Three questions for a seller of "investment" property: if there is no answer, the yield is made up
EZ
Evgeny Zhuikov
Investment analyst, columnist
Author - Evgeny Zhuikov, investment analyst. Author's column on Balinsky.
Evgeny Zhuikov noticed the same picture in Bali and at Russian resorts - Arkhyz, Krasnaya Polyana, Altai, Crimea. Whole neighbourhoods with beautiful pictures and talk of "investment potential". The text is from February 2026.
Three simple questions
The author asked sellers three questions:
- How many tourists come to this place, and who are they?
- What is the average price per night (ADR)?
- What is the occupancy?
Ordinary managers got confused and answered: "Well, come on, it's an investment, tourism is growing!" The head of sales at a large developer offered to pass the questions on to the analysts.
Why it matters
You cannot promise yield, occupancy and profit if you do not know where they will come from. Without answers to these three questions, the yield figures are backed by nothing.
Who takes the risk
The developer and the realtor earn at the moment of sale. When and how much the buyer will earn is unknown. All the risks fall on the buyer, and the deal is packaged as an "investment" with pretty charts.
What a real investment deal looks like
In the author's view, different. The developer invests their own money first: buys the land, does the paperwork, gets the project approved and takes on the first risks. Then they bring in an investor. And they earn together - from rental income or from sales. The risks are shared.
What a buyer should do
Before buying, ask the seller for these three numbers and ask for the source. You can compare them with independent data - for example, with rental statistics by area in Bali.
About the author
Evgeny Zhuikov is an investment analyst and the author of the Telegram channel [Advisors](https://t.me/advisorsz).
- since 2012 he has analysed investment products, and since 2015 projects in the real economy;
- in 2021–2022 he was an investment adviser listed in the Bank of Russia register (No. 105);
- in 2022–2023 he was chief operating officer of the development company Golden Tree in Bali;
- he did market research for hotel projects in Bukit;
- guest lecturer at MKB Investments, holder of a Russian FFMS 1.0 qualification certificate.
The author's opinion may differ from the position of the Balinsky editorial team.