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Location Strategy for Long-Term Property Investment in Bali

20 March 2020 by Ade
Location Strategy for Long-Term Property Investment in Bali

Last year, we have published an article (Where to rent a villa in Bali?) to show both buyers and sellers of property rentals what the different locations across Bali can offer.

 

However, for serious people looking to invest in property, simply knowing where your customers are renting is not enough justification to pick a location for your investment.

 

But this fact is good news because it gives you more options. You can still make sound investments even on property that is not prime real estate such as Seminyak, Kuta, or Uluwatu. You can still start your project even with limited funds.

 

You just have to follow the 4 rules of thumb for a smooth property business:

1. Place bets on development

2. Know your neighborhood

3. Know your customers

4. Opt for low maintenance properties

 

1. Place bets on development

 

The first principle is counter intuitive. You know that Seminyak, Kuta, Uluwatu and many ‘hotspots’ have high occupancy rates, attractive neighborhoods, and are the first places people read about when they look up ‘Bali’ online.

 

Well, they are incredibly expensive properties to buy. You will also compete with people who have a ton of experience in the playing field. In addition, tourism never stays in one location; it spreads out.

 

You should learn to predict future developments in tourism. While still cheap, buy properties in Canggu, Mengwi, Pererenan, Karangasem, and be one of the first to play the property game here.

 

 

 

 

2. Know your neighborhood

 

Developing areas still have natural and cultural features that are relatively untouched, which can become your USP (Unique Selling Point). Despite all the advice that you read about investing in Bali properties, you don’t need to get close to the beach.

 

Look at Ubud. It’s a hilly little town whose growth in tourism is fueled by peaceful terrace rice fields and a Monkey Forest. The nearest coastline is 40 minutes away by car.

 

Pick an area that is close to undiscovered natural attractions, like an increasingly popular hiking route, a beautiful view point, or an untouched bay where locals enjoy swimming.

 

Make sure that your property is accessible by car (i.e. located on the main road). Take some free insight from our Location Guide.

 

3. Know your customers

 

Think beyond ‘tropical beach paradise and martinis’ – Bali offers more than that. Instead, think of ‘escapism’ as the main attractive quality of the island. People come here to release tension of everyday living through various ways – yoga, surfing, night clubs, photography, trekking, and more.

 

Bali is also becoming an increasingly popular destination for digital nomads – they come here to discover fresh perspectives and a new work-life balance.

 

Work with what you have, and build your property around accommodating the unique needs of your market.

 

4. Opt for low maintenance properties

 

If you are building your villa or holiday home from scratch, pay attention to how reliable the land is. Is it prone to drought or flooding?

 

If you bought land with a property, carefully inspect the building. Does it need repainting? Any facility replacements?

 

A long-term property investment requires a marketing strategy

 

If you’re worried about the low occupancy rate, make use of free social media platforms to advertise your property or advertise via word-of-mouth.

 

Businesses usually run slowly at first, but if you invest in digital marketing (buying a simple website, for example), your property will have a better presence and image online, and would outcompete other new players that are still behind in marketing.

 

Bali Coconut Living is not only a property agency – we can advertise your property, manage it for you, and even give you some consultation from legal aspects to investment advice.

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