Are you looking for for a Bali real estate villa? If you're not familiar with Bali, it's widely heralded as the premier place to go in the archipelago of Indonesia. Bali is the home to a very ancient culture that is famous for hospitality and warmth.
Throughout many hundreds of years, the charm and grace of Bali and the people that are native to it has earned the small Indonesian island a wealth of homage and praise, including such descriptive names as the Land of a Thousand Temples, The Last Paradise, Morning of the World ,Island of the Gods and even earned it the title the Most Desired Travel Destination.
The landscape features an amazing variety of scenery, including rugged coastlines, sandy beaches, hills and mountains, barren volcanic hillsides and beautify rice terraces. These unique and varied features provide a backdrop that's picturesque, spiritual, colorful and highly unique throughout the world.
Bali truly does stake a claim as a true-life paradise.
It's also one of the world's most popular travel destinations because of its sheer number of historical and cultural areas that are so beautifully set within natural settings and glowing backdrops including deep-sea diving and surfing.
But Bali isn't just for vacationers looking to escape the doldrums of the "real world." It's also an amazing place to live and own property. Here, you'll learn everything about what Bali has to offer and how you can realistically make it your dream home by buying your own villa right in the heart of paradise.
All About Bali
The Bali province of Indonesia has a total land area of about 2,231 square miles, or 5,780 square kilometers. The province is comprised of the main island of Bali, along with several smaller islands that neighbor it, including Nusa Lembongan, Nusa Ceningan and Nusa Penida.
Bali is known as an extremely popular vacation destination. Many people throughout the world have heard the name, but still don't know exactly where it is located. When looking at a map, you'll see that it is just 4 hours flight (4,555 kilometers) north of Australia, situated in the Java Sea between the islands of Java and Lombok.
The population of Bali is a bit over 4.2 million people, with the vast majority (90%) practicing Balinese Hinduism as their main religion. The remainder of Bali's population practice Islam with a small minority consider themselves to be Christian.
The main ethnic groups you'll find in Bali include Javanese, Baliaga, Madurese and Balinese. Because of the island's highly developed culture, leisure and art scenes, it is known as the most popular place in Indonesia for tourists to travel. It attracts countless thousands of travelers each and every year.
When looking at the regions of Bali, the main areas include:
In the south of Bali, Kuta is widely known as the party destination of Bali. While in the central part of Bali, Ubud is the island's cultural hub. Ubud is the perfect place for new investors to buy a Bali villa.
Also in the southern region, Seminyak is a popular tourist hub. Legian is as well, which is a little farther south of Seminyak.
Are you looking to be spoiled by complete luxury and overwhelming peace and quiet? Sanur, just outside of the capital Denpasar is the place to visit. In Nusa Dua, travelers will find a high-end atmosphere right on Bali's southeastern coast.
Boasting such a wide array of culture, natural attractions, art and history, the biggest question shouldn't be should you go visit Bali. The question needs to be, when's the soonest you can see this magical island and should you own a piece of this paradise?
What Makes Bali the Most Desired Travel Destination?
Hundreds of thousands of people absolutely rave about the vacations and holidays they've taken to this much-sought-after destination. This probably has you wondering what all the excitement is about?
To help answer that question, we'll take a look at eight reasons why Bali is a location that everyone needs to visit. And for those who feel that just visiting Bali once isn't enough, these are also the reasons why you may want to own a piece of this paradise and own a private villa in Bali as your investment home.
1. Mouth-Watering Food
For foodies, Bali is the ultimate destination. The variety of Indonesian food Bali offers is enough to add spice and excitement to any pallet. The food of Bali is slammed full of flavor, incredibly tasty and more vibrant than almost anywhere else in the world.
Even better, it's ridiculously inexpensive. A full lunch with a fresh squeezed fruit smoothie, a main dish and a dessert can cost just $3 dollars.
Whether you're looking for fine dining in Ubud, or would rather eat like a local in a diner in Warung, Bali's food scene has you covered.
2. The Culture
The culture of the Balinese is greatly influenced by history and the centuries-old arrivals of merchant ships from India, the Dutch and China. Bali is world-renowned for having a culture that's rich in the arts, which is showcased in the costumes they wear and how they celebrate dance.
Festivities and ancient temples are influenced by Hinduism. It's important to remember that, as a visitor or new full-time resident of Bali, their religious practices and culture are very important to them. Always do your best to respect this. During sunsets, go see the Kecak dance (fire dance) in Ubud or Uluwatu, you'll see an excess of 50 men impressively performing in perfect rhythm around a large bonfire.
If you're going to temple, get a sarong to over your legs and show respect to the local culture and prayers.
