Bali Property Buying Checklist

1. Bali property buying location

Deciding on the location is the one first decisions you will have make. Whether you are settling in or planning to rent the residence out for passive income you should always inspect the location and the surrounding general area and other residences yourself. This way you could get a lay of the land.

It’s always a good idea to get information about any future project for the general area you are interested in.

Depending on your needs you should choose the appropriate location. If you are planning to rent the place out, be sure to take a look at tourist hotspot locations such as Canggu and Bukit. These places have available plots close to the beach, rice fields and other picturesque locations.

2. Villa Size / Land Size

A general rule is that the closer you are to the city center the smaller the villa, the further away into the greenery of the island the larger the villa. Of course this doesn’t always apply depending on the district. If your plot of land is large enough for two villas you should consider building two. Depending on the purpose of the villa you should keep in mind that if these are going to host separate clients each villa should have a separate garden, swimming pool entrance-way, etc.

These is an alternative to large properties and that is a “destination” villa.

It is a high-class 5 star hotel equivalent villa with various facilities and services. From massages to large variety of food choices. These types of villas can host weddings, birthdays, anniversaries, corporate parties etc. Therefore setting a goal and a purpose for your villa is an important first step as it will assist you in your marketing projects.

3. Soil Characteristics

If you plan to build any kind of villa the soil on which the villa will stand should be appropriate. Therefore a Soil Investigation Analysis should be conducted to ensure the rigidity of the ground. You wouldn’t want your finished villa to start breaking into pieces.

4. Road Access

Take into consideration the type of road and it’s condition that is joining your driveway and the public road. Be sure that road is public and not privately owned.

5. Accessibility

Have in mind that most tourists (your future clients) prefer to be close to the beach, shops and restaurants. Ensure that your street is wide enough to be convenient. Silence is also a factor, therefore finding out if your street is quiet or not is key. This important to know when choosing a location for your villa.

6. Land Certificate

There are many aspects that need to be looked into when inspecting a plot. This should be done with a notary or a lawyer. Generally the most important things to triple check are if the land certificate is pointing to the proper plot and that all certificate numbers are matching. Also check the land parameter documents to find out the actual size of the plot. Basically ensure that all legal documents are adequate, properly signed and matching your needs.

7. Land Use Restrictions / Zoning

To be able to build a structure on a piece of land you must get a Building Permit (IMB). This permit is only issued if the land is in the proper zone (residence, green zone, agricultural etc.) In Indonesia your villa must not be taller than the closest temple. There are other similar limitations therefore be sure to have your legal guides assists you in this matter.

“Setbacks” regulate the protection of various natural formations, man-made structures, roads and temples by measuring the distance from your villa to them. These include cliffs, flood-plains, beaches, rivers, roads, streets etc. Other regulations apply to buildings, fencing, landscaping and potential hazards to the environment depending on the zoning, jurisdictions and laws of the local municipality. Therefore be sure to discuss these and all other regulations with your lawyer.

8. Community Relations

A Banjar is a council that is in every single Balinese village that is responsible for the community work, social welfare services and the maintaining the local traditions. Their decisions are autonomous therefore it is a great idea to notify the council of your plans right from the beginning. Many westerners are often greeted with warmth and support by the locals especially if the foreigners take part in the community work and activities or simply provide monetary support.

Some members of the Banjar are quite difficult to relate to therefore having a local Indonesian who understands local traditions and dynamics and who can assist you in the process is key.

9. Water Supply

Be sure to check if there is a connection from your villa to the local Water Supply Company PDAM. If there is no then you have other options to get water: dig a well deep enough to get a clean and constant water supply throughout the seasons (rainy and dry); schedule a water truck to transport the water to your villas water storage tank (in case your villa is very remote).

Water towers are sometimes seen in villas in Bali. The main issues is that the water pressure is usually too low and not suitable foreigners and that the pumps that move the water from and to the tower depend on electricity (which has outages daily) therefore installing a backup generator is important.

We suggest that you get local experts to evaluate the situation of the property that you have targeted.

10. Electricity

Also be sure to check if the property you are looking into has a connection with the local electrical grid and the National Electricity Company (PLN). If there is no, then the price for installing a connection to the main grid would depend on the distance to the local grid and the desired wattage.

