I bought a villa in Canggu expecting a net rental yield of 8 to 10% -- the figure every agent quoted. Eighteen months later, my actual return was 3.2%, below what I could have earned from an Australian term deposit with zero risk. Meanwhile, my friend who kept his money in a Sydney apartment is clearing 4.8% net with lower volatility. This is the brutal truth about Bali rental yield vs Australia that agents do not want you to know, and how I discovered the real numbers the hard way.

The Gross Yield Illusion

Bali agents advertise gross rental yields of 10 to 15% based on peak-season occupancy. The reality is that annual occupancy in Canggu averages 62% according to Pertama Property transaction data, with low-season rates dropping 40 to 60% below peak. When you factor in property management at 20 to 30% of gross revenue, maintenance averaging 15% of revenue, utilities, cleaning, gardener, pool service, and the 10% government tax on rental income, the net yield collapses. My Bali rental yield vs Australia calculation showed the gap between advertised gross yield (12%) and actual net yield (3.2%) was a staggering 8.8 percentage points.

Bali vs Australia: The Side-by-Side Reality

Using the CoreLogic rental data for Australian cities, a Sydney apartment priced at AUD $800,000 delivers gross rent of AUD $42,000 per year (5.25% gross yield). After management fees at 8%, strata fees, council rates, and landlord insurance, the net yield is approximately 4.2%. A comparable Bali villa at AUD $400,000 (half the price) should theoretically deliver better returns. But after Bali higher management fees (25%), villa maintenance (15% of revenue), visa costs, and Indonesian rental tax, the net yield drops to 3.2%.

The Hidden Costs That Destroy Returns

Beyond the obvious management fees, Bali rental yield vs Australia calculations must include: currency conversion losses averaging 2 to 3% when repatriating AUD from IDR, annual visa compliance costs of AUD $2,500 to AUD $5,000, property insurance at 0.5% of property value (double Australian rates), sinking fund contributions for villa complexes, and the opportunity cost of capital tied up in an illiquid asset. The RBA statistics show Australian term deposits yielding 4.5 to 5% with zero management, zero maintenance, and instant liquidity.

Metric	Bali Villa (Canggu)	Sydney Apartment
Purchase price	AUD $400,000	AUD $800,000
Gross annual rent	AUD $48,000	AUD $42,000
Management fee	25% (AUD $12,000)	8% (AUD $3,360)
Maintenance (% of revenue)	15% (AUD $7,200)	5% (AUD $2,100)
Net annual income	AUD $12,800	AUD $33,600
Net yield	3.2%	4.2%

Related Articles

Bali rental income tax guide · Currency traps for Aussie investors · Villa insurance for Aussie owners

Further Reading

CoreLogic Australian rental data · RBA cash rate statistics · Australian rental yield calculator

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