Realistic yields
10–15% gross for managed short-term villas in Canggu/Uluwatu; 4–6% for long-term residential. Gross numbers are easy to inflate — what matters is net yield after management, voids, tax and maintenance.
Exit strategy
Plan your exit before you buy. Three viable exits:
- Sell to another foreign buyer (needs prime liquidity)
- Sell to a local (needs reasonable local price level)
- Hold and refinance, extracting equity
Common mistakes
- Buying on emotion during a viewing trip
- Skipping the independent lawyer to "save money"
- Believing developer rental guarantees at face value
- Ignoring service charges and maintenance reserves
- Underestimating FX risk on a 10-year hold
Main risk in this market
Zoning (green/yellow/red), illegal STR licensing crackdowns, and currency volatility.
Key takeaways
- Plan your exit BEFORE you buy.
- Net yield, not gross, is the right metric.
- Treat developer rental guarantees with scepticism.
- Service charges and FX are silent yield killers.
- Main local risk to manage: Zoning (green/yellow/red), illegal STR licensing crackdowns, and currency volatility.
Ready to test what you learned?