The price of a property does not have to be the amount you need to invest in it. With fractional investing, several investors share in one specific property, each with an amount they choose. The property is rented out, a manager runs it and the result is split according to each share. In this article we walk through the whole mechanism using the villa we currently have on offer.
A simple example of shared financing
Villa Seseh in Bali is valued at €335,000. Instead of a single buyer, it is financed by a group of investors. An investment of €20,000 corresponds to a share of approximately 5.97% — just under six per cent of the villa and of what the villa earns. An investment of €50,000 corresponds to 14.93%, and €100,000 to 29.85%.
A share is not an abstract slice of a fund. It relates to a specific villa with an address, a floor plan and documents you can review before you invest.
What exactly you get
- A contractual share in the villa and in its rental income. The size of your share reflects your investment relative to the value of the villa. The rights to the property (in Bali, a leasehold) are held by the AMANI group’s Indonesian company (PT PMA); your share and its terms are set out in a written contract in Slovak.
- A monthly report and a payout in EUR. After each month closes you receive an overview of revenue, occupancy, costs and the amount attributable to your share. The payout is paid into your bank account (IBAN).
- Free nights at the villa. An investment of €20,000 includes two nights a year, and proportionally more for larger amounts. Further stays are discounted under the terms of the contract when the villa is available.
- The option to sell your share. The share may be sold under the terms of the contract. AMANI has a right of first refusal and will help find a buyer among the other investors. The precise transfer terms are set out in the contract for the specific project.
Who looks after the villa
You do not deal with day-to-day operations. Our team in Bali handles rentals through booking platforms and direct bookings, pricing, guest communication, cleaning, pool and garden maintenance, utility payments and reporting. As an investor you deal with the villa at three points: when you sign the contract, when you read the monthly report and when you stay there yourself.
How the result is split
The process is the same every month and can be checked in the report:
- Gross rental revenue — nightly rate × number of occupied nights.
- Minus management — the manager’s fee of 18% of gross revenue.
- Minus operating costs — utilities, cleaning, consumables and minor maintenance, roughly 7% in the model.
- Minus the repair reserve — 4% of revenue until the reserve fund reaches €5,000; after that, no further contributions are made.
- The villa’s net result is split between the investors according to their shares.
| Model year — Villa Seseh, 75% occupancy | Amount |
|---|---|
| Nightly rate €290 × 274 occupied nights | €79,460 |
| Management and operations (25%) | − €19,865 |
| Villa net result | €59,595 |
| Investor share 5.97% (investment of €20,000) | ≈ €3,558 a year, ≈ €297 a month |
The table shows the period after the reserve fund has been filled. Until the fund reaches €5,000, a further 4% of revenue is set aside, so in the first year the investor’s share comes to ≈ €3,369 a year (≈ €281 a month). This is a model calculation before tax on the investor’s side. The actual result depends on occupancy, the nightly rate and costs in a given month; in the conservative scenario at 65% occupancy the annual return is around 15%, and at 85% around 20%. Returns are always modelled, never guaranteed.
What you pay and what you don’t
You pay the amount you invest. The manager’s fee, operating costs and the reserve are covered from the villa’s revenue, not from further payments by you. How extraordinary costs and any additional contributions are handled is set out in the contract for the specific offer. We do not recommend investing money you will need within the next year.
Who it makes sense for
For investors who want income from property without buying and running a whole property themselves; who want to see a specific property rather than an anonymous portfolio; and who accept that rental returns vary with the season and the market. It is not a solution for anyone looking for a guaranteed return or needing to withdraw their money at any time.
How to proceed
You choose an opportunity and an amount, make a non-binding reservation for a share and receive the documents within 24 hours. This is followed by a short call, the contract, identity verification and the transfer of your investment. You receive a report from the first month of operation. How the property right held by the AMANI group company for Villa Seseh works is explained in our article Leasehold in Bali.
