Bali is one of the most beautiful places on Earth, and it’s no wonder that people are drawn to its tropical beaches and lush jungles. If you’re thinking of buying property in Bali in 2023, this guide is for you!
In it, we will explore everything you need to know about this exotic destination and its real estate market, from the best places to buy property to the type of properties available. We will also provide some expert tips on what to look for when purchasing property in Bali.
So, whether you’re a first-time buyer or a seasoned investor, this guide will give you all the information you need to make the best purchase in Bali.
1. The Best Places To Buy Property In Bali
While Bali certainly isn’t the biggest island in Indonesia, it’s certainly the most popular one, and for good reason. It offers a stunning array of beaches, jungles, rice terraces, and temples, as well as a vibrant nightlife and culture scene. All of this makes it an appealing destination for both tourists and those looking to purchase a property.
When it comes to purchasing property in Bali, there are a few key areas that are particularly popular with buyers. These include:
Seminyak is a chic and trendy area that is popular with both locals and tourists alike. It boasts a wide range of restaurants, bars, and cafes, as well as some of the best beaches on the island. It’s also home to a number of luxury villas and apartments, making it an ideal location for those looking to purchase a property in Bali. To be fair, you will have to cough up a bit more cash for a property in this area, but we feel like it’s worth it.
Canggu is arguably the most desirable place in Bali right now. It’s a laid-back surfer village that has managed to retain its cool, bohemian vibe despite the influx of tourists over the years. When it comes to shopping for villas and houses, you should keep in mind that many of the properties in this area are located somewhat far from the beach, so if your goal is to be within walking distance of the sand, you might want to shop around for a while until you stumble upon a property you like.
Pererenan is a beautiful seaside village that combines lush green rice fields with stunning surf breaks, set against a backdrop of dramatic black sand beaches. Blending in with the trendy town of Canggu, Pererenan is gradually becoming more popular but still has a more relaxed Balinese vibe to it. The area is favored by expats, so if you’re thinking about moving to Bali, this might be the area to aim for.
2. Property Value Predictions And Recent Trends
This is probably one of the most important sections for anyone looking to purchase property in Bali, as it will give you an indication of what your money can buy you, as well as how much the value of your property is likely to appreciate over time.
As you can imagine, Bali has become increasingly popular over the years, and this is reflected in the prices of its properties. In recent years, there has been a steady increase in the value of Bali real estate, and this is expected to continue in the future. If you want to learn more about why do experts feel this way – feel free to do your own research. Here’s how it seems to us.
Of course, predicting the future is never easy, but we feel that now is a good time to buy property in Bali. Over the last two years, real estate prices jumped up anywhere from 20 to 40% in certain areas of the island, and the skyrocketing doesn’t seem to be stopping.
On top of it, in order to encourage and stimulate the high-end real state market, the 20% luxury goods tax is now only applicable on purchase prices starting from IDR 30 billion (approx. 2 million USD).
3. Can Foreigners Purchase Properties In Bali?
Here’s where it gets tricky. A non-Balinese citizen is NOT able to purchase a freehold (land) in Bali. So, no matter how much money you have, you can’t just show up, open the briefcase and say “I’ll take it”.
What you can do, however, is purchase a property through a nominee arrangement. This is where a Balinese citizen agrees to hold the land on your behalf. It’s important to note that this person will be the legal owner of the land, and as such, this whole arrangement can be a very risky business. So, don’t do it unless you REALLY trust the person.
However, there’s another way to get your hands on a luxury home, and it only requires you have a company to your name. You can purchase a villa or an apartment as long as it’s through a PT PMA (foreign investment company).
This type of company is 100% foreign-owned, and as such, you’ll be able to own the property in its entirety. You will, however, have to jump through a few hoops to get there, so it’s important to seek professional help before going down this route.
4. What To Look For When Purchasing Property In Bali
Now that we’ve gone over some of the key things to consider before purchasing property in Bali, it’s time to give you a few expert tips on what to look out for when buying a property in Bali.
First and foremost, it’s important to have a realistic idea of your budget. Keep in mind that prices for properties in Bali can vary greatly depending on the location, size, and type of property you’re looking for. It’s important to set a budget and then stick to it, rather than allow yourself to be swayed by an expensive property that you can’t really afford.
It’s also important to be aware of the fees and taxes associated with purchasing property in Bali. These can include a tax on legal documents, acquisition tax (a tax on the purchase price of the property, which is usually around 10% split down the middle between the buyer and the seller), or the aforementioned luxury good tax if you do decide to splurge on a 10 bed 10 bath villa. There are also annual taxes that need to be paid, whether you’re leasing or owning a property, but these fees are extremely low.
Finally, it’s always a good idea to hire a reputable and experienced real estate agent when purchasing property in Bali. They can help you navigate the complicated legal process, as well as offer advice on the best way to protect your investment.
There you go. That’s everything you need to know about buying property in Bali in 2023. Hopefully, you’ve found this guide helpful. Take care!