Author Archives: Bali Legals

Purchasing property in Bali can be an attractive investment option for many reasons, including the island’s booming tourism industry, tropical climate, and natural beauty.

However, there are a few things to keep in mind before making a purchase.

Firstly, it’s important to note that as a foreigner, you cannot legally own land in Bali. Instead, you can purchase a long-term leasehold, which grants you the right to use the land for a predetermined period of time, typically 25 to 30 years, with the option to renew.

Alternatively, you can set up a foreign-owned company and purchase the land through that entity. It’s recommended to seek professional legal advice from us at Bali Legals before making any purchases to ensure compliance with local laws and regulations.

Secondly, be mindful of the location and type of property you’re interested in purchasing. Popular tourist areas such as Seminyak, Canggu, and Ubud tend to have higher property prices, while more rural areas may offer more affordable options. Consider the purpose of your purchase – whether it’s for personal use or as an investment property for rental income – and choose a location accordingly.

Thirdly, it’s important to research the developer or seller before making any payments. With our due diligence we check their credentials and reputation, as well as any licenses or permits required for the development or sale of the property. Ensure that all documentation is in order and that there are no outstanding issues such as liens or disputes.

Fourthly, factor in additional costs such as taxes, legal fees, and maintenance costs when budgeting for your purchase. It’s also recommended to have a contingency fund in case of unexpected expenses.

Lastly, keep in mind that the property market in Bali can be volatile and subject to fluctuations. It’s important to have a long-term perspective and not solely rely on short-term gains. As with any investment, there are risks involved, so it’s important to do your due diligence and seek professional advice before making any purchases.

In summary, purchasing property in Bali as a foreigner requires careful consideration and research. Seek professional legal advice from Bali Legals and choose a location and property type carefully.

Want to live in Bali? Get in touch with Bali Legals to discuss your visa requirements.

When weighing the choice between renting or buying a property in Bali, it’s essential to consider various factors tailored to your unique circumstances, financial standing, and long-term aspirations. Here’s a breakdown to guide your decision-making process:

Renting a Property in Bali:

Flexibility: Enjoy the freedom to relocate more readily if plans change or if you wish to explore different regions of Bali.

Lower Initial Costs: Renting typically entails lower upfront expenses compared to buying, as there’s no hefty down payment or mortgage commitment.

Maintenance Coverage: As a tenant, major maintenance and repair costs are usually the landlord’s responsibility, sparing you from property upkeep concerns.

Short-Term Living: Renting suits those with short-term Bali stays or individuals not yet ready for a long-term property commitment.

Buying a Property in Bali:

Investment Potential: Property ownership in Bali can serve as a lucrative investment, potentially appreciating in value over time.

Stability and Ownership: Owning a property provides stability and a sense of security, allowing you to establish roots and customize your space.

Rental Income Opportunity: If you opt to rent out the property during idle periods, you can generate rental income to offset ownership expenses.

Personalization Freedom: Homeownership grants the liberty to personalize and tailor the property to match your lifestyle and preferences.

Factors to Weigh for Renting or Buying in Bali:

Legal Compliance: Understand the legal obligations and regulations for foreign nationals renting or purchasing property in Bali, accounting for variations based on citizenship and visa status.

Financial Assessment: Assess your financial resources, stability, and long-term objectives to ascertain whether renting or buying aligns with your financial roadmap.

Market Dynamics: Conduct thorough research on Bali’s real estate market to gauge property values, rental potential, and growth prospects, aiding in an informed decision.

Lifestyle Priorities: Reflect on lifestyle preferences, whether it’s stability, customization options, or flexibility, to determine the best fit between renting and buying.

Ultimately, the decision hinges on your individual circumstances, preferences, and goals. For foreigners contemplating property acquisition in Bali, meticulous deliberation and professional legal counsel, such as that provided by Bali Legals, are indispensable. Select your location and property type thoughtfully to ensure a fulfilling investment venture.