3. Adventure Awaits
If you're into fitness and health, surfing, yoga or adventures in general, Bali is the place to be. Swim with the sea turtles while diving off Bali's Gili Islands. Jump on Gili Meno's glass boats and snorkel through the amazing coral gardens.
If you're looking for some of the best surfing in the world, head to Kuta and meet up with some of the local pros.
And when you're looking for even more adventure you can head to Mount Batur and hike up to the summit during the sunrise where you'll see vast views of the Island's volcanos.
Bali also features picturesque waterfalls, the best of which is Tegenungan Waterfall which is about 30 minutes away from Ubud.
4. Handmade Crafts and Unique Woodcarvings
As a whole, Bali is well-known for local handmade goods, artwork, painting and woodcarvings. To find the best, and least expensive places to buy these local treasures, head to Ubud. Here, you'll find affordable clothing, unique wooden creations, handmade candles, incense, sarongs and moisturizers.
5. The Local People
In general, the Balinese are extremely friendly and welcoming. Before landing in Bali, take a little time to learn a few local phrases, such as "Selamat Pagi," which means "good morning," and "Apa Kabar," which means "how are you?" Learning a few words of the local language will definitely make for an enhanced overall experience in Bali.
Then, learn to barter and negotiate like the locals do. While some prices at the markets might be overly inflated, it's common practice to negotiate with sellers. Begin at one-third the asking prices and negotiate from there.
6. The Rice Paddies and Abundance of Nature
To best describe the tropical surroundings of the Bali Islands, you might say that it's fifty shades of green. Here, you'll experience:
Rice paddies that are always green
Mountainous ranges of jungle
Beautiful, lush waterfalls
Old temples filled with roaming monkeys
To see the most beautiful rice paddies, head to Ubud where you'll also be able to take in the Sacred Monkey forest. After this, there's the Bebek Bengil that features the most delicious crispy duck you've ever tasted while overlooking the rice fields.
7. Impressive Nightlife
Bali features a nightlife that goes above and beyond world-class. Here, there is no shortage of live music, high-energy DJ's and rooftop clubs. If you're looking to party to some of the best views of the sunset, head to Seminyak's Potato Head Beach Club or Uluwatu's Single Fin.
8. The Gili Islands
To see a more raw version of paradise, head to the Gili Islands. The natural vibes here are like no place else in the world. To take it all in, visit all three of the Gili Islands, which are Gili Air, Gili Meno and Gili Trawangan.
The Gili Islands are one of the best places in Bali to take in a sunset you'll never forget.
Why Bali Is One of the Highest Performing Real Estate Markets in Asia?
Bali real estate performs better than almost any other real estate market in Asia. There are many reasons for this, which we'll look at in detail.
The first reason Bali has such a high-performing real estate market is due to the overwhelming support the islands receive from tourism. In fact, in 2017 the tropical destination was given the prestigious "Most Desired Global Travel Destination" distinction by TripAdvisor. Because of this and the many factors we've already covered, Bali hosted more than ten million tourists in 2018 alone.
While tourism has been growing at an average annual rate of 10.1%, the property values in Bali have averaged an increase of 14.8% each year for the past five years consecutively. And they continue to increase as we get into 2020 and beyond.
The question is, why?
First, it's important to note that, being an island, Bali has a limited amount of land. This makes the values of properties surge in a time where traveling by air is less expensive and the visitors of more and more nations are able to discover the beauty of the area.
Picture a new tourist that experiences all that Bali has to offer; the complete serenity, overwhelming beauty and unique culture. Visiting Bali just isn't enough for a lot of these tourists. They want to own a little piece of this paradise themselves.
It's also important to note that the middle class in Indonesia is growing at an unprecedented pace. Indonesian people are becoming more wealthy than ever before in the history of the region. In fact, there are more millionaires living in Asia than in anywhere else on Earth. These wealthy individuals are actively seeking out vacation homes and private villas nearby and Bali is the perfect location to look for houses for sale.
Bali is one of the highest-performing real estate markets in Asia for several more important reasons:
The costs of owning a property is relatively low (Bali real estate villas are inexpensive)
Taxes in Bali are less than in other areas of Asia
Property owners can earn steady and solid passive income from their private villas
Annual return on investment averages between 10-15%
Bali truly is a paradise. It is referred to as "The Island of Gods" for a very good reason.
Even though Bali has an ever-increasing number of tourists and high-end places to visit, it's also filled with vestiges of old-world Bali in its rice paddies and small villages that surround them.
The real estate market in Bali outperforms other Asian real estate markets because it provides better passive income, has homes for sale with high appreciation rates, makes property owners happy just knowing that they own a piece of paradise, and gives Bali luxury villa owners bragging rights with colleagues and friends.
There is no better place to buy a dream villa than on the island of Bali.
