FAQs

Geonet Investment Opportunities

What types of investment opportunities does Geonet offer?

Geonet primarily offers fractional ownership in hotel and commercial class developments, with opportunities to invest in individual units, villas, or fractional shares. Most of our investments are designed to generate strong returns from hospitality properties in Bali, particularly through collaboration with renowned hotel operators.

To view our current projects, view our Projects tab on our main menu or get in touch with our team.

How does fractional investment work?

Fractional investment allows you to invest in a portion of a property rather than purchasing an entire unit. You own a defined share of the property, and your return is proportional to that share. For instance, if you own 10% of a hotel unit, you would receive 10% of the rental income generated from that unit. This model makes high-value properties more accessible, allowing you to invest in premium locations without the full financial commitment. It's a flexible way to diversify your portfolio while benefiting from the long-term income generated by the property.

Is fractional investment the same as timeshare?

No, fractional investment differs from timeshare. In timeshare, you typically have limited access to a property for a specific time period each year. With fractional investment, you own a share of the property and benefit from any revenue generated, such as rental income and appreciation in property value.

Read more: Fractional Investment Real Estate: Is it Timeshare?

Can I invest in Bali property through my Self Managed Superannuation Fund (SMSF)?

Yes, you can invest in Bali property via your SMSF, but it must comply with Australian regulations. The property must meet the sole purpose test, ensuring the investment is for retirement. We can connect you with SMSF professionals who will guide you through the legal process, ensuring compliance. Rental income must be directed into the fund's account, and the property must be held in the SMSF's name.

Can I buy a villa or unit to live in?

Yes, while we primarily focus on investment and fractional sales, if you wish to purchase a whole unit as an owner-occupier, that is possible. Please reach out to us for details on available units.

How do you calculate ROI (Return on Investment)?

At Geonet, we calculate ROI using a detailed model that accounts for all costs and fees. We start by estimating revenue based on expected occupancy and Average Daily Rate (ADR). Then, we subtract management fees, sinking fund contributions, and other operational expenses. The net revenue after these deductions gives the true ROI. Our projections are grounded in market data, historical performance, and realistic property expectations.

Read more on our blog: Bali Real Estate: How Do We Calculate ROI?.

Purchasing Process

How can I reserve a unit?

To reserve a unit, simply contact our team or visit the project page on our website. Once you've identified a unit or fraction you're interested in, you can click on the "Full” or “Fractional Ownership" button, which will direct you to our reservations platform. Our team will be happy to walk you through the process and assist with any questions or details you need to complete the reservation.

What is the process of purchasing a unit or fraction?

The purchase process is simple and transparent. Once you've chosen the unit or fraction you'd like to invest in, you'll put down a deposit (typically about $750) to reserve it. After that, our team will send you the contract for due diligence, which lasts for two weeks. This gives you ample time to consult with your mortgage broker, financial planner, and ensure all your questions are addressed before proceeding. If paying in cash, the settlement process typically takes less than 30 days. For SMSF purchases, settlement can take up to 90 days. Our team is here to guide you through every step to ensure a smooth transaction.

What is the minimum investment required to get started?

The minimum investment required depends on the availability of our current stock. In the past, fractional investments have started as low as $35,000. However, availability and pricing can vary based on the specific property and the market conditions at the time. We recommend speaking to our team to get the most accurate and up-to-date information on available stock and investment opportunities.

What are the steps involved in the purchase agreement?

After you reserve a unit or fraction, our team will send you the official contract to sign. The contract will outline all the details of the purchase, including the payment schedule, ownership terms, and any additional clauses related to the unit or property. You’ll have two weeks for due diligence during which you can consult with your advisors, review all documents, and ask any questions. Once you're satisfied with the contract, you'll proceed with signing, and the transaction will move forward based on your payment method (cash or SMSF). Our team will support you throughout the entire process to ensure everything goes smoothly.

Property Management & Services

Can you sell my villa for me?

No, we specialise in working with commercial developers and hotel developments and do not handle the sale of individual villas or properties.

Do you offer property management services?

