Getting Started: Investing in Bali Property
This post is to give you an overview of investing in a home or villa in Bali. Let us help you with a comprehensive look at the basics but please of course watch our Blog as we progress with stories valuable to the process. You will also need to spend some time deciding on a comfortable budget as well as researching the island’s many neighborhoods because the location and housing types vary greatly and may not be suitable for you. Have a look at our locations on our homepage to get Investing in Bali property.
When considering an investment you are no doubt wising a decent return of 10% or more by either a short or -long-term lease and with the notion that your investment will improve higher yields year on year.
Our international property investors typically seek a purchase to lease and or purchase to sell. Let’s examine purchase to lease as an investment strategy, which provides you as a property investor to earn decent returns by way of first, rental income, and as an investment that witnesses capital growth. This is a popular option as it provides an ongoing investment return with an ultimate sale as the other source of your ROI.
Many of our clients chose to buy to sell, perhaps purchasing a property they envisage that has the potential to renovate and upgrade and then place it back on the market. Often the investor for this type of strategy has had experience with buying a structure and land with potential and then fixing it up for a greater return.
Others look to develop and build properties on their own and then sell them for a higher ROI. While this strategy is desirable for some it does require “hands-on” ability and a lengthier time frame and will require an above-average acumen for the local building trade or simply a good degree of patience.
Our advice at unreal depends on the buyer however generally speaking purchasing in investing in Bali property is a prudent approach as it allows steady rental income and income on the final sale after it has appreciated… it’s our opinion that Bali property does indeed safely appreciate.
Setting Up a Foreign Owner Company (PMA)
By establishing a foreign-owned company (PMA) one is allowed to purchase property and further provides you to own the property for 80 years and in this time you can resell it on a freehold basis. These titles can only be used for yearly rentals. Some investors will not opt for a PMA as it requires a work permit (KITAS) and a little more effort to get all in order. If buying a property under a PMA is not your desired option then you can choose a leasehold basis under your name, which is common and naturally legal under Indonesian law. Leasehold properties are usually contracted for 25-30 years (or more) and can either be used for long-term personal holiday rental or as a yearly rental business.