Buying Property in Bali as a Foreigner

Buying Property in Bali - Villa living

Steps to Buying Property as a Foreigner

There are a range of considerations to go over before buying property in Bali. Be sure to closely understand the investment and consider not only the price but the expected rental income and the market for those seeking to lease.

Naturally, unreal will assist you with these important considerations although we recommend our clients also form a decent picture of the market. For example, we can recommend the most recognized areas for buying property in Bali although there are also new up-and-coming districts well worth considering. Therefore, it’s important for you to have some understanding of these metrics so we are able to work closely alongside you knowing you have a decent understanding of the location and how it fits your intended lifestyle.

 

Buying Property in Bali - Villa Pool

 

Holiday Rental Sector

Investors wanting to take advantage of the holiday rental market will require what is called a Pondok Wisata permit that allows you to invest in a legal business in the holiday rental industry (bear in mind this permit is limited to “Tourism Zones” only). Note that the holiday rental business typically costs more due the fact that tourism zones demand higher rates. Such properties will require the commitment of being well-managed, marketed and maintained.

 
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Yearly Leases

Property investment for yearly rentals will yield less but demand less and you will not require a Pondok Wisata license or does not require to be in a tourism zone.
Typically those leasing will pay upfront per year or more and the market for ex-pats is growing exponentially.

In our Overview blog post, we discuss how to properly Buying Property in Bali safely by setting up a PMA which is considered the most secure avenue for a foreign national to invest in a Bali property and uniquely allows the right to build with a certification called a “Hak Guna Bangunan.” This license allows, as stated in our Overview post, the investor 25 years with extensions for a total of 80 years (and extendable).

This certification makes you the legal owner of the property and provides you to sell the property further note that if the purchaser is an Indonesian citizen they are able to change the certification to a Hak Milik (right to own).

We suggest the opportunity to speak directly with you regarding other details such as operating the property using a “Hak Pakai,” a certificate allowing you to run the property as a business.

Note the process to set up a Bali PMA requires about 10 weeks. unreal is able to provide you comprehensive assistance through our legal partners in setting up a PT PMA.

Buying Property in Bali - Villa Interior

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