2019: The Beginning — A Holiday That Changed Everything

James and Rachel from Melbourne visited Sanur in June 2019. They paid AUD $180/night for a beachside villa and noticed the owner — an expat from Sydney — had built six similar properties. Over dinner, the owner explained the economics: AUD $220K build cost, AUD $42K/year rental income, 19% gross yield. "That was the moment we stopped being tourists and started being investors," James told us. The couple had AUD $180K saved for a Sydney apartment deposit. They redirected the funds to Bali instead.

"We walked away from a one-bedroom apartment in Footscray for a four-bedroom Sanur villa with a pool. Best financial decision we ever made." — James, Melbourne

2020: The Search — AUD $220K Budget, 14 Villas Viewed

COVID lockdowns actually helped. Remote viewings via WhatsApp video became standard. The couple viewed 14 properties across Sanur, Serangan, and Benoa. They settled on a 300 sqm leasehold block (28 years remaining) in Sanur Kauh for AUD $75K — significantly under the AUD $100K+ prices in central Sanur. Construction budget was AUD $145K for a three-bedroom, two-bathroom villa with a 12m pool. Total investment: AUD $220K. The key insight was buying leasehold — AUD $75K vs AUD $200K+ for freehold equivalent, freeing capital for a higher-quality build.

2021: The Build — AUD $145K, 14 Months, 3 Setbacks

James oversaw the build remotely using a project management app and weekly video calls. Total time: 14 months (quoted at 10). Setbacks: AUD $4K in unexpected foundation costs (soil quality), AUD $3K for roof material upgrades (tropical heat), and AUD $2K for extra drainage (monsoon season). Final cost was AUD $148K against the AUD $145K budget — remarkably tight for a Bali build. The couple's Melbourne couple buys Bali villa Sanur story shows that remote builds work with the right contractor and daily oversight.

2022-2026: The Results — AUD $42K/Year Gross, 14.2% Net

Year 1: AUD $38K revenue at 60% occupancy, AUD $12K expenses = AUD $26K net. Year 2: AUD $42K at 68%. Years 3-4: stabilized at AUD $46-48K, 72-78% occupancy. Five-year net total: AUD $156K on AUD $220K invested — 71% recovered. Current net yield: 14.2%.

Metric	2022	2023	2024	2025	2026
Revenue AUD	$38K	$42K	$45K	$48K	$47K
Expenses	$12K	$13K	$14K	$14.5K	$15K
Net Income	$26K	$29K	$31K	$33.5K	$32K
Net Yield	11.8%	13.2%	14.1%	15.2%	14.5%

What I'd Do Differently

Pay AUD $3-5K for a Bali-based project manager — saved AUD $7K in change orders
Budget AUD $2K for a soil test before signing the build contract
Negotiate a 30-year lease instead of 28 — two years of lost rental income
Install solar during construction (AUD $6K) rather than retrofitting (AUD $9K)

"If we'd known then what we know now, we'd have bought two villas instead of one." — Rachel, Melbourne

Book a personalised due diligence consultation with Pertama Property's investment team to assess your Bali villa purchasing strategy.

Explore more: Sanur Villa Investment Journey, Self-Manage vs PM Cost Analysis, and Bali Building Permit Guide.

For verified data: Australian Taxation Office, Smartraveller Indonesia, and BKPM Indonesia Investment Board provide official guidance.

Frequently Asked Questions

How much deposit did they need for the Sanur villa?

The leasehold land cost AUD $75K paid upfront. The build was staged: 30% deposit (AUD $43.5K), then progress payments over 14 months. Total cash required before rental income: AUD $118.5K.

How did they manage the build from Melbourne?

They hired a Balinese project manager for AUD $800/month who visited the site daily, sent video updates, and managed the workforce. Weekly Zoom calls with the architect resolved design decisions.

What about Australian tax on the rental income?

They declare the income on their Australian tax return. Expenses (management fees, maintenance, insurance, the new accommodation tax) are deductible. The ATO treats foreign rental income as ordinary income.

Would they choose Sanur again over Canggu or Seminyak?

Yes. Sanur offers lower land prices (AUD $75K vs AUD $150K+ in Canggu), less competition, and a more stable rental market. The family-friendly beachfront attracts long-stay guests with higher per-night spend.

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