Major pitfalls
1. Choosing Leasehold without analyzing Freehold
Do not compare only the form of ownership - evaluate financial efficiency. In 80% cases Leasehold format turns out to be more reasonable, but it is worth to confirm this with calculations.
2. Build calculations on the myth of "cheap construction"
Compare not only price, but also standards. The premium segment requires a corresponding investment - economizing on quality can cost more.
3. Buying without orientation to the end consumer - tourist
Start by analyzing your target audience. Demand is not only shaped by design, but above all by functionality and the emotions that the guest receives.
4. Follow trends, not strategies
Invest in sustainability and liquidity, not a fleeting hype. Trendy formats can quickly become irrelevant.
5. To bet only on "Balinese style"
Comfort is important to the guest: noise insulation, quality furniture, thoughtful service. Aesthetics without comfort rarely ensures high demand.
6. Focus only on proximity to the beach
The beach alone does not guarantee success. Without convenient access, developed infrastructure and unique advantages, the location loses value.
7. Expect instant payback
Even with high profitability, payback takes time, a sound strategy and a systematic approach.
8. Making decisions based on emotions
Always make a financial calculation. Even if the neighborhood is "to your liking," look at numbers, not just feelings.
9. Do not recognize future expenses
Calculate ROI taking into account all costs: maintenance, taxes, management. Passive income requires active control.
10. Focus only on the purchase price
Compare price vs yield, not just "where it's cheaper". A low price does not always mean a profitable investment.
Conclusion:
The main rule of an investor in Bali is to think about the end user. Your property should be not only beautiful, but also in demand, convenient and profitable for those who will use it.