No, we do not. With our investors, one of the main benefits of our hotel investment model is that it’s a “hassle free” investment, where the hotel operators manage the day-to-day operations of the units. This includes handling guest services, occupancy, cleaning, maintenance, and all aspects of hotel management. These experienced operators ensure high-quality service and consistent revenue for investors.

How is the property maintained?

The property is maintained by our experienced hotel operators, such as TUI Blue and Cross Hotels & Resorts, who uphold the highest standards of quality and service. These operators are responsible for ensuring that all aspects of the property are well-maintained, from guest services to regular upkeep. Their expertise in managing hospitality properties ensures that the property remains in top condition, providing both an excellent guest experience and maintaining profitability.

What is a sinking fund?

A sinking fund is a reserve of money set aside for future repairs and maintenance of the property. This fund is used to maintain the quality and amenity of the property, preventing large, unexpected renovation costs. It ensures the long-term upkeep and safety of the investment.

Income & Returns

What is IPDC (Interest Paid During Construction)?

IPDC is a guaranteed return of 8% paid to investors during the construction phase of the property. It is designed to provide stability and consistent returns for investors before the property becomes operational. Once the property is up and running, the returns will then be based on the hotel's room revenue and operational performance.

How do I earn income from my investment?

Income is generated through the hotel operator's management of bookings through room revenue. The revenue is based on occupancy rates and the Average Daily Rate (ADR) for the units, and the investor's fraction or share of a hotel unit.

Are returns guaranteed?

While the 8% return during the construction phase (IPDC) is guaranteed, once the property becomes operational, returns are not guaranteed. The returns depend on the performance of the property, particularly room revenue, which is managed by the hotel operator.

How do you ensure high occupancy rates and profitability?

First, we partner with developers who are in the best locations, such as Seminyak and Canggu. We also partner with experienced hotel operators who have a proven track record of driving high occupancy rates and profitability. These operators employ dynamic pricing, targeted marketing, and leverage their global network to attract guests and ensure properties remain profitable.

Overseas Investment and Ownership Structure

How can foreigners own property in Bali, given Indonesia's ownership laws?

Foreigners cannot directly own land in Bali but can purchase property through long-term leasehold agreements (typically 25-30 years with options for extensions). GPFG navigates these legal frameworks with in-house legal experts, ensuring secure and compliant investments.

Read more details here: Overseas Property Investment: Our Top FAQs Answered!

How does leasehold property investment work?

Leasehold investments allow you to purchase rights to a property for a certain amount of time, with options to extend. The lease periods for most properties are 25-30 years, but certain developments can be longer (up to 50 years). While you don't own the land outright, you benefit from property appreciation, rental income, and personal use during the lease term. It's a straightforward and profitable method for foreign investors.

How is buying property in Bali different from buying in Australia?

In Bali, property for foreign investors is typically leasehold, while in Australia, freehold ownership is the norm. Other key differences include tax benefits, no stamp duty in Bali, and lower upfront costs. Bali's rental yields are also driven by tourism, while Australian markets focus more on long-term capital growth.

What are the tax implications for foreign investors in Bali?

Foreign investors in Bali are subject to a 20% tax on any rental income generated from their property. Thanks to the double taxation avoidance agreement between Indonesia and Australia, this tax is not double-taxed when reported in Australia. Always consult with a tax professional for advice on your specific situation.

Read more on our blog: Investor Income & the Double Tax Treaty between Indonesia & Australia

Geonet Office & Contacts

Can I tour the project sites?

Yes, anytime you are in Bali, we are happy to take you on-site to all of the current sites under construction or operational hotels and developments. Just let us know in advance, and we'll be happy to arrange the tour.

Can I come to your office for a meeting?

Of course! We love welcoming investors, clients, and visitors to our main office and showroom in Bali. You'll get a tour and meet our team. You can drop in during office hours or book a visit with our team by contacting us anytime.

Do you work with referral partners?

Yes, we work with referral partners across Australia, Singapore, China, and Indonesia. If you're interested in partnership opportunities, please reach out to us here or email info@geonet.properties.

Do you have open job opportunities?

We're rapidly expanding and always seeking talented individuals. If you have experience in property sales, finance, digital marketing, or creative services, feel free to contact us at info@geonet.properties or visit our Careers page.