How to Look for Real Estate in Bali
When looking for Bali property for sale, the first thing to do is to consider the location you want your private villa to be at. You'll find Bali homes for sale throughout the island, but you want to find a private villa that best suits your needs and budget.
Don't waste time looking at Bali houses for sale or villas on the market that don't fit exactly what you're looking for. For example, if you are looking for an investment property, don’t look at North West Bali where a very small percentage of tourists visit.
When choosing an exact location, you'll want to do a complete overview of the areas you're looking at. Certain areas of Bali are more expensive and can be considered “Party Towns” , flooded by rowdy tourists that can damage your property. You might want to looking for areas that have calmer environments, lower entry prices and greater potential for growth.
To that point, let's take a look at some of the more popular areas to buy in Bali that have Bali property for sale.
This cultural center of Bali is becoming a highly popular place to invest in property. The weather is cooler and friendlier here than in other areas of Bali because it's located closer to the mountains. Ubud villas are perfect for buyers who want to escape the heat while being surrounded by majestic views of rice fields and mountains.
Ubud has a famously relaxed lifestyle while giving people exposure to the local arts, culture, healing and yoga. Ubud has hundreds of restaurants of all cuisines from around the world and therefore attracts the majority of tourists for 2-7 days during their visit to Bali.
Here, a two-bedroom Bali private villa ranges from $125,000-$250,000 (USD). Ubud’s Bali homes for sale are quite affordable in Ubud. This is the most recommended place to start your search for a Bali real estate villa as it has the greatest bang for your buck with the highest growth potential.
Canggu's coastline is nearly twice as long as the coastline of Sanur. It can be found in Bali's southern region and is one of Bali's most popular areas for young travelers.
Canggu has many cafes and is quite a relaxed area, much like Sanur. It's also a very popular area for surfing enthusiasts. Because of the gorgeous landscapes and rice paddies, many luxury villa investors make the decision to buy a villa in this region of Bali.
In Canggu, a two-bedroom villa ranges from $375,000-$500,000 (USD)
Sanur is somewhat overlooked by many buyers. However, it's a much more relaxed environment than Kuta or Seminyak. Sanur is located along a southeastern coastline that about five kilometers in length.
Here, you'll find a multitude of bars and restaurants. Property owners in Sanur will be able to meet and become friends with more locals because the streets aren't flooded with foreign tourists.
For a two-bedroom Bali private villa, prices in this region start at around $400,000 (USD) and go upwards from there.
D. Kuta & Seminyak
Kuta beach is known as one of the most popular areas for resort travelers visiting Bali. Kuta & Seminyak are found in Bali's western region and is very close to the Ngurah Rai International Airport.
A little north of Kuta, Seminyak is the place to go if your pockets are deep. In fact, Seminyak is now considered to be the most overvalued and upscale place in Bali, even though it came from very under-developed beginnings.
Bali houses for sale won't come cheap here, however. For a two-bedroom Bali private villa, expect to see prices starting at around $300,000-$650,000 (USD).
Start Your Search With a Professional Bali Real Estate Service
Because of Bali's popularity among travelers and property-seekers, Bali has a large number of multi listing sites that lists Bali real estate villas. However, many of the local agencies are interested to just sell you a private villa so they are happy to show you everything that exists and have you spend the time seeing 30+ Bali real estate villas that might not fit your budget and needs. They also don't necessarily focus on the specific areas of Bali that can generate you, the foreign investor a high return on your investment.
Alternately, you can save time and money, by using the Bali real estate service www.BuyBaliVilla.com. This service, that started in 2007, has a sharp focus on foreign investors and their need for high return on their investment. It does the research for buyers and tailor their search to the best three private villas that fit their needs and have the highest possible ROI.
This saves property buyers time, money and frustration. It also lands you quicker the Bali villa of your dreams.
It is very important to start your search knowing exactly what your budget limit is. Why? because the Indonesian bank will not be able to provide a non-Indonesian citizen (i.e. foreign investor) financing in a form of a mortgage or a loan to pay for the Bali private villa. Therefore, you will need to have the full purchase (not just 10% to 30% that allow buyers to get up to 90% financing in some Western countries) price available to be wired to the seller to close the purchase of your Bali private villa.
This usually means that unless you have $500,000 in cash in your bank that is earmarked for investment, you shouldn’t look at $500,000 Bali real estate villas. If you have only $200,000 in cash available for investment, limit your search to properties under $200,000 in value, otherwise you are spending your time looking at Bali luxury villas that you can not afford.
What Is the Process to Buy a Villa?
