Markit wrote
Depends on your reasons for doing it. Some people seem to think they are going to make 15 to 20%/year ROI and that might happen for the first year or 2 but in the long run, with renovation and personal costs that just aint sustainable. If you have high residency then you also have high wear n tear on the premises and one bad review can ruin you, yes really, one bad review. So it aint "build it and sit on the pool with your Pina Colada and watch the dosh roll in".
If you think you can use it as a way to meet really nice people and supplement your income/savings to make a nice life on Bali possible, then that's closer to the reality.
Make sure you charge for (and offer) top level accommodation and you will get a nice clientele. You do not want to cater to the lower end of the market, really!
You are right about useing this as a supplemental income, but not for huge profits. From what I've seen here, the construction is pure crap, and things start falling apart fast. I would think, the landlord should have a solid rental contract, with a large deposit, to cover any damages the renters do to the property. But the building and plumbing, wiring, and all going to be needing repairs, which are the owners responsibility.
It sounds like a good idea, but too much of a financial risk for me.
