Purchasing a villa in tropical island, such as Bali, is a wise decision for investment. Buying property, however, will be one of the biggest spending in your life, that’s why you need to take a very careful approach before jumping to the water.
While management is vital to turn your holiday home into money-making machine, the condition of your villa at initial purchase itself plays a huge part to contribute profits. Concept of how you will market your villa will also determine the right villa to purchase. Indeed, some points need to be taken into account before you decide to land a villa for investment.
Choose Prime Location
Undeniably, location will be the first thing to check before you even choose which villa to buy. A tropical island like Bali itself has several touristy destination, mainly due to the beaches, that grows into popular tourist hubs.
Know that in Bali, one location might have distinct characteristic than each other, and it has quite heavy influence to the demography of tourists that stay in such location. Seminyak, for example, is heavily associated with upper-class lifestyle and more segmented than Kuta, which is heavily popular among first-timer vacationer & party goers, and is quite cramped with all kinds of accommodation, or Canggu, which is known for its hipster and hobo lifestyle. These beach hubs, however, totally sits in different spectrum than Ubud, which is located among forests and rice terrain, and favored for a much calmer holiday with a touch of tranquility and spirituality.
Your property should be located in the heart if these popular tourist hubs, or at least stands very near to one. Being close to the main attraction will make your property more appealing, even outside the holiday seasons. If possible, choose a villa within walking distance from public restaurant, shopping centre, pub, and the most important, mini markets and ATM machine for guests’ basic amenities.
Closely related with location, a stunning view will increase desirability of your villa. You can boost your sale value up to 2-3 times with addictive scenery that’s easily accessible from bedroom or living room area. This is a view your guest cannot have back home, so a chance to indulge in this kind of eye-refreshment is always desirable. Think of villa overlooking the ocean, rice paddies, or mountainous terrain—surely an unbeatable value that will raise your booking potential.
Size of Property
Decide from early on, which type accommodation you are going to provide. Are you going to buy enormous villa with four to six bedrooms that will fit a whole extended family? Or are you going to focus on honeymooners and couples who are looking for smaller, more private villa?
Honeymooners tends to prioritize view and luxurious experience for their once-in-a-life-time celebration of marriage, while extended family (or group vacationers) put the possibility of being together as a group at their number one lists. A villa that focus on couples and honeymooners can expect steady booking at all time of the year. In the other side, you might want to wait until golden opportunity, such as long weekends and school holidays, to get group vacationers book your villa. Huge villas, however, are less in quantity than smaller accommodation in the market, which means less tight competition for villa owners.