You need to be aware of an important element of the real estate market in Bali. The Indonesian government prohibits the sale of land to non-Indonesian citizens. Therefore, you will not be able to own property in Bali under your individual name. Instead there are two common options by which you can buy a Bali private villa. Let's look at them in detail so that you can decide which is best for you.
1. Signing a Leasehold Agreement
As you cannot own the land and the property built on it, you can instead Lease it for a very long period of time, which basically replaces that need of owning the land and property (as most investor buy, hold of a period of 5-15 years and then sell to gain from the property value appreciation.
With Leasehold agreement you lease the property (the land + villa built on it) for an initial period of 20-30 years with an additional option to extend the lease for another period of up to 30 years (total 60 years which is more than enough for investors)
The Leasehold process comes with as little risk as possible, and you'll have the freedom to sell the property when you're ready to another buyer. It's the best way for foreign investors to get their own piece of paradise without a lot of hassle.
This is the option that the majority of investors choose to go with who are looking for Bali homes for sale. It is the fastest, easiest and more affordable way to own a private villa in Bali and is highly recommended.
2. Buying a Villa With a Freehold Title
Keep in mind that, as a foreigner, you aren't allowed to purchase and directly own a freehold property. However, there are ways to circumvent the limitation and indirectly have ownership of a freehold property. Unfortunately, it comes with risks and significant costs that can be avoided with a Leasehold Agreement.
One way is through contractual setup with a local Indonesian individual. To do this, you'll need to find an Indonesian person or corporation (referred to as a representative or nominee) to act as the title owner.
You can try to identify a local Indonesian that will sign on the contract and “own” the private villa in Bali but that is usually a recipe for disaster as they can “claim” the property for themselves at anytime in the future as the property is legally under their name and you need to trust them that they won’t cause any problems and won’t extort you for additional fees down the road.
Alternatively, you can also create a local company that will own the property (it's a timely and costly process that involves a lawyer with ongoing tax and reporting implications). The process of PMA incorporation (establishing a company) for right-to-use titles will take a lot of time to complete. It is also quite expensive and will require a complete business plan and details of your proposed operations within Indonesia.
Due to the above limitation, we DO NOT recommend to purchase a Freehold property to first time investors who are looking for Bali real estate villas. Investors can achieve their investment goals via a Leasehold agreement in a cheaper, faster and less complex manner.
If you are still adamant on buying using a Freehold Title and want to get more details on how this process works, connect with a Bali property-buying expert.
The Best Way to Buy a Villa in Bali
The best way to buy a private villa in Bali is to enter into a Leasehold agreement.
The purchase process to buy a Bali villa is relatively simple and should be completed, on average, in 4 weeks from the start of your research until you can own your dream villa in Bali.
Below are the steps:
Research a villa that fits your budget and provides high Return-On-Investment (start here)
Once you decide on your wanted villa contact the agent and express your interest.
The agent should provide you additional information about the villa including income information to support the return-on-investment.
The agent will send you a Memorandum-of-Understanding (MOU) that details the deal terms (asset description, price etc.)
Once you reviewed, commented and eventually approved, the MOU can be signed by you and the Seller.
A Deposit of 20% of the purchase price is wired to the Notary (a neutral lawyer) escrow account for safe keeping. The Deposit takes the villa off the market.
The Notary starts Due Diligence to make sure the villa has the proper rights and no leans (usually two weeks process).
A Leasehold Agreement is drafted by the Notary and sent for the Buyer and Seller for review and approval.
If Due Diligence comes clean (no leans), the Buyer and Seller meet at the Notary office (or through power-of-attorney) to sign the Leasehold Agreement.
The balance of the purchase price (80%) is wired to Notary’s escrow account.
Notary releases escrow of the full purchase price to the seller
Notary declares ownership is fully transferred to the Buyer and the Leasehold Deed is provided to the Buyer – The Buyer owns the villa lease rights.
Notary will notify the Villa’s management company of the purchase and introduce the Buyer to the management company.
All future rental income is received by Buyer.
Is It Time for You to Own a Private Villa in Bali?
Now that you're equipped with all of the information you need to buy your own dream Bali villa, is it time for you to pull the trigger? Of course, only you can answer this question.
Remember that owning your dream villa in paradise is only a month away and a good place to start the process and pick your dream villa HERE.
Frequently Asked Questions
1. Do I need a visa to buy and own a property in Bali?
No. If you are a foreign investor living at your home country you can just buy a villa and rent it , you'll have no need to have any particular visa. If you come to Bali to stay as a tourist or to live in Bali for a longer period of time, then you'll need to arrange a visa which we can help you with your options.
2. Can I open a bank account in Bali?
It's quite easy to open a bank account in Bali. The process is very fast. However, your physical presence will be required in order to do so. You'll also need a sponsor to do this. You can use your real estate agent as a sponsor.