Bali Villa Buying Tips

LOCATION

DO:

Choose a place you enjoy, so other foreigners (potential tourists to your villa) would like it too! Just like in any real estate investment location is the most important aspect. Target Seminyak if you are looking for safe returns; the investment will be twice as much as it is in Canggu, but the returns will come much sooner. The north of Bali is now much more established. There are several projects and the prices are increasing.

DON’T

Don’t buy land or a villa that is far away from the sea. On the Bukit Peninsula, we’ve seen hundreds of villas branding themselves as being in Uluwatu or Palangan, but they’re only 5 kilometers from the ocean. That doesn’t work. The same goes for the Canggu and Kerobokan rural areas on the east side of Jalan Raya Canggu. The majority of tourists coming to Bali are searching for a villa near the beach and for surfing. Very few tourists can compromise on the distance from the beach. Be sure to acquire a Villa that is peaceful away from the rumbling sounds of traffic. Villa Yoga, which is both quiet and at the center of Seminyak, is a perfect example.

BUDGET

DO:

Put some money in your villa. If you build in Bali, depending on the standard you are aiming for, the construction price should be about 400 to 800 USD per square meter. Construction does not include the price of finishes and furniture, so to prevent any unwanted surprises, add another 50 percent to the construction price! Planning on renting your villa out? Be sure to get a villa manager, staff and a good photographer as well. Remember that service and hospitality are key points for tourists searching to a place to stay in Bali. For additional info , be sure to check out our guide to invest in a Bali villa.

DON’T

Be sure to do your market analysis and research and it’s important not to overpay. Depending on your place and your ability to market the villa, your villa can typically be repaid within 6 to 8 years of rental. Trusting agents and advertising boards that promise returns of 20% is a bad idea.

AGENTS

DO:

Before before any Bali villa buying processes start you should arrange to meet with agents who own a legitimate company with a proper office and recognized name in the market. An agent that can direct your moves through the entire process of obtaining your construction permit, securing access to your property and pointing you to a good notary for the transaction is the agent you are looking for. If an agreement with an agent is concluded, be sure that the agent possesses a contract with the owner of the land or villa you are targeting.

DON’T

A good thing to remember is that agents who propose you to purchase or rent a piece of land or property for their “friends” will most likely try to trick you in some way. To have good Bali villa buying experience you should have reliable agent or company. If complications arise, they will not be there before or after the deposit payment has been made, as they have no legal right to assist you in the transaction. Once again, a successful agent has a contract with the land or villa owner (or his / her official representative) and will assist you all throughout the process of construction.

BALI VILLA BUYING LEGALITY

DO

The only way to do it legally is as follows: to be able to build the villa itself one must have a Building Permit (IMB – 3-6 months to issue) and a rental license (PONDOK WISATA – guest house license). These are issued separately and do not influence each other.
Be ready and informed. Be sure when buying property that the neighborhood’s zoning is not agricultural or green, as this would make it close to impossible to get an IMB. (Jalan Sunset will one day be extended by Canggu!) Search whether there are any roads or development projects to be built around the villa. Again, you will be directed through the entire legal process by a good agent. If you need a recommendation for a respectful agent or a good notary, do not hesitate to contact us.

DON’T

The law of Bali clearly states that a foreigner cannot own property in Bali therefore do not buy freehold. The only way is to lease your land or villa in Bali. Avoid buying land in a green zone, avoid illegitimate agents. Do not but a villa that has no IMB.

We hope that these tips will make your buying Bali experience better.