Thanks davita for the belated welcome. Yes I have been a long time viewer short time contributor.
by way of context I am a relative late arrival to Bali, only started visiting a few years ago in my early 40s, Bali was the kind of place I never wanted to visit but when I eventually did its was, WOW. Since then I have travelled back a couple of times a year and been thinking and passively looking for investment.
Started looking in Ubud then quickly moved to looking in Seminyak which evolved to looking in Canggu. After considering 30+ villas over the last year we think we may possibly of found one. There is a Villa in Umalas with a +30 year lease, designed in a Traditional Balinese style, with 3 bedrooms, open living, large pool and garden, peaceful rural feel but close enough to Seminyak and Canggu (with traffic) not to be isolating.
In terms of the numbers (all in USD) asking price is around $180K, nightly rental around $150 (booking history shows around 60% occupancy) and annual expense circa $10,000 (excluding tax, depreciation) also the owner currently does their own booking and advertising (i.e. no management company expenses) but pays staff onsite to deal with villa management issues. Using traditional sources of return on investment I am calculating around 7% before tax. It has all the required licenses to be compliant. The primary aim of this villa is for short term holiday rental and to provide investment return.
So my question is what benchmarks make sense to use for this investment? I am also open to any other insights or advice from experienced investors.