Investing in real estate has always been one of the most popular ways to preserve and grow capital. But how do you accurately assess the potential profitability of a project? How can you understand that the chosen property will generate maximum income? To answer these questions, it's important to analyze the input data and forecasts related to the specific property.
8 advantages of investing in the complex Magnum Residence Berawa
5000 m² of infrastructure
All necessary amenities for living and recreation are located directly on the premises of the complex
500 m from the ocean
Unique tourist location - a complex near the ocean and the best beach clubs in the world
190 m roof-pool
The world’s longest rooftop swimming pool
12-17% Projected yield of the complex for 1-3 years
High yield potential for the first three years of current prices
>90% occupancy
According to statistical data on occupancy in the Berava region and taking into account the uniqueness of the project in the market
Daily and long term rental
Required format of the complex
The potential growth rate over 5 years is 100%
Based on information about the current price per square meter, the projected increase in property value over 5 years, and management expenses, you can calculate the project's profitability. For example, if buying an apartment now costs you $4,325 per square meter, and after 5 years, the price per square meter is expected to reach $8,500, this may indicate a potential 100% increase in the property's value.
| Object price | $350 000 |
| Current price per square meter | $4 325 /м2 |
| Estimated price upon completion of construction | $6 000 - $6 500 /м2 |
| Estimated price in 5 years | $8 500 /м2 |
Profitability calculation for 1BR Apartments in Magnum Residence Berawa, Bali
For a comprehensive assessment of project profitability, all expenses related to property management must be considered. These include utilities, administrative costs, marketing expenses, and property maintenance. Equally important is an accurate assessment of the current market condition and its trends.
| 1st year after launch | 5th year after launch | |
| Property unit price | $350 000 | $515 000 |
| Gross rental income | $68 438 | $120 231 |
| Operating expenses | $8 952 | $10 900 |
| Overhead expenses | $1 880 | $2 397 |
| Management fee 15% | $10 266 | $18 035 |
| ROI | 13,53% | 25,40% |
| Gross operating profit (GOP) | $47 340 | $88 899 |
Key factors considered in calculating real estate investment profitability:
- Utilities and payments: Electricity, water, fuel for generators, etc.
- Administrative expenses: Back-office staff maintenance, stationery procurement, and other administrative costs.
- Marketing and occupancy: Expenses on marketing and promoting the property to potential tenants.
- Property maintenance: Providing facilities, guest services, etc.
- Contracted supplier costs: Rental of linens, contracted pest control, and other services.
| 1BR в Magnum Residence Berawa | 1st year after launch | 5th year after launch | ||
| Total rental income | $68 438 | 100% | $120 231 | 100% |
| Operating expenses | $8 952 | $10 900 | ||
| Property rental service expenses | $35 | 0,05% | $60 | 0,05% |
| Contracted supplier payment expenses | $2 025 | 2,96% | $2 460 | 2,025% |
| Other expenses (including capital repairs and renovations) | $6 892 | 10,07% | $8 380 | 6,97% |
| Gross apartment rental profit | $59 486 | 86,92% | $109 331 | 90,93% |
| Overhead expenses | $1 880 | $2 397 | ||
| Staff salary and other deductions | $810 | 1,18% | $980 | 0,82 |
| Deductions related to marketing and occupancy | $290 | 0,42% | $355 | 0,30% |
| Utilities (electricity, water, etc.) | $505 | 0,74% | $740 | 0,62% |
| Administrative expenses | $275 | 0,40% | $322 | 0,27% |
| Management fee | $10 266 | $18 035 | ||
| Total expenses | $21 098 | $31 332 | ||
| Gross operating profit GOP | $47 340 | $88 899 | ||
| ROI | 13,53% | 25,40% | ||
Making informed decisions regarding real estate investments requires a detailed analysis of all project aspects, including market forecasts and management expenses. Based on this data, ROI can be calculated, and a balanced decision aimed at maximizing future profit can be made.
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ISIA is your guide in the world of real estate and investments. Our expert team offers a full range of services, including market analysis and finding favorable conditions for successful investments. We provide legal support and documentation, ensuring legal protection for your investments. With ISIA, you get not only access to exclusive offers and property management but also the opportunity to minimize risks and optimize tax obligations. With us, you'll create a diversified portfolio of investments for stability and profitability. ISIA is your partner in achieving financial success through real estate investments.
