Owning and maintaining a vacation rental in Bali can be a lucrative and pleasurable endeavor. However, the situation can turn sour when you no longer enjoy the experience of having property in this island. Maybe it gets too overwhelming or it’s no longer profitable. Some short-term vacation rental property owners consider giving up after a certain amount of time, and that’s totally okay. If any of these circumstances apply to you, it might be time to call an agent and put your Bali property for sale.
You Can No Longer Manage the Bali Property
It might be time to start looking for a buyer if you’ve been managing the property yourself but are no longer able or willing to do so. Meanwhile, you don’t want to hire a third-party property management business to take over the responsibilities. This happens occasionally when owners move to a distant area and don’t want to deal with the inconvenience of renting and maintaining the home from afar.
The Market for Bali Property for Sale is in Seller’s Advantage
Sometimes, the property market is booming and you think it’s time to make profit of your assets. For example, real estate agents are seeing that holiday rental market prices are presently on the rise following the COVID situation. You must be aware of market fluctuations in order to obtain a reasonable price for your vacation property. This is a crucial sign you shouldn’t overlook if you want to increase your profit margins significantly.
If you’ve been waiting for a better price on your short-term rental to pay off a mortgage or liquidate built-up equity, this market could be a hint that it’s time to sell. A few indicators of this are:
- the price per square foot for real estate in your area is rising
- the length of time houses stay on the market is dropping
- the brokerage activity in your neighborhood is increasing.
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The Property’s Life Cycle has Come to An End
Usually, people who buy a property in Bali for personal use will eventually come to the end of property’s life cycle. Maybe your family used to get together frequently to Bali, and you bought a villa for family’s private use. However, now the kids are grown and the elders are living separately with the children or sadly has peacefully leave the world, so the family-get-together are becoming less and less frequent. You either not using the property as often as they used to or you no longer traveling more. In other words, the reason they bought the house is no longer as compelling. Most people have reached the stage in their lives where selling makes sense. If you think the house still make a good value property for sale in Bali, it maybe the best decision to put in in the market.
You Need A Big Repairs for the Property
It’s critical to assess the state of your property in Bali when opting to put it for sale. You might expect to spend a lot of money if your holiday rental requires major repairs, such as roof replacement or kitchen upgrades. Instead, disclosing and transferring the renovation costs to the future buyer may be a preferable option.
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Your Rental Revenue Isn’t Enough to Cover the Cost
It’s a negative income property if the income doesn’t meet your expenses. That you are feeding it instead of it nourishing you. This is linked to the capitalization rate (cap rate). The cap rate is calculated using the formula: income less expenses divided by the purchase price. “If your cap rate is weak or failing, you may want to focus on other investment opportunities that will generate a higher return.