Registry number: 5-0666472/001
Smart villas in a complex, Bali
The total area of the complex is 1900 square meters, which includes an apartment building with 12 rooms located on two floors, as well as 24 two-bedroom smart villas of 62 square meters each. each. A developed internal infrastructure is provided. Swimming pool, recreation areas, in the neighboring apartment building there is a training room, sauna, hammam, reception, security service and video surveillance system, parking for cars and motorbikes. The property is rented ready-made “turnkey”, i.e. includes furniture, appliances, plumbing, engineering systems.
LIQUIDITY FACTORS
Location
PERERENAN beach 12 minutes, SESEH 20 minutes, CEMAGI 25 minutes - on foot.
The Pererenan area is a new hub for expats and tourists. It is distinguished by new infrastructure, premium real estate, moderate traffic, an abundance of tourist attractions, and green areas.
The plot of land on which the villas will be built is surrounded by new buildings and rice fields. By agreement with the land owner, these plots cannot be developed in the next 8 years.
External infrastructure
Within a radius of one kilometer from the complex there are new premium restaurants in the Pererenan area, the Jungle Padel sports club, gyms, spas, and the Pepito supermarket is a 6-minute drive from the complex.
Transport accessibility
Transport accessibility allowing quick access to all main areas of Bali: Airport 65 minutes / Ubud 70 minutes / Seminyak 40 minutes / Canggu 10 minutes.
Lease terms (LeaseHold)
The contract with the land owner was signed for 30 years. There is a guaranteed extension of the lease term after the first five years of ownership.
Construction time:
start 02/01/2024 - end 12/30/2024
FIRST STAGE OF SALES. MAXIMUM INVESTOR PROFIT.
Includes all taxes.
# | Property type | S sq.m. | Price per sq.m. | Price |
1 | SWOI GARDENS 2 bedroom villa | 62 | $1,774 | $110,000 * |
*price of $110,000 applies to making a down payment of 70%
if you make a down payment of 60%, the price will be $120,000
if you make a down payment of 50%, the price will be $130,000
EXIT 1. RENTAL BUSINESS
Indicator | Apartment Pererenan |
Average daily rental rate in $ | 120 |
Occupancy, % | 75 |
Gross income, $ | 32 850 |
Utility payments 12% | 3,942 |
Management commission 20% | 6,570 |
Airbnb/booking.com aggregator commission 13% | 4 270 |
Net profit | 18,067 |
ROI/return on investment | 16.42% 6 years |
EXIT 2. RESELL
Indicator | Apartment Pererenan |
Cost of the finished object | 180,000 |
Mandatory land tax | 2,000 |
Amount invested | 110,000 |
Net profit | 59,000 |
Airbnb/booking.com aggregator commission 13% | 4 270 |
Net profit | 18,067 |
ROI | 53.63% |
STRATEGY: 5 years of rental business, then sale of the asset.
Rent for the first 5 years
Net profit in the first year - $18,000
Second year + 3% (minimum for inflation) = $18,500 Third year + 3% = $19,100; Fourth year +3% = $19,700; Fifth year + 3% = $20,300
TOTAL on rent for 5 years you will earn: $95,600
Sale after 5 years
Today sq.m. The finished property is valued on the market at a minimum of 3000 USD. With a minimum price growth rate of 3% per year, in five years sq.m. will cost $3,500. The value of the asset will be at least $217,000.
You will need to pay a 5% brokerage commission for finding a buyer, as well as a flat land tax of $2000. Thus, your net profit will be: 217,000 - 110,000 - 10,850 - 2,000 = $94,150
The total net profit for 5 years will be:
Rent + resale = 95,600 + 94,150 = $189,750 or 34.5% annual net income.
INTERACTION
Payment plan:
Booking deposit $2,000 / signing of letter of intent / due diligence period (up to 15 days)
First payment 5 days after signing the contracts - 70% minus $2000 deposit
Subsequent payments according to an agreed schedule taking into account your wishes, for example 3 payments of 10% every three months.