monthly basis, I get a list of all expenses from the accounting. It lists every item but also categorises them so I can see any anomalies and trends.

[@rz9509]

What kitas do you have ?

[@BestBuysReviewed]

please make another villa

[@villanomics]

Thanks, will try

[@airportjunkiee3855]

Hi thank you for sharing such an informative video with us all its much appreciated! I’m not too sure if I heard correct but did you say you built it at the start? As towards the end you said something about depreciation because of the lease so could you explain a bit further as I’m confused a little bit 😅

[@villanomics]

Sure, let me try to clarify. I have built the villa on a plot of land that I leased for about 30 years. After that, the land and the villa will revert back to the freehold owner of the land. Therefore, I depreciate the value of the asset (leasehold and building) over that duration.

[@davidhliasdanu7764]

thank you for your video..its deep analysis ..very usefull ..👍 may i know what items normally sitting in operational expenses .. also appreciate , if you could make the analysis on second year performance 😊 may we consider the performance will be declining in coming yewrs since the villa would need more & more maintenance as its ageing ? thank u

[@villanomics]

Operating expenses are things like electricity, cleaning, laundry, salaries of staff... I will make another video on the second year when it is over and I have the numbers. Can't wait myself to see if it gets better or worse ;-)

[@ousheshharadhun3773]

nice. was much cheaper than buying?

[@villanomics]

Not cheaper than buying. Lower price is not the reason to build vs. buy.

[@jenniferesfandiary]

Thank you for laying out the money part! Who was your builder? I certainly don't want to use them to build me a home!

[@villanomics]

Hi Jennifer, my villa was built by Magnitude. You will recognise their style in many villas in the Ubud area.

[@Saribechara]

Hi, There very helpful video and valuable information, if I may ask, have you used any of the villa management companies to run your villa? or it was a personal effort

[@villanomics]

Thank you! Yes, I am working with one of the larger villa management companies; I am not involved in the operations on a day to day basis.

[@MiguelPimenel]

Very good video. How about the taxes I read is about 20% groos income 😮 plus a local tax

[@villanomics]

Thanks, Miguel! I am not a tax advisor, so I can't comment on those. But taxes depend a lot on your individual circumstances (e.g. where you live), so it is not possible to cover it generically.

[@kimpoindexter1481]

Great video, very informative. Obviously there has to be a management fee, is this accounted for in operating expenses or in the rental income received? How is the villa marketed, airBNB, Agoda, other? Thanks

[@villanomics]

operating expenses and villa management are separate. Operating expenses are things like laundry, electricity, replacing or fixing things, cleaning... Villa management is managing bookings and guests, but also coordination and oversight on operations.

[@allawati]

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?

[@villanomics]

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.

[@nisnga147]

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.

[@mdhaniffakir9566]

❤ Earning vedio ❤

[@villanomics]

ok

[@roybipro640]

Very good earnings plecement than you ❤

[@villanomics]

Yes, thanks

[@lulc4694]

You needed a license to do short term rentals right?

[@Duke-mn2xm]

In all your videos so far, you never mention the tax rate. Is it 10% or 20%. I think it is crucial for us to know because your advices and info are amazing so that i personally think to invest this year. Thanks for your videos

[@villanomics]

Hi Duke, thank you very much! As for taxes, I intentionally avoid talking much about taxes. Income taxes on the profits you make from your investments depend a lot on your personal circumstances, for example where you have your tax residence. So it is not possible to give a generic answer that is correct for everyone.

[@Duke-mn2xm]

@@villanomics Thank you very much for your answer. The country I pay taxes is Hong Kong who has a double tax treaty agreement with Indonesia so I am on 10% after doing my own research. I have two arranged phone calls with agents and the reason I asked you is that i know the agents will not provide the whole truth but what is convenient for them to sell services. Based on your video at the end you had an 8% yield excluding all expenses. Including the taxes a 7% yield is realistic? That’s all i would like to know if possible. A 7% at the end is ok but if less i would be very skeptical for my own investment. Thanks again

[@arqmark]

