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Projection of profitability for the first and fifth year after the launch of the project Magnum Residence Berawa, Bali

Projection of profitability for the first and fifth year after the launch of the project Magnum Residence Berawa, Bali

Magnum Residence Berawa is an incredible apartment complex that goes beyond anything you've ever seen.

Located in the heart of Bali's tourist region, in the Berawa area, it has become one of the most attractive places for investment.

The project is scheduled for completion in September 2025. One of the most notable aspects of the complex is its world's largest rooftop pool, which will attract a constant stream of tourists.

More details about the complex can be found on the Magnum Residence Berawa, Bali 

Berawa's location is one of the most popular on the island, with excellent infrastructure for living and leisure. Here you'll find the best beach clubs, surfing spots, restaurants, cafes, and other entertainment.

Among the advantages of the complex are over 5000 square meters of free infrastructure, the highest quality materials, ocean views from the upper floors, and a wide range of amenities, including personal jacuzzis on balconies, coworking spaces, a fitness center, and much more.

Projection of Income for Magnum Residence Berawa

The following calculations are based on the experience of the management company, profitability statistics of the region, and analysis of the investment market. Our team makes every effort to ensure maximum accuracy and objectivity in determining potential benefits for investors.

The table shows the projected income data for the first and fifth years after the project launch for different types of apartments.

The first year after the launch of the project The fifth year after the launch of the project
Type Average price per day Occupancy Market unit price Average price per day Occupancy Market unit price
1BR 250$ 75% 300,000$ 366$ 90% 450,000$
2BR 460$ 75% 600,000$ 674$ 90% 900,000$
  • Apartment Types in the Complex: 1BR - one-bedroom, 2BR - two-bedroom.
  • Average Price per Night: This is the average rental rate expected to be received for each apartment type per night.
  • Occupancy: This is the projected percentage of time during which the apartments will be occupied. For example, if the occupancy is 75%, it means that the apartments will be occupied for 75% of the time.
  • Market Unit Price: This is the projected market value of each apartment type over the respective period. In the first year, it's an assessment of the market value of each apartment type, and in the fifth year, it's the forecasted price after five years.

The first year after the launch of the project The fifth year after the launch of the project
Income Income
Type Profit Net profit Profit Net profit
1BR 68,500$ 47,393$ 120,239$ 88,929$
2BR 126,040$ 85,800$ 221,240$ 169,439$
  • Profit: This is the total income expected from each apartment type over the respective period.
  • Net Profit: This is the income after deducting all expenses, including operational expenses, management fees, administrative expenses, etc.

When analyzing expenses for the Magnum Residence Berawa complex, various aspects are considered, including both operational and overhead expenses.

Operational expenses cover utility expenses such as electricity, water, and fuel for generators providing independent energy supply to the complex. Specifically, these are necessary expenses to maintain the comfort and functioning of all premises and facilities of the complex.

Overhead expenses include various marketing and sales expenses, such as advertising, advertising mailings, promotional events, and staff uniforms. Additionally, they account for general and administrative expenses, including courier expenses, bank commissions for credit card transactions, staff salaries, and expenses for decorating premises for events.

The first year after the launch of the project The fifth year after the launch of the project
Deductions Deductions
Type Operational Overhead Management fee Operational Overhead Management fee
1BR 8,952$ (13%) 1,880$ (3%) 10,275$ (15%) 10,900$ (11%) 2,397$ (2%) 18,036$ (15%)
2BR 12,121$ (11%) 9,212$ (7%) 18,906$ (15%) 14,768$ (9%) 3,847$ (2%) 27,851$ (15%)
  • Management fee: This is the management fee paid to the management company for providing property management services.

These expenses are significant in calculating the profitability of investing in the Magnum Residence Berawa project, as they affect the overall income from the complex and its profitability. A careful analysis of these expenses helps ensure effective financial management and optimization of expenses to achieve maximum profitability for the project.

Calculation of projected ROI

Yes, considering all calculations, including expenses and income, we can forecast the ROI (Return on Investment) for properties in the Magnum Residence Berawa complex. ROI is a key indicator that indicates the relationship between invested funds and returns.

The first year after the launch of the project The fifth year after the launch of the project
Type ROI ROI
1BR 15,8% 29,64%
2BR 14,3% 28,24%

Forecasting ROI allows investors to assess the effectiveness of their investments and determine whether the project is profitable. With the profitability indicators for the first and fifth years after the project launch for different types of apartments, we can make predictions about investment returns. For example, for 1BR and 2BR apartments, the forecasted ROI ranges from 15.8% to 29.64% in the first year and from 14.3% to 28.24% in the fifth year, respectively.

Thus, with the calculation of projected ROI, informed decisions can be made regarding investments in properties in the Magnum Residence Berawa complex, taking into account all aspects of their profitability and expenses.

For further information on investment terms in Magnum Residence Berawa, Bali, please contact ISIA's professional agents.

22 February 2024
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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.