- Gross yields of 10–18% are real, but net is 3–5 p.p. lower after honest accounting.
- The formula is nightly rate × 365 × occupancy, minus platforms, management, tax and upkeep.
- DOMA's delivered villas run at 87% occupancy and 12.8% actual net yield.
- Off-plan adds a second engine, +15–30% capital growth by completion.
“Guaranteed 20%” is the most expensive phrase in Bali real estate. Real villa economics are simpler and better, a transparent formula where every variable can be checked. Let's count the way owners count, not the way brochures do.
The honest formula
Gross revenue = nightly rate × 365 × occupancy. From it subtract platform fees (~15%), management (20–25% of the remainder), income tax (~10%) and running costs (pool, garden, utilities, small repairs, call it $4,800/year for a 1BR). What is left, divided by the purchase price, is your net yield.
A worked example
Take a 2BR villa at $139,000, rate $120/night, occupancy 87%, gross ≈ $38,100. After platforms ≈ $32,400, after management ≈ $24,300, after tax ≈ $21,900, after running costs ≈ $17,100 net. That is ≈12%, and it matches what the delivered villas we track actually pay. Model your own scenario in the ROI calculator, with the same formula and open coefficients.
What moves the number
Occupancy is management quality (how to choose the company). The rate is product quality, meaning views, design, reviews. A mediocre villa with great management beats a great villa with lazy management, every year.
FAQ
Are the 87% and 12.8% audited?
They are operating figures from DOMA's delivered villas. Listing histories and reports are shown to buyers on request.
What occupancy should I model conservatively?
Use 70–75% for a stress case. Ubud's year-round retreat and long-stay demand keeps well-run villas above that.
When does income start?
Villas are handed over rental-ready, and first bookings typically land within weeks of going live.