Property Investment in Bali: Why 2024 is the Best Time EVER to Buy in Bali

This may sound like a bold statement, but we are saying it – 

There has never, ever… up until this point in history… been a better time to invest in the Bali property market than right now.  

If you thought Bali real estate was hot pre-pandemic, you were right… but as we look at the island today, the property market has never been better for investors. If you are thinking about investing in Bali, below are our Top 10 reasons why RIGHT NOW is the best time to jump in.   

1. Tourism poised to hit record numbers. Bali tourism has made a significant comeback, with over 5.3 million foreign tourists last year and officials targeting a record 7 million by 2025. Australian visits hit a record 1.3 million in 2023, while arrivals from India, Singapore, and Malaysia have surged. The Chinese market is also recovering, with nearly 100,000 visitors so far in 2024 (as of February).

“When we get questions about the oversupply of units in Bali, we look at the data and the hospitality brands who are investing here, as well as plans for upgrading the airport and infrastructure,” says Mark Reed, GPFG International Sales Manager. “Demand is higher than ever and will continue for the foreseeable future. Investors are very pleased with this outlook to see increasing occupancy levels and nightly rates across the board.”

2. There are more choices than ever. Compared to years past, a big change you’ll notice across the Bali property landscape is that it’s no longer just tropical villas. Investors now have choices of all sizes and types for modern apartments, loft spaces, off-the-plan properties, hotel rooms, and commercial opportunities. Those looking to enter the Bali real estate market have endless options to suit their style, budget, investment goals, and location preferences.

Read more: It’s a Suite Life! 11 Reasons Why Hotel Rooms Should Be Your Next Investment

3. Off-the-plan is everywhere. Through our research, we have counted more than 200 new off-the-plan residential developments across Southeast Bali, and the total is growing almost daily. Due to the relaxing foreign investment regulations in March 2021, we are seeing more project developers enter the market in Bali than ever before. It’s now easier, more cost-effective, and more profitable for developers to build multiple units on secured land plots. Investors can save time and money with beautiful brand-new builds in almost every corner of the island.

4. The value-for-money and ROI beats almost anywhere else. If you are thinking about investing in property in Australia or most places in Europe, we recommend you make a quick comparison with the Bali market for property prices and value, as well as rental yield.

For Australia, the pandemic housing boom saw prices increase by 23.7% nationwide, with some areas nearing 30%. Despite interest rate hikes attempting to temper this growth, prices surged to record highs last quarter. This has priced many investors out of the market, and despite a rental crisis, the average rental yield remains around 4% nationally, with most portfolios being negatively geared.

By contrast, take a look at the Bali market. Capital appreciation is strong and steady, but prices remain affordable for investors, and the higher yields are driven up by tourism demand. For example, you can buy a 1BR unit in Beraban Luxury Lofts in the heart of Seminyak for  A$279,670 or a luxury apartment in Home Hills in Uluwatu for A$374,068, with forecasted returns of over 15%.

“When comparing markets, investors favour Bali for its cash-flow positive opportunities, unlike Australia, where negatively geared portfolios often rely on tax breaks to mitigate losses,” explains Reed. “In Bali, the income generated can enhance your financial situation in Australia, helping pay down debts and boost borrowing capacity.”

5. Lower price points welcome small-scale investors. You don’t have to buy a brand-new villa or apartment to enter the Bali market. Small-scale investors can take advantage of the island’s growth by looking into options with lower price points, such as investing in smaller off-the-plan studio units or hotel rooms. There are options for investments under A$ 200,000 where you can still earn double-digit returns. For example, investors with GPFG can buy a studio unit in the Berawa Luxury Lofts in Seminyak, with 5-star amenities starting from A$155,318.

6. Fractional investment is now available. Speaking of low price points, with GPFG, investors can go even lower with fractional property investment. A first of its kind for Bali investment, Fractional investors enjoy the same benefits and returns on their property purchase, but at a ‘fraction’ of the price. At Beraban Luxury Lofts in Seminyak and ownership options start from 25%, you can become a property investor in Bali for as little as A$41,000!  Fractional also makes luxury units accessible to more investors as well, with 10% fractional investment into the stunning 2-3 BR units at The Luc Luxury Villas starting from just A$89,000.

7. You can use Equity Release or SMSF for property investment. We are not just property specialists, we have built a team of expert mortgage brokers, financial advisors, and tax and legal experts to help our clients invest in Bali property, as part of a wealth creation strategy, With that, we show them how they can use the equity in their homes or SMSF to invest, and earn higher returns, to boost their retirement savings. Financing is not available in Indonesia for leasehold properties, so our Australian experts have helped to make financing options available for investors wanting to invest overseas.

Read more: Unlock Your Equity and Earn Cold Hard Cash

8. You can earn immediate returns. We have two ways that our investor can start earning RIGHT NOW. First, we pay Interest Paid During Construction, where our investors can buy an off-the-plan unit and earn a guaranteed 8% during the build phase. Or, you can buy a unit that is open or opening this year, and start earning your rental income from the bustling tourism traffic. The Cruise by Canggu Properti is opening in May, and The Luc Luxury Villas is opening in November, both are in the heart of Berawa/Canggu. So you can earn 8% now on any of our partner projects, and earn more after opening!

9. Better building standards than ever before. Due to the heavy influx of international buyers and developers and the heavy competition for savvy investors, there is more pressure on builders to meet international standards for building, design and quality of materials. Before buying a villa or a property in Bali, be sure to ask for due diligence on the property developer and builder, with references and checks for experience in the market. Qualified developers will be upfront and knowledgeable about the building structure, the surrounding infrastructure, and the expected wear and tear on your property.

10. You can maximise returns with tax incentives. Australians love investing into property because of the many benefits and tax deductions they can earn in Australia. But now, they can also invest overseas and earn the same benefits, to maximise their Bali returns even more. We partner with Duo Tax, to provide our investors with Depreciation Schedules, and a comprehensive strategy that ensures they are not missing out on any other available deductions and savings.

Read more:  How Can Property Investors Maximise Their Tax Savings?

Bali Property Investment with GPFG

With countless options available, affordable price points, high forecasted demands, and value that blows away Australian and European markets, we declare that this is the best time to invest in Bali – ever!

If you are as excited as we are and want more information on how you can take advantage of these historic times, get in touch with our team today.

 

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