1. Market Identification
Use Brixfox to compare micro-locations. Look for yield gaps where property prices are stable but short-term rental demand (ADR) is rising. Focus on Berawa, Uluwatu, or Pererenan for highest growth.
- Check 12-month occupancy heatmaps
- Verify infrastructure projects (new roads/clubs)
2. Term Sheet & Reservation
Once an asset is identified, sign a Memorandum of Understanding (MOU). This secures the property while you conduct due diligence. A reservation fee (usually 1-5%) is paid into an escrow account.
- Ensure reservation is refundable pending legal audit
- Confirm the current lease term remaining
3. Legal Due Diligence
Crucial step. A qualified notary or lawyer checks land zoning (ITR), building permits (PBG/SLF), and ownership history. Brixfox data helps verify if the property is 'Rental Ready' legally.
- Verify 'Tourism Zoning' (Orange Zone)
- Check for existing liens or disputes
4. Execution & Notarization
Final sale and purchase agreement (AJB or Lease Deed) is signed in front of a Notary. Taxes (BPHTB) are settled, and the original certificates are updated or transferred.
- Notary fees typically 1% of transaction
- Payment usually happens via secure local bank transfer
Understanding ROI Calculations
Brixfox focuses on Net Yield. We subtract operational costs (approx. 30%), including management fees, utilities, and minor repairs, from the Gross Revenue (ADR x Occupancy).
Common Investor Pitfalls
Ignoring Zoning
Never buy in a 'Green Zone' if you plan to rent. It is legally restricted from tourism activity.
Hidden Lease Gaps
Always verify if the lease is 'Extendable at Market Price' or 'Pre-defined Fixed Price'.
Over-optimistic Occupancy
Standardize for 70-75%. Don't believe 90%+ year-round claims without proof.
Maintenance Reality
Tropical climates cause rapid wear. Allocate 5% of revenue to a CAPEX reserve.