As mentioned before, power outages and voltage drops of natural and unnatural kind a common. Therefore it is important to install voltage regulators and backup generators to prevent any damage to your belongings especially those of your customer’s.

11. Drainage

Check the condition of the land and current drainage options for surface water runoff in the region (such as the drainage channel adjacent to the road, proximity to discharge points for surface water runoff, such as rivers or streams, etc.). Owing to the combined rapid growth of construction and the lack of sufficient storm water runoff drainage preparation, many areas are prone to flooding in the rainy season.

12. Telecommunications / Internet

These are obviously important to almost everyone, therefore find out if there are land lines for the phone, ability to install fiber optic cables for fast internet, cell phone connection etc. Most of the island supports cell phone signals, 4G and satellite connections. Fiber optics connections can only be installed in the main cities of Seminyak, Jimbaran, Sanur, Canggu and Nusa Dua.

13. Landscaping

There are quite a lot of companies that can provide your garden with fertile soil and year-round maintenance.

As most of the island’s soil is very fertile and sorts of vegetation is bound to grow rapidly.

14. Building Materials

First of all in this field, you must get professional advice.

The building should be assessed by a competent and trained building surveyor, beginning with its structural integrity, electrical systems, machinery, plumbing, ventilation, pest infestations, etc.

With each day more and more western style building materials are becoming available for use.

15. Pests

You have to search for insect infestations if your villa has a lot of wood in its construction. Termites are common and over time can cause a large amount of damage, as well as produce dust throughout the building. Rats are also common in this living thriving green island. Exterminators can assist you in taking care of most of the problems but are not the ones to evaluate the situation properly. For that you need to get assistance from a building surveyor.

16. Beaches

To get a good understanding of the tide level and the safety of the beach you might possibly build your villa by try to talk to locals or expert and find out what is the situation like. If the waters are too dangerous that should be noted. Some beaches have unpredictable tides sometimes calm sometimes wild therefore all this information should be handled carefully.

When the moon is full or new the tide usually engulfs the beach fully making it impossible to traverse on foot. Sometimes the tides gets so high that water goes deeper inland covering large plots of land with water. Therefore premature investigations must be conducted.

As the shores are sandy and salty the air that flows along the beach can be hazardous to paint, wood and various constructions. That is why marine-grade finishing is important to implement in your design. Otherwise maintenance will be expensive and frequent. Again a surveyor could give you all the necessary information before leasing a plot.

17. Natural Orientation & Views

Unlike the northern preference of catching and welcoming as much sun as possible into the home Indonesian style homes are built to deter the heat of the day as is gets really tropically hot. Most desirable homes have east and west facing windows, are usually built on cliffs, beaches, close to rice fields, etc. Using natural resources to one’s advantage is important to keep maintenance low. Villas with great panoramas in high altitudes have high winds that could ventilate the interior and prevent the villa from being built-out. As many people are starting to move to Bali previously natural landscapes are becoming filled with houses. That is why location is important.

18. Swimming Pool

If you are buying a plot with an existing pool be sure to check the tiles, pump quality and drainage for any issues as rebuilding a pool or changing it design and form can be very time consuming and expensive. Poor technicians usually install cheap water pumps that break down fast. Every tile must be solid and not cracked because if so, the damage beneath the surface could be much larger than you can see.

19. Construction & Building Taxes / Licenses

You need to make sure that the relevant building taxes (PPn) have been paid, whether you are the constructor yourself or purchased an existing house.

The construction contractor or developer is supposed to be responsible for this. It’s a commonly abused process, however. Bureaucracy operates especially slowly in Bali, and it may be very hard for you to track down the construction company by the time an official arrives at your home to tell you that the tax has not been charged.

You will need a Pondok Wisata license (rental license) if you wish to rent your house. You must verify that a license exists if you are purchasing an existing location that is still functioning as a rental villa. Some people have been avoiding taxes. But the tax authorities are becoming increasingly more sophisticated and thorough when it comes tracking down illegal renters.

20. Ensure that you deal with experienced, reputable property specialists

Bali property buying can be difficult because there are literally hundreds of Bali real estate offices, the vast majority of which have arisen in the last few years.

We at Balivestor have had numerous opportunities to learn and grow our experience in this field of real estate. We can always provide references from investors and individuals, who have successfully grown their business and continue to do so this day. First-class reputation and experience are key elements to success when buying property in Bali.