As one of the top destinations in Asia, having a thought to buying a villa in Bali is still had by many investors around the world. It’s because Bali is still a tourism center that remains the most visited place by tourists, even after the pandemic. As of September 2022, it was recorded that 1.19 million international tourists visited Bali.
The tourism industry is the main economic driver in Bali and the impact of the COVID-19 pandemic has certainly caused tourism in Bali to paralyze the tourism sector in Bali. Even so, this is the right time for you to start property investment in Bali. Read further below to find out why.
Why Invest in Bali Property?
Even though the tourism industry was paralyzed due to the impact of COVID-19, Bali is still attracting investors to invest in Bali property. The fast recovery compared to other places is one of the reasons why investors still prefer Bali as a safe place to invest. Here are the reasons why Bali property is the prima donna for investing:
1. The Tourism
We all know that Bali is a natural place. There are so many beautiful waterfalls, stunning expanses of rice fields, dense and beautiful forests, and many beautiful beaches accompanied by sunsets and sunrises that other places cannot offer. The range of natural destinations in Bali is limitless.
This natural beauty that is still maintained and beautiful is the strength of tourism in Bali which attracts tourists to miss Bali all the time. This is why Bali has emerged from the pandemic more quickly than anywhere else in the world.
2. The lifestyle
Apart from being a popular destination, Bali is also famous for its relaxed lifestyle compared to other cities. This is why Bali has become a fast-growing hotspot for digital nomads in recent years.
Most of them say that the Balinese lifestyle is an example of the perfect balance between the relaxed island attitude and entrepreneurial vision. Internet and wifi connections are also developing rapidly compared to other paradise islands.
Internet access and online work is easy to do anywhere. It is predicted that the Work From Anywhere phenomenon will continue to develop in the future following the changing dynamics of post-pandemic life.
Apart from internet access, the relatively low cost of living is also one of the reasons. Local and non-local food can be found easily everywhere. Apart from that, easy transportation access also makes life in Bali more enjoyable and makes it easier for them to live on this paradise island. Then, what’s not to like about Bali?
3. The Location
The island of Bali is the most famous island in Indonesia and is a gateway to some of the world’s most stunning areas of natural beauty. Bali Island is also accompanied by several other islands that are no less beautiful. There are the islands of Nusa Penida, Nusa Lembongan, and Nusa Ceningan which also have hidden gems hidden behind them.
The many tourist locations on other islands in Bali can be your opportunity to choose the right location for your property investment. The more strategic and close to tourist areas, the better for your property investment. So choose the right location for your property investment in the long term.
4. Affordable Price
Compared to other paradise islands, Bali property has relatively low prices. This is one of the considerations and attractive options for investors looking for property investment on a budget. Don’t worry, we will explain to you about how budget you need to prepare to get a Bali property. Just keep on reading!
Can Foreigners Buy Property in Indonesia?
The Indonesian Government Regulation
Is foreigners allow to buying a villa in Bali and own the property? The answer is yes! Villas in Bali can be purchased by foreigners. According to Government Regulation Number 103 Article 2 paragraph 2, foreign nationals are permitted to purchase real estate in Indonesia if their presence provides benefits, conducts business, works, or invests in Indonesia.
Type of property and location
Foreign nationals can own two types of property in Indonesia. In accordance with Government Regulation of the Republic of Indonesia No.103 of 2015, foreign nationals are allowed to own two types of property, namely apartments and landed houses. Given the scarcity of apartments in Bali, landed houses are preferred for investment.
Choose the right location in addition to the type of property. A strategic location near tourist areas is the best option for investment. There are several popular property areas in Bali to consider, including Canggu, Pererenan, Seminyak, Umalas, Kerobokan, Seseh, Sanur, Ubud, and the Bukit Peninsula.
Bali Property ownership requirements
However, you will not be able to own the land on which the villa is built as a foreign individual. The “freehold title,” or “Hak Milik,” is a landowner title that can only be held by Indonesian citizens. To hold title to the property as a foreigner, you will need to use a mechanism known as a “Hak to Use” (right to use). This type of ownership gives you the right to use the property for a set period of time.
The government grants foreigners investing in Bali property a 30-year Right to Use. Foreigners are permitted to renew for a period of 20 years. If the extension usufructuary expires, the renewal period is 30 years. Foreigners are permitted to renew for a period of 20 years. If the extension usufructuary expires, the renewal period is 30 years. Foreigners can own property with usufructuary rights for up to 80 years as long as they have an Indonesian residence permit.
You will also require building use rights in addition to usufructuary rights (right to build). This title is required for both foreigners and property owners when buying, selling, or managing commercial villas.
