Ever dreamed of owning an investment property in Bali?

Robert Hoving, CEO of GORO, did once upon a time, which led him down the path of starting an Airbnb arbitrage business with Bali villas.

Today in 10 minutes or less, you’ll learn:

• 🏡 Robert Explains Real Estate Investing 101

• 🏝️ Myths and Realities of Real Estate Investing in Bali

• 🇮🇩 Jakarta vs Bali vs Singapore Real Estate

• 💪 How Robert Invested in His First Bali Villa

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☀️ Investing in Bali Real Estate | Robert Hoving

Robert Hoving is the co-founder and CEO of GORO, Indonesia's leading fractional property investment platform. He was born in the Netherlands, where he spent most of his youth. At age 17, he moved to the UK for his studies and ended up living there for 7 years, building and eventually selling his first start-up.

For the past 8 years, he worked in sports tech in Singapore and now he’s building GORO, Indonesia's leading fractional property investment marketplace. GORO is backed by Iterative VC, XA Angel Network and property titans from Colliers, 99.co and proptiger.

🛣️ Tell us about your career journey from sports e-commerce to becoming a real estate investment platform founder.

I founded a retail e-commerce start-up during my final year of university in the UK. The business was acquired, which presented the opportunity to move to Singapore. I was involved in a variety of sports technology roles. Although I truly enjoyed my role, the entrepreneur in me was looking for a new opportunity.

During a visit to Bali, I started to wonder what the returns are like on the island of gods. I quickly realised that property in Bali offers strong returns. I ended up starting an Airbnb arbitrage business where I rented villas long-term and sublet them short-term.

My “side hustle” was delivering strong profits which caught the attention of my friends, who wanted a piece of the pie. This made me wonder if there was a bigger problem that needed to be addressed.

After validating the problem with a larger audience, I decided to give up my well-paid job in Singapore, to start GORO. I feel very fortunate to be able to work on a problem that can have a positive impact on millions of people in Indonesia and abroad.

🏡 Explain how real estate investing works to a 10-year old. Who do you typically see investing in the Real Estate asset class and why? How does it compare with other asset classes?

Real estate is known as one of the best-performing asset class in history. The world's richest have created generational wealth by investing in real estate. Generally, people invest in real estate for two key reasons: rental yield and capital appreciation.

Rental yield is passive income from the person or company renting the property. It is calculated by taking the total rental income per month, and deducting all expenses and taxes. The net income is multiplied by 12 (months) and divided by the purchase price of the property.

If the property is financed, the rental yield pays for the monthly financing costs and maintenance costs. If there isn’t any financing on the property, the rental yield makes an ideal source of passive income.

Historically, real estate has gone up in value. Capital appreciation is realised when the real estate is sold. To calculate the capital appreciation, simply deduct the net purchase price from the net selling price.

However, property usually comes with a high entry barrier and is illiquid, limiting its access to the public. To make real estate investing more accessible, fractional property investment platforms have entered the market globally.

For example, Arrived (US), Stake (UAE), Strata (India), Kasa (Korea). They allow investors to partake without having to purchase the entire real estate. These platforms take care of sourcing, managing and selling the property, serving as a great source of passive income. This helps to open up real estate to everyone.

🏝️ What are the common myths and realities of investing in Bali real estate?