The thesis
A delivered 2-bedroom Berawa townhouse with documented operating history (8.9 Booking rating, professional management in place) at $249k. The short remaining lease (22 years) is the structural reason for the price – buyers willing to operate the rental and exit before lease compression hits get a clean mid-term yield trade with no delivery risk and no development overhead.
Positioning
Berawa core townhouse at the entry tier of Canggu mature inventory. The 2023 build date and existing operating history convert this from a speculative bet to an operational asset. The 22-year lease is the catch – this is a 5-to-10 year hold, not a 25-year hold. Underwriting must price in the lease compression curve and the realistic exit window.
Legal structure notes
22-year remaining Hak Sewa is below the 25-year industry default for foreign-buyer underwriting. Verify the underlying landowner identity, the extension clause wording in the notarised deed, and whether any encumbrance (HT) is recorded against the title at BPN. The extension path is reportedly negotiable but currently not contractual – this is the file to read before deposit.
Yield modelling
8–10% gross ROI is the operator-managed run-rate disclosed in the partner brief. Editorial desk model on the lease-compressed value curve suggests effective net yield (rental + lease decay impact) of 5–7% over a 5-year hold, depending on the resale market at year 5. The headline 8–10% reads as cash-yield only and does not net out lease amortisation.
What is included
- Private pool (10 m²) and garden
- 2 bedrooms with ensuite bathrooms + guest WC
- Open-plan living, dining, kitchen with full fit-out
- 3 air conditioners · drilled-well water · fibre internet
- 700 m walk to Berawa Beach · gated community 24/7 security
- 8.9 rating on Booking.com under current management
Risk factors
- Lease term 22 years – the dominant risk; price the lease compression curve into the underwriting, not just the rent
- Extension clause not yet contractual – verify wording in notarised deed before deposit
- Resale market for 12-year-remaining lease in 2033 is uncertain – plan exit by year 5–7
- Berawa supply absorption tightening – ADR ceiling depends on continued demand for the core
- Existing operator handoff – verify management agreement is transferable to a new buyer