Hi Everyone,

I’ve come across a real life case of a Russian investor in Bali on the website of one of the Russian real estate portals Real Estate Bulletin.

Why do I think that this shortened English version of the story would be interesting for you - even if your property for sale is in a different country?

Easy - the major principles of an investor’s road to success are the same, and you might find the information useful for your own marketing to foreign investors, if you know what they want.

So, one day in 2022 the above mentioned Russian investor, let’s call him BN, realized that the only way to save his money was to invest in real estate abroad. He and his wife vacationed in Bali in the past, loved it and decided to invest in a new 2-bedroom villa at the very early stage of construction. The idea was to rent it out first, with going on vacations there once in a while themselves, and later to think of even moving to Bali.

First they started learning about details: possible payback time, legal terms and benefits for foreign investors and how easy or difficult money transfers are. Based on the numbers gathered, they hoped that their investment would pay back in about six years after the completion of the construction.

The most important criterion for them was to find a reliable company that would build the villa for them and then take it under its management for renting out. (Note for developers: never forget to mention the future management options in your advertising to foreign investors!)

BN made a great emphasis on this phase of research and preparation before the final decision had been reached. He paid a lot of attention to a company’s experience, possible hidden fees, guarantees provided and realistic expectations of rental income in the future.

The short list of suitable companies contained ten companies out of too many initially. Then the time had come to evaluate particular projects from the point of view of the villas’ size, design, infrastructure, financing terms and location.

The project had been chosen, the agreement signed after careful consideration with a lawyer, the first payment transferred and the investor’s journey began to be implemented in bricks and stones.

The period of construction took a year as promised. BN and his wife could be able to watch the progress online. Their villa came out fully furnished and ready for tourists.

The first half year of renting it out has shown very good results. The financial reports come every month and rental money every three months. In high season the occupation rate is 90%, the managing company charges 20% of rental fees, the end of the year prognosis of return on investment is 20% (32% if the price growth to take into consideration).

BN is happy as an international real estate investor and shares his positive experience with other Russian aspiring investors in international properties (in the original article there are all real names and locations mentioned).

Would you as a developer or realtor like to publish stories of your success with Russian investors on the Russian internet? It would bring you more clients - word-of-mouth marketing works! Email me for help with your marketing in Russian needs.

To your best business success,

Sincerely,