Bali remains one of the most appealing locations for real estate investors. But what to choose: a villa or an apartment? Let’s look into the advantages and disadvantages of each option.
Villas in Bali
Advantages:
- Space and privacy – villas are normally located on a private territory with a swimming pool and a garden, which ensures a high level of comfort.
- High demand for rent – tourists and expats often look for villas for a long-term rent.
- Yield – renting out a villa brings a stable high income, particularly in popular districts (Canggu, Uluwatu, Seminyak).
- Flexibility in design and construction – opportunity to choose a layout and a design style.
Disadvantages:
- High maintenance cost – maintenance of a swimming pool, a garden, communal payments may become quite considerable.
- Need for management – a managing company or your own control over your real estate is necessary.
- Legal nuances – foreigners cannot own land in Bali, that is why purchase is drawn up as a long-term rental (leasehold) or company opening.
Apartments in Bali
Advantages:
- Affordability – price for apartments is lower than that for villas, which makes apartments a more affordable investment option.
- Minimal maintenance cost – maintenance is carried out by a managing company, while expenses are shared among all residents of a complex.
- High demand for a short-term rental – particularly in tourist districts, such as Canggu, Seminyak, Uluwatu, Nusa Dua.
- Easy resale – apartments are easier to sell, as they are in high demand among local and foreign investors.
Disadvantages:
- Limited space – lack of private territory, which can be a disadvantage for tenants seeking privacy.
- Dependance on a managing company – in case of poor management, the quality of service may worsen.
Conclusion. What to choose for investing?
The choice depends on your budget, investment strategy and willingness to manage your real estate. Investments both into villas and apartments alike can be profitable, it all depends on selecting an object – and this is where the specialists of our company step in!
