BREIG: how much a $675,000 Bali villa really earns
Balinsky recorded a podcast with BREIG's management company. The core of it is a breakdown of the report on a real completed villa: how much it earns and how much the owner keeps. Below are the key points for anyone thinking about buying.
The expert — Nikita, BREIG. The company has been on Bali for 10 years: it started with villa management and still does it. Today it manages more than 100 properties, including apartments. The company also builds — mostly 3-bedroom villas.
The figures below come from Nikita and from the management report shown in the video. Balinsky has not verified them.
1. The villa in the example
Aquamarine I, 3 bedrooms, completed, managed by BREIG.
- In 2020, when there was nothing on the plot yet, it sold for $380,000.
- Today it is on sale for $675,000.
2. How much it earns
- Revenue — about $8,000 a month.
- Occupancy over 8 months in a row: 84, 93, 77, 93, 84, 100, 96, 90%.
- The nightly rate moves by about 10% either way over the year.
3. Costs — about $1,000–1,300 a month
According to the report, per month:
- electricity — $368;
- salaries: pool, garden, cleaning, engineer;
- cleaning supplies — $80, laundry — $63;
- internet — $50, repairs — about $40;
- fruit and drinks for guests.
One-off purchases (for example, a bigger TV) — $270. Without them, costs are about $1,000.
These costs are paid no matter what. If the villa earns less, the owner is at a loss.
4. What the owner keeps
- Management fee: Nikita said 18%; the report shows 20%.
- Net, according to Nikita, about $5,350 a month. That is about $64,000 a year.
- On the 2020 price ($380,000) — about 17% a year.
- On today's price ($675,000) — 8–10%, by Nikita's estimate. By the report's figures — about 9.5% before tax. In the conversation Balinsky worked out about 7% after tax.
5. Revenue matters more than savings
According to Nikita, costs can be cut by $500 at most. Guests will notice and write about it in reviews.
But raising revenue by $2,000 a month — through ratings, furnishing and marketing — is realistic.
- You can find a manager for 10%. But poor management hurts both costs and income.
- BREIG does not collect a repair fund: it fixes things as needed and sends a monthly report with photos.
6. Seasons
- The best months are from late April to early September.
- November is the weakest, "the month of repairs".
- February is weak, March is average, growth starts in April.
- Around New Year prices jump sharply for 2–3 weeks.
7. Why a completed villa doesn't yield 15%
An owner won't sell a villa that yields 15%. He will raise the price until the yield drops to 8–10%. In Nikita's experience, Australians and Europeans buy completed property at 8% and are happy with it.
- 12% on a completed property is usually offered by someone who urgently needs money.
- 12% with about a year of waiting for construction is a normal deal.
- 15% is a rare case.
8. Resale: sellers now outnumber buyers
In 2023–2024 the market grew sharply. Many bought to resell. Now, according to Nikita, sellers greatly outnumber buyers.
- Bali is a high-yield market, but selling fast is hard.
- An urgent sale = a big discount.
- If you can wait, Nikita suggests waiting a year or two.
- Don't invest borrowed money, and don't count on surely reselling before the instalments end.
9. A cheap villa — look for the reason
- Often the problem is in the documents: a flawed building permit (PBG), or the required distance from a river was not kept. You may be told to demolish the pool.
- Nikita calls an old villa bought for renovation "a pig in a poke": pipes, wiring and concrete may turn out to be in bad shape.
- Before buying — a lawyer, a notary, a land check.
10. Land lease: extension
- According to Nikita, by law a lease is up to 30 years.
- The extension is written into the contract. If the landowner refuses, that is a breach of contract, and you can go to court.
- Nikita's example: his villa had 25 years. After 5 years he extended by 10 — back to 30, plus the right to another 10.
- A recent case: an investor won a court case against the state. Nikita's conclusion: rights are protected if you can afford good lawyers.
11. How much to invest
- Your last $100,000 — don't invest it anywhere. Borrowed money — neither.
- First set aside money for 2.5 years of living. The rest can be invested.
- To earn the most — the earliest stage, but with a developer who has built before.
- With $750,000 Nikita would take one 3-bedroom villa rather than 5 apartments: there are fewer such villas and occupancy is higher. But it takes longer to sell.
- Villas near the ocean, in his words, are 80–90% full. A kilometre from the ocean — about 40%.
- BREIG raises prices as construction progresses. According to Nikita, roughly: buyers paid $270,000 at the start of construction and $360,000 by the end.
The full interview (in Russian) is available via the video button below.
