David and Sarah from Brighton, Melbourne, walked into a Sanur real estate office in 2019 with a question: could they really build a Bali property portfolio on a school teacher’s budget?

"I earned $95K teaching," David says. "Sarah earned $72K as a physio. We had $60K savings and zero Bali experience."

Seven years later, they own two leasehold villas in Sanur worth a combined AUD $630,000 and generating AUD $72,000 per year in net rental income. Their total capital gain: approximately AUD $180,000 — a 40% return on their original $450K investment.

Here is their exact Bali property investment journey, what they bought, what they earned, and what they would do differently.

2019: The Search

David and Sarah spent six months researching locations. They considered Seminyak (too expensive), Canggu (too volatile), Ubud (too far from the airport), and finally settled on Sanur.

"Sanur was perfect," Sarah explains. "It had the beachfront cafes we wanted, direct airport access via the new toll road, and prices were half of what we saw in Seminyak."

"We found a 200 sqm leasehold villa for AUD $195K with 22 years remaining. Our accountant thought we were crazy. We bought it anyway."

They structured the purchase through a Hak Sewa (leasehold) agreement, paying AUD $195,000 upfront for a three-bedroom villa that needed cosmetic renovation. The vendor wanted AUD $220,000. They negotiated down by pointing out the outdated kitchen and missing pool fence.

2021: The Second Purchase

By 2021, their first villa was generating AUD $2,800 per month in gross rental income through Airbnb bookings, with an average occupancy of 72%. After management fees of 18% and maintenance costs, they cleared approximately AUD $22,000 net per year — an 11.2% net yield.

With proof of concept established, they bought Villa 2: a four-bedroom villa, ten minutes from the beach, 23-year lease. Price: AUD $255,000.

"The second purchase was easier. We had a track record, a notary relationship, and understood BPHTB and PPN costs. We paid AUD $23K in taxes and knew what we were getting."

2023-2026: The Portfolio Matures

By mid-2026, their two villas were valued at approximately AUD $340,000 and $290,000 respectively — a combined appreciation of AUD $180,000. Annual net rental income stabilized at AUD $72,000 ($4,500/month per villa during peak season, $2,800/month off-peak).

The couple uses a local property manager who charges 18% of gross rental revenue. They visit Bali twice a year for inspections and annual compliance reviews.

What They Would Do Differently

Negotiate harder on the first property: They overpaid by roughly AUD $15,000 on Villa 1 due to inexperience
Include a pool renovation clause: The first villa’s pool needed $8,000 in repairs within six months
Use an Indonesian tax accountant from day one: They overpaid PPh Final by AUD $2,300 in Year 1 due to incorrect filing
Buy closer to the beach: Proximity to the Sanur beachfront adds 20-30% to nightly rates for the same villa size
Consider Hak Guna Bangunan instead of Hak Sewa: The shorter lease term on Villa 1 limits its resale pool

Key Numbers at a Glance

"Bali property changed our retirement timeline by about eight years," David says. "If you pick the right location and respect the lease terms, it works."

For personalised guidance on building your own Sanur investment portfolio, book a consultation with Pertama Property’s investment advisory team.

This Bali property investment story shows how a Bali property investment can deliver strong returns. Their Bali property investment strategy is repeatable for any Bali property investment buyer. Starting a Bali property investment requires research and a Bali property investment advisor who understands local conditions. A balanced Bali property investment portfolio includes different locations and lease structures.

Frequently Asked Questions

Can foreigners buy property in Sanur as an investment?

Yes. Foreigners can leasehold (Hak Sewa) for 25-30 years or hold through a PT PMA company for Hak Pakai or Hak Guna Bangunan titles.

What is the average rental yield in Sanur?

Sanur yields range from 8% to 14% net depending on property type, proximity to the beach, and management quality.

How much does a villa in Sanur cost in 2026?

A three-bedroom villa in Sanur ranges from AUD $180,000 to $450,000 depending on land size, build quality, and leasehold remaining term.

Is Sanur better for investment than Canggu or Seminyak?

Sanur offers lower entry prices, less volatility, and strong family tourism demand. Capital growth is more moderate.

Do I need a property manager for a Sanur villa?

Yes. Professional management costs 15-20% of rental income and is essential for remote Australian owners to maintain occupancy and compliance.

External references: For leasehold legal frameworks, see ATO foreign income guidance. For property compliance, see BKPM investment regulations. For travel and safety information, refer to Smartraveller Indonesia.

Related guides: Read our Sanur vs Canggu vs Uluwatu ROI comparison and the Bali area guide and leasehold vs freehold comparison.

PERTAMA PROPERTYPERTAMA PROPERTY

PERTAMA PROPERTY

PERTAMA PROPERTY
PERTAMA PROPERTY