Buying a property in Bali can be done by foreigners. However, there are a few rules and procedures that must be considered. In this article you will learn simple steps to buy a villa in Bali as a foreigner.
1. Research: Before you start looking at properties, it is important to do your research. You should have a good understanding of the market, what you can afford, and what you are looking for in a property.
2. Find a reputable agent: Once you know what you are looking for, find a reputable agent who can help you find properties that meet your criteria.
3. View properties: Work with your agent to view potential properties. Be sure to ask lots of questions and get a feel for each property before making an offer.
4. Make an offer: Once you have found a property that you like, make an offer through your agent. The offer will be presented to the seller, who may accept, reject, or counter-offer.
5. Negotiate: If the seller counters your offer, there will be some negotiation back-and-forth until an agreement is reached on the purchase price.
6. Hire a lawyer: It is important to hire a qualified lawyer to help with the purchase process and protect your interests. Your lawyer will help with things like due diligence and reviewing the contract of sale.
7. Sign the contract: Once everything has been negotiated and agreed
If you’re considering buying a villa in Bali as a foreigner, there are a few things you need to know. With the right guidance and by following the proper procedures, you can make your dream of owning a piece of paradise a reality. Be sure to work with an experienced real estate agent who can help you navigate the process and understand all the ins and outs of buying property in Bali as a foreigner. With their help, you’ll be able to find the perfect villa for your needs and make your purchase with confidence.
Leasehold, Freehold, and Hak Pakai
There are different types of land ownership in Bali: Leasehold, Freehold, and Hak Pakai.
Leasehold:
Leasehold ownership is when you purchase the right to use the land for a certain period of time, typically 20-30 years. After the lease expires, the land reverts back to the owner. This type of ownership is popular for foreigners who want to own property in Bali, but don’t want the hassle or expense of buying freehold property.
Freehold:
Freehold ownership is when you purchase the property outright and have full ownership rights. This type of ownership is more expensive than leasehold, but it gives you complete control over your property. You can do whatever you want with it, and it will remain yours even after you die.
Hak Pakai:
Hak Pakai ownership is when you purchase the right to use the land for a certain period of time, typically 30 years. Unlike leasehold ownership, Hak Pakai can be renewed indefinitely and passed down to your heirs. This type of ownership is popular with Indonesian citizens who want to own property in Bali.
Hak Guna Bangunan for PT PMA (Right to build)
In Indonesia, there are four types of land ownership: Hak Guna Bangunan (HGB), Hak Milik (HM), Hak Pakai (HP), and Hak Pengelolaan (HPL).
PT PMA is an HGB title. This means that the owner has the right to use and improve the land, but not to sell it. The government grants this type of title to foreign investors who want to build a business in Indonesia.
The main advantage of having an HGB title is that the investor can get a building permit and own the property outright. There are no restrictions on how the property can be used, so the investor can develop it as they see fit.
Another advantage is that HGB titles are typically cheaper than HM or HP titles. This is because the government wants to encourage foreign investment, so they offer lower prices for HGB titles.
The downside of HGB titles is that they can be revoked by the government if the investor doesn’t follow through with their plans. For example, if an investor gets an HGB title but then doesn’t build anything on the land within a certain period of time, the government can take back the title.
Overall, HGB titles are a good option for foreign investors who want to build a business in Indonesia. They are less expensive than other types of titles, and there are no restrictions on how the property can be used. However, it
Is buying a villa in Bali a good investment?
If you’re looking to invest in Bali real estate, a good investment will give you a return on investment in 5-8 years when renting out. Depending on occupancy and rental price, you could see a healthy return on your investment.
When considering an investment in Bali real estate, be sure to do your due diligence and consult with a qualified professional to ensure that you’re making a wise investment.
Also read: Company Registration
See also; Bali Income Property 101