@@Duke-mn2xm There is a lot of misunderstanding and missinformation here. First, if you are renting a villa in Bali short term you have to pay a 10% PHR (Hotel and Restaurant Tax) from the gross income to the Regional Tax Office. In order to be able to do this, you will need to have a Pondok Wisata (license to rent your villa) which is applied at the moment you apply for your Building License. Then your villa will be asigned a Reginal Tax Identification Number (NPWPD), so you can (and must) report and pay this taxes every month, even if you don´t get any income a certain month. If you are a foreigner, to be legal to operate a villa, you should build a Management Company PT-PMA) to be able to get the revenues, but only after you get an Authorization from your Landlord, who will probably will be the holder of the Building Permit of your villa and of the rental license (Pondok Wisata), as ONLY AN INDONESIAN CITIZEN (not even a company) CAN APPLY FOR THIS PERMIT. Once your company has the authorization from the holder of the Pondok Wisata, you will have to report the incomes through your company by normal accounting methods, by deducting some of the expenses, by amortizing some of the goods you buy, (including the Land and building investments costs) and finally paying the Company Tax every year, which will vary between 0.5% and 25% depending on your total benefits and the total number of years you have been operating. Then, if you want to get the money home to a different country, you will have to pay 20% of the dividends according to Article 26 (PPh Pasal 26) unless there is an agreement between Indonesia and your country to avois Double Taxation, in which case, the 20% can be reduced to the agreed rate between both countries. But for this, you will have to present a Certificate of Tax Residence from your country to the Indonesian National Tax Office. Need to mention that building a company in Bali to manage only one villa it does not make any sense, because of the minimum investment you will need to make and the work and costs associated. The only way to avoid all of this, is to rent Long Term (more than a year). In this case, you sublease your property and sign the agreement at the Notary. The Notary will then cut a 10% of agreed rental payment if you are a legal resident in Indonesia and can show your Indonesian Tax Id (NPWP) or 20% if you are not a legal resident in Indonesia. That´s all. Then you will have your money clean, and everything will be legal. Believe me, there is no other way for a foreigner (resident or not resident) to rent a villa in Indonesia.

[@orrindavies]

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.

[@villanomics]

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.

[@mattbeaver8297]

what about taxes?….isnt it illegal to lease villas as a westerner?

[@villanomics]

You do have to pay taxes on revenue and profit. A complicated topic that I will not cover on my channel. Leasehold is legal, but Freehold is only available to Indonesian citizens.

[@Kembali-1607]

It's legal for an individual foreigner to lease a villa for themselves to live in, providing they have a residence permit/KITAS, but it's definitely illegal to then let it out for either short or long term rentals (it's also illegal for tourists to stay in it) as that is conducting a business enterprise which requires a villa letting license (KBLI code 55193) and is not allowed under any KITAS. It can be done by setting up a foreign investment company (PT PMA) but this involves a minimum investment of IDR 10 billion - about USD 630,000 - and the PT PMA would be liable for 10% hotel tax on gross revenue and 22% flat rate corporate tax on operating profits.

[@ursdreyer3122]

​@@Kembali-1607I think there are a lot of illegal rentals in Bali 😅

[@Kembali-1607]

​@@ursdreyer3122 Basically if they're not owned by Indonesian citizens or by a legitimate PT PMA company with legitimate shareholders (not 'nominees') in a capital investment of more than US$630,000 (which must be within a single development) with a proper legal partnership (not just contracted) with an Indonesian property management company to manage the rental business then they are illegal.

[@ursdreyer3122]

@@Kembali-1607 Yes, the second part of the answer is what I mean: most foreign villas on Airbnb are definitely run by these shady management companies. None of the owners are interested in owning their own company, and most of the owners don't have IDR 10 billion to invest. And running a legal business in Indonesia is quite complicated... no one wants that 🤣

[@Nessyk01]

How much did you give to the Balinese people ? Or are you just there to make money from their land ?

[@villanomics]

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.

[@Kinai89]

You can have a visa because your wife is Indonesian?

[@villanomics]

No, I am not married to an Indonesian. But you can invest without visa and - if you want - you can also opt for an Investor-KITAS.

[@grasmi]

Seems like a lot of work and stress for 8%… USD bonds paying 5%, IDR bonds paying 7%, SP500 up 21% YTD…

[@villanomics]

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.

[@RucsaculCalator]

I am in bali now 1 the lease thing is very dissappinted 2 they ssy 12% guarantee i smell scams 3 1 bedroom near semiak beach 40m 300 m dustance 180k lol 4 bali is kind of dump i think is very very overated ...

[@MrMaxm144]

Yuk. 8% yeild for a scamm city invertment. No good. Would have done far better if you had invested in the snp500

[@YumSe-d1e]

Interesting. Bitcoin outperforms you by a shit ton. What you’re doing has so much risk and so many variables. You talk about potential for upside? No my friend . You won’t outperform Bitcoin . 60% avg annual returns vs 8% lol. You might aswelll sell your property and go to index funds. By the way, the USA dollar depreciation starts around 7% a year. 😂😂😂😂

[@kendayr]

Thank you very much for the transparency of your analyzes. Where can i find your e-mail please ?

[@villanomics]

Hi, in the channel page, about section, you will find my email address. Looking forward to hearing from you!