Holiday Home or Investment Property? Buying in Bali or Thailand as an Australian

Ask Australians why they want a place in Bali or Thailand and most give two answers at once: somewhere to holiday, and something that pays its way when they are not there. That mix sounds sensible. In practice the two goals pull against each other on location, legal structure, licensing and tax, and the buyers who end up disappointed often tried to make one property do both jobs without deciding which job came first.

This commentary looks at how that trade-off plays out for Australian buyers in 2026. It is general information, not legal, financial or tax advice, and it does not consider your personal circumstances.

Start With How Many Weeks You Will Use It

Count the weeks you expect to spend there each year, including school holidays and the weeks your siblings will ask for. A family using a Bali villa for six weeks across July and December takes the property off the market in peak season, which is when it earns most. A retiree planning four months each Australian winter blocks Phuket's high season. Your personal use sets a ceiling on rental income before you look at a single listing.

Personal use also affects your Australian tax. The ATO limits deductions to the periods a property earns rent or sits available for rent at market rates. Weeks you use it, or lend it to family, cut what you can claim. See our guide to Australian tax on overseas property, including the 2026 negative gearing changes.

The Lifestyle Buyer

If the property exists for your own holidays, simplicity matters more than yield. You want clean title, low running costs and a place that feels like yours.

In Thailand, a freehold condominium gives the simplest title an Australian can hold anywhere in the region. It suits lock-and-leave owners: the building handles security and maintenance while you are away. A villa on a registered lease gives more space and privacy but more upkeep.

In Bali, a leasehold villa is the usual route. Buy the longest clean term you can, because value and resale appeal fall as the lease shortens. If you plan to spend long periods there and hold a Second Home Visa or KITAS, Hak Pakai gives a registered title over a home you live in. See our guide for Australian buyers for the detail on each structure.

The Investment Buyer

If the property needs to earn, the questions change. Location near demand, legal licensing for short stays, and the quality of management drive the return.

Short-stay licensing

Thailand. Thailand's Hotel Act requires a licence to rent accommodation for stays under 30 days. Most individual condo owners cannot obtain one, and many condo buildings ban daily rentals in their rules. Legal short-stay income in Thailand usually comes through a licensed hotel-managed or resort rental programme. Otherwise, owners rent on leases of 30 days or more.

Indonesia. Bali requires villas offered for short stays to hold the correct business licence through the OSS system, sit in a zone that allows tourism accommodation, and hold building approvals. Authorities have stepped up enforcement and restricted new tourism accommodation in parts of the island. Several Bali practitioners note that Hak Pakai suits residential use, not commercial short-stay rental. Confirm zoning and licence status in writing before you buy a villa sold on its rental income.

Gross yield versus what you keep

Marketing brochures quote gross yields. Management companies in both countries take 20% to 40% of gross rental revenue, before maintenance, furniture replacement, utilities, booking platform fees, vacancy and local taxes. Then Australian tax applies. Commentators who model Bali villas after all costs and Australian tax often land well below the headline numbers. Ask any seller for audited occupancy and net figures from the past two to three years, not projections. Our Bali investment guide and Phuket guide cover yields by area.

The Hybrid Buyer: Making Both Work

Plenty of Australians do combine use and income. Those who make it work tend to share a few habits:

• They fix their own weeks in shoulder season and leave peak periods to the rental programme.
• They buy within a licensed, managed rental pool rather than self-listing.
• They write the personal-use rules into the management agreement before signing.
• They keep a usage diary for the ATO.
• They accept a lower return in exchange for the holidays, and budget on that basis.

Bali or Thailand for an Australian Holiday Home?

Our Bali vs Phuket comparison covers the markets in more depth.

The Items Holiday-Home Owners Forget

Your will. Check whether your Australian will deals with the foreign asset, and whether the property's country will recognise it. Many owners make a separate local will. A Thai lease may or may not pass to heirs depending on its drafting, and Hak Pakai carries rules on who can inherit it. Ask your lawyers in both countries.

Insurance. Australian home and contents policies do not cover foreign property. Arrange local building, contents and public liability cover, and check whether rental guests are included.

Getting out. Think about who buys from you in ten years. A freehold Phuket condo in a well-run building sells to a wide pool. A Bali villa with eight years left on its lease sells to a narrow one.

Running costs while empty. Staff, pool, garden, security and utilities continue whether you visit or not. Budget for them in full.

Where Kinnara Fits

Kinnara Asia lists holiday and investment properties across Bali, Lombok, Phuket and Koh Samui on the Kinnara listings platform. Our Concierge team can introduce you to independent legal, tax and management professionals. We do not provide legal, tax or financial advice.

Write down how many weeks you will use the place, what it must earn, and what you will accept if it earns less. With those three numbers on paper, the choice between a Phuket condo and a Bali villa becomes far easier to make.