Case Study: How Sarah from Melbourne Bought a Villa in Canggu

Sarah, 38, is a marketing manager from Melbourne, Australia. In late 2025, she bought a 3-bedroom villa in Berawa, Canggu for $197,000 USD. Six months later, it’s generating over $20,000 USD in net annual income.

Here’s how she did it — and what she learned along the way.

The Starting Point

Sarah had been visiting Bali twice a year for the past decade. After the sale of her Melbourne apartment in 2025, she had $213,000 USD in savings and was looking for her next investment.

Her options in Australia:

• A 2-bedroom apartment in Melbourne’s outer suburbs: $367K+ USD (would need a $153K mortgage)
• Expected rental yield: 3.5% gross

Her Bali option:

• A fully furnished 3-bedroom villa with pool: $197K USD (no mortgage needed)
• Expected rental yield: 10%+ gross

The maths spoke for itself.

Month 1: Research and Finding the Right Partner

Sarah spent the first month researching online. She read everything she could about foreign ownership laws, leasehold vs PT PMA, and common mistakes.

What she learned early:

• Foreigners cannot own land freehold in Bali
• Leasehold was the best fit for a single villa purchase
• Nominee ownership was too risky
• Due diligence was non-negotiable

She contacted Horizon Bali Property after finding our legal guide through a Google search. In the initial consultation, we assessed her situation:

• Budget: $213K USD total
• Goal: rental income + personal use (4-6 weeks/year)
• Timeline: wanted to complete within 3 months
• Preferred area: Canggu/Berawa (familiar with the area)

Month 2: Property Selection and Due Diligence

We presented Sarah with 5 properties matching her criteria — all pre-verified against our 8-point document checklist.

She flew to Bali to view them in person with Kristine, our on-ground agent. After visiting all 5, she chose a modern 3-bedroom villa in Berawa:

Detail	Spec
Type	Villa, 3 bedrooms, 3 bathrooms
Location	Berawa, Canggu
Land size	250 sqm
Building size	180 sqm
Ownership	Leasehold, 25 years remaining
Price	$197,000 USD
Features	Pool, open-plan living, rooftop terrace, fully furnished

Due diligence was conducted by our in-house legal team:

• Cost: IDR 15,000,000 (~$630 USD)
• Duration: 14 working days
• Scope: BPN verification, zoning check, tax history, dispute search, building permit verification

All 8 documents checked out. The SHM was clean, PBB was paid, building permits were in order, and zoning confirmed tourism/residential use.

Month 3: Legal and Completion

With due diligence cleared, the purchase moved to legal completion:

1. Lease agreement drafted by our in-house legal team — reviewed by Sarah’s Australian lawyer
2. Notarisation at a licensed Indonesian notary
3. Payment transferred via international bank transfer (AUD → IDR)
4. Keys handed over — Sarah was now the leaseholder of a Bali villa

Total costs:

Item	Cost (USD)
Villa purchase price	$197,000
Due diligence	$630
Legal support (1.5%)	$2,955
Notary fees	$200
Total	$200,785

Sarah had $12,215 remaining from her $213K budget — enough to cover initial setup and a buffer.

Setting Up for Rental

Sarah chose to rent the villa on Airbnb and Booking.com when she wasn’t using it personally. She hired a local property management company (recommended by us) at 18% of revenue.

Setup steps:

1. Professional photography (included with management company)
2. Airbnb and Booking.com listings created
3. Pondok Wisata licence obtained (required for legal short-term rental)
4. Staff hired: cleaner + gardener + pool maintenance ($350/month total)
5. Utilities set up: electricity, water, internet ($120/month)

The villa was listed and receiving bookings within 2 weeks of completion.

First 6 Months: The Results

Here are Sarah’s actual numbers for the first 6 months (October 2025 — March 2026):

Month	Occupancy	Revenue (USD)
October	58%	$2,320
November	62%	$2,480
December	88%	$3,813
January	82%	$3,389
February	55%	$2,053
March	72%	$2,880
Total	70% avg	$16,935

Annualised gross revenue: ~$33,870 USD

Operating costs (6 months):

Cost	Amount (USD)
Property management (18%)	$3,048
Staff	$1,400
Utilities	$480
Maintenance	$567
OTA commissions (~15%)	$2,540
Indonesian tax (10%)	$1,694
Total costs	$9,729

Net income (6 months): $7,206 USD Annualised net income: ~$14,412 USD Net yield: 7.2% (first year, still ramping up)

As the listing builds reviews and the peak season approaches, Sarah expects second-year net yields to reach 9-10%.

What Sarah Would Do Differently

We asked Sarah what she’d change if she did it again:

“Honestly, not much. The due diligence gave me confidence, and having Kristine on the ground made everything smooth. If anything, I’d have started the process sooner — I spent months overthinking before reaching out.”

Her three biggest takeaways:

1. Don’t try to do it alone. “I would never have navigated the legal side without a local partner. The contracts are in Indonesian and the system is completely different from what you’re used to back home.”

2. Due diligence is worth every cent. “For $630, you get complete peace of mind. One of the villas I was considering turned out to have a building permit issue — the due diligence caught it.”

3. Budget for the first 3 months of low occupancy. “It takes time to build up Airbnb reviews. My first month was quieter than expected, but it picked up quickly.”

Sarah’s Tax Situation

As an Australian tax resident, Sarah declared her Bali rental income to the ATO:

• Converted IDR income to AUD at ATO exchange rates
• Claimed allowable deductions (management fees, maintenance)
• Claimed a Foreign Income Tax Offset (FITO) for the 10% Indonesian tax already paid
• No FIRB implications (doesn’t apply to overseas purchases)

She works with an Australian accountant experienced in overseas property. Read our complete tax guide for details.

The Bottom Line

Sarah invested $200,785 USD and is on track to earn $14,000+ in net annual income — a 7%+ yield in her first year, rising toward 10% as the listing matures. She also uses the villa personally for 5-6 weeks per year.

Compared to a Melbourne apartment yielding 3.5% and requiring a mortgage, Sarah’s Bali investment delivers:

• 2-3x higher yield
• Zero mortgage stress
• A tropical villa she can use on holiday
• No ongoing Australian property costs (council rates, strata, insurance)

Want to follow Sarah’s path? Browse our verified properties or contact us for a free consultation. Every journey starts with a conversation.