How to Find The Right Property
Of course, patience is required when looking for the right property. But don’t worry, there are several things you can do to make it easier to find the right property. Here are some ideas to get you started in your search:
1. Online
You can start your search through Real estate agencies, classifieds websites, social media groups, and online platforms that list properties for sale in Bali. You can use keywords like “villa for sale Bali” or “land for sale Bali” to find listings that meet your requirements.
2. Local agents
There are many real estate agencies in Bali that can help you find a property. These agents typically have a wide range of listings and can provide you with guidance on the local property market.
There are several benefits and costs to consider when working with a real estate agent:
Benefits:
- Expertise: Real estate agents are trained professionals with extensive knowledge of the local property market. They can provide you with valuable insights and guidance when it comes to buying or selling a property.
- Network: Real estate agents have a wide network of contacts and resources that can help you find the right property or buyer for your needs.
- Efficiency: Working with an agent can save you time and effort, as they can handle much of the work involved in buying or selling a property, such as scheduling viewings, negotiating deals, and preparing paperwork.
- Legal protection: An agent can help you navigate the legal aspects of a real estate transaction, such as reviewing contracts and ensuring that all necessary documentation is in order.
Costs:
- Commission: Real estate agents typically charge a commission based on the sale price of the property. This commission can range from a few percent to over 10%, depending on the location and type of property.
- Fees: In addition to the commission, agents may charge other fees, such as for advertising or preparing marketing materials.
- Risk of conflicts of interest: While agents are required to act in the best interests of their clients, there is a risk that they may have conflicting interests if they represent both the buyer and seller in a transaction.
3. Networking
If you know people who have already owned property in Bali, they may be able to provide you with leads or recommendations for available properties. Our network of community experts allows us to network with real estate companies that you can contact.
4. On-site
If you are already in Bali, you can search for properties by driving around and looking for “for sale” signs, or by directly contacting local agents or property developers. This way must be exhausting but you could find a hidden gem property that you couldn’t search through online platforms.
How Much is Property in Bali?
The government has also set a minimum property price limit for foreigners to purchase. This is done to ensure that the property market remains stable and affordable to foreigners. It is possible to obtain a property in Bali for as little as IDR 2 billion for an apartment.
Once you’ve found your dream home, keep in mind that real estate transactions in Indonesia must be conducted transparently and under the supervision of the appropriate authorities. You must also pay for the property in full or your transaction will fail.
Documents Check
Once you’ve found your dream home, all you have to do is check the property ownership background documents.
This step is critical for ensuring legal ownership of the property you are about to purchase. It will also detail any disagreements, debt payments, current property status, and ownership.
The following are important documents that you must verify with the property owner:
- Kartu Tanda Penduduk (Indonesian Identity Card) of the owner/seller
- Kartu Keluarga (Family Card)
- Marriage Certificate or Death Certificate (depending on the circulstances of the couple)
- Original certificate of land ownership
- PBB tax payment, called SPPT PBB
- Owner/seller’s tax number (NPWP)
How To Manage Property
Furthermore, managing your property is the most important step in your Bali property investment journey.
Managing a bali property can involve a variety of tasks and responsibilities, depending on the specific needs of the property and the expectations of the owner or owners. Here are some general steps to take when managing a villa:
- Determine the property’s goals and objectives. Do you intend to use it as a vacation rental, a second home, or your primary residence? Understanding the property’s intended use will help guide your management decisions.
- Make a budget and a maintenance and upkeep plan. This should include regular cleaning, landscaping, and any repairs or renovations that are required.
- Consider hiring a property management company to handle the day-to-day tasks associated with managing the property. This can include tasks like coordinating with guests, handling bookings, and managing maintenance and repairs.
- Establish property policies and procedures, such as guest rules, check-in and check-out procedures, and any other relevant policies.
- Review and update your property management plan on a regular basis to ensure the property is well-maintained and running smoothly.
- Keep up to date on local laws and regulations that may have an impact on the property, such as zoning regulations, tax regulations, and health and safety codes.
- Maintain meticulous records of all financial transactions involving the property, including income, expenses, and taxes.
It is not easy to become a property owner, especially if you are new to the hospitality industry. Many new property owners struggle to manage their property effectively.
As a result, Bukit Vista provides professional property management services that are simple, dependable, and customizable for each property. Watch video down below how our management service can help you!
Bukit Vista property management services have made the lives of over 206 property owners easier by managing their properties individually.
As a Bukit Vista partner, you will have your property managed optimally based on real-time market analysis conducted by the Bukit Vista team, as well as other professional services.
To learn more about what we can do for your property, please visit our website. Contact us now for a free consultation with our experts. Tell us about your issue and let us help you to find it out.