Today, it seems like every property in Bali is marketed as a “great investment.” Promised ROIs of 15–20% are common, and in some cases, even higher figures are thrown around.
But let’s be real—these returns are often unrealistic, especially when all costs and taxes are properly accounted for. That’s a topic we’ll dig deeper into another day.
One key consideration often overlooked is the lease structure. Many leases marketed today lack a truly secure extension. That’s a major red flag.
Imagine if there’s another pandemic, a financial downturn, or unexpected structural issues requiring major renovations. Any of these events could wipe out several years of revenue—and your ROI along with it.
Then there’s market oversupply, a real risk in some areas of Bali. Lower nightly rates and reduced occupancy could significantly affect your rental income.
At Seven Stones Indonesia, we always advise investors to look beyond the glossy ROI projections. If you’re considering a leasehold, ask yourself:
Does this investment also serve a broader purpose—lifestyle, sustainability, long-term personal use? If not, it might not be the right fit.
A More Secure Path
Another solid alternative is to buy freehold property and convert it to an HGB (Hak Guna Bangunan) title, or invest in properties already under HGB.
While this route may require a larger initial investment and may yield a slightly lower short-term ROI, you gain a secure asset with strong capital appreciation potential.
You also unlock the ability to leverage the asset, borrowing against it for future investments—something leasehold titles don’t offer.
What We Recommend
We always recommend investing with reputable developers—those who deliver high-quality construction and have completed projects to show for it. If you’re buying leasehold, make sure:
- It includes long-term secure extensions,
- The build quality is high,
- And the project fits with your broader goals.
Or consider our curated selection of turnkey HGB properties—high-end investments with motivated sellers, already operational, and capable of delivering both short- and long-term rental returns from day one. These are assets you can build on, both figuratively and literally.
Thought-through investments are good investments.
Whether you’re new to the market or looking to expand your portfolio, reach out to Seven Stones Indonesia today. We’re happy to help you explore your options—or simply have a conversation about smart investing in Bali.
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