The property market in Bali has seen significant growth in recent years. A major reason for the property transformation is the boost in the country’s tourism that has seen more people visiting this island destination. Many of the properties are modern and outfitted with state-of-the-art amenities, which make them very interesting to foreign investment.
A modern villa is certain to make a very appealing place for retirement or even a source of rental income. However, there are many rules and regulations in place in regards to foreigners purchasing property in the country. Let’s take a look at a few key points to consider:
Learn the property ownership structures
The property market in Indonesia is a lot more open to foreign investors than in the past. At one point, the country had laws in place to prevent foreigner ownership. They date back to the time of gaining independence in 1945 after a long period of colonial rule.
However, there are still several ownership structures in place that determine the right to own property. The options that are most feasible to foreign ownership are Leasehold (Hak Sewa) and Right to Use (Hak Pakai). Either of these options is basically as good as having the option to own. For instance, a leasehold certificate can last for a period of up to 80 years.
Additionally, there is the need to show to the Indonesian government that you have an intention to invest, work or live in the country in order to get permission to purchase property.
Use a local real estate agent
If you are looking to invest in Bali’s property market, it is essential to use the services of a professional real estate agent with the right knowledge and understanding of the local laws. Using a local will avoid any misunderstandings when it comes to language skills. Also, the legal system in Indonesia is quite complex, so you will find hiring the services of a local lawyer to be very useful.
Research the property market
With the boom in the local property market, there are several areas that have seen a soar in the land and property prices, such as parts of Petitenget, Seminyak and Kuta. For this reason, it may benefit to look at investing in other areas that present the most favorable returns on the investment. A few of the less saturated places include Tabanan, Canggu and South Kuta. Also, there are plenty of nearby small islands that can offer a great investment opportunity. Make sure to put in the time and effort to identify the best areas that match the available budget.