How Our Client Made 136% ROI on Bali Villa Investment
June 15, 2023
When John and Sarah approached Keepstar Real Estate in early 2020, they were looking for a vacation property that could also serve as a solid investment. After careful analysis of global markets, our team identified an exceptional opportunity in Bali's emerging luxury villa market.
The Investment Strategy
We recommended a 4-bedroom villa in the Canggu area, which was showing strong appreciation potential due to infrastructure developments and increasing tourist interest. The property was purchased for $650,000 in March 2020.
Our strategy included:
- Minor renovations to enhance the property's appeal ($45,000)
- Professional photography and marketing materials
- Partnership with local luxury rental agencies
- Strategic pricing based on seasonal demand
The Results
Despite the challenges of the global pandemic, the property began generating rental income by late 2021 as travel restrictions eased. By 2023, the property had:
- Appreciated to a market value of $1.2 million
- Generated $85,000 in annual rental income
- Achieved an occupancy rate of 78%
- Delivered a total ROI of 136% (including appreciation and rental income)
Key Success Factors
Several factors contributed to this exceptional performance:
- Strategic location selection in an emerging luxury market
- Timing the purchase during a market dip
- Quality renovations that enhanced rental appeal
- Professional property management
- Effective marketing to high-value clients
This case study demonstrates how strategic real estate investments in emerging luxury markets can deliver exceptional returns, even during challenging global conditions.