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For properties for sale in Bali, you may ask about the ROI of freehold vs leasehold, and what property business should you do. Read more to find answers.   When choosing a property for sale in Bali, these questions may come to mind: Should you buy freehold or leasehold? What is the yearly yield and return on investment for either of them? What are the laws associated with holiday or yearly rentals?   In this article, we will share with you an insight on the most recent trend to help you make a sound investment decision.   What does the property market look like in Bali?   There are two distinct ways people can invest in the property market: Holiday rental (monthly rental) Yearly rental   Holiday rentals, as the name suggests, is reserved for tourists who would rent the property for at least one month for purposes that are likely not for long-term living. On the other hand, yearly rentals are most likely reserved for housing or commercial purposes (i.e. office spaces, not for hospitality businesses).   Holiday rentals will require a license called a Pondok Wisata for villas and houses to be used as accommodation for tourists, however yearly rentals do not. Holiday rentals may only receive the permit if they are in the tourism zone.   Although in the past, people were able to sell / rent out their property for a variety of purposes, even switching between yearly rentals to holiday rentals without reporting and obtaining the right permits, recently the government has become more involved in reinforcing the zoning policies.   With a permit requirement, holiday rentals tend to have high operational costs and taxes, due to them playing a role in the hospitality sector. However, this is balanced by high revenue, especially if the property suits the taste of the market segment, located in a high-demand location, managed, maintained and marketed well.   Holiday rentals tend to demand more attention than yearly rentals, so if you cannot invest in time for your properties, we highly suggest to operate in the yearly rental market or hire a property management service.   Buy which properties for sale in Bali, freehold or leasehold?   According to a property trend examiner, Andrzej Barski from Seven Stones Indonesia, there is a growing trend among Indonesian investors to buy leasehold properties for sale, rather than freehold, even if they have the national right (read more: Ownership of Land in Indonesia, for Mixed-Marriage Couples).   High prices of freehold properties drive this decision. A rule of thumb suggests that the average price of a yearly rent on freehold value is 1% – this means one will only make a substantial profit from exit selling the property. This yields an ROI of 8%, according to Barski.   Meanwhile, buying leasehold properties is a safer bet. A 30-year lease costs at least 30% of the total freehold value, but the extra cost of convenience and lower commitment is a great choice for “short-term” property players. As much as 10-12% of ROI can be obtained from a leasehold yearly rental business. An added benefit is the ease to sell the property to the next leasehold holder.   There is more to discuss about choosing the right properties for a sound investment. Drop us an email [email protected] or message us on Whatsapp for a quick response. Bali Coconut Living is ready to provide any information that you need.

Calculate the ROI of potential villas for sale in Berawa. It can help you determine your lowest price for yearly or holiday rentals. Learn more from this post.   Berawa contains a mix of villas for sale to various markets. For those that are relatively new to property investment, we’ll share with you an easy way to determine prices and calculate your return on investment (ROI) using examples from our Berawa villa listing.   What is ROI?   ROI is one of the ways that can help you to determine the minimum price (rate) you can set so that it breaks even after a certain number of years operating. This is crucial if you are buying leasehold properties.   Examples of ROI calculation for Berawa villas, with a few assumptions   In this simplistic set of examples, we’ll make a few assumptions:   1.      Property maintenance will cost half the monthly rate, every year. This the average cost that increases the more expensive the property is. Also, tax and permit costs are excluded.   Our price ceiling is determined by the market. This ensures that we do not overprice the property.   Property is not managed by a manager. We will assume that you take full responsibility of the management.   To calculate ROI, we divide the net annual income by the total amount of money invested in the beginning, which is at least the purchase price of the property.   ROI = (net annual income) / (purchase price)   Rumah Kelly is a freehold property that costs Rp 2,255,000,000 without furniture. This 2-bedroom 2-story villa is located in a suburban area, but the area is popular for foreigners to live and stay. An estimated valuation of this property suggests that tenants are willing to rent it for Rp 85,000,000 annually. Property maintenance is maximum Rp 3.5 million.   ROI = (Rp 85,000,000 - Rp 3,500,000) / Rp 2,255,000,000 = 3.61%   This implies that it takes 28 years for the net annual income to breakeven, and of course, the ROI would skyrocket if you include the property’s sale. For Rumah Kelly, furnishing the property would increase the ROI to at least twice the value.   Rumah Torres is a fully furnished leasehold property that costs Rp 835,000,000 with lease up to 10 years. This gives us a target ROI of at least 10% since we must break even before the property is returned to the owner to avoid loss.   Estimated valuation for this property suggests that tenants are willing to rent it annually for Rp 84,000,000. Property cost is Rp 3.5 million according to our assumption.   ROI = (Rp 84,000,000 - Rp 3,500,000) / Rp 835,000,000 = 9.6%   The ROI for yearly rentals in Rumah Torres in this case is below the target ROI of 10%.   To optimize the ROI, we need to market the property for higher-paying markets. Another solution is to turn it into a holiday rental with higher monthly revenue. It seems that Rumah Torrest is more ideal for holiday rentals while Rumah Kelly is ideal for families living long-term in Bali.   Fortunately, with our helpful agents at Bali Coconut Living, you don’t have to make risky speculations about the type of rental business you should create. Simply consult our property managers and sales to help you decide which property is the best for you. 

Canggu is gaining in popularity among visitors who prefer experience over luxury. Villas must suit their taste, and here are the examples you can acquire.   Canggu is one of the most talked-about towns in the Bali villa property business. It may not be the new Seminyak right now, but it’s rapidly gaining popularity among travelers who don’t necessarily value the sophistication of Seminyak. Canggu is dominated by hip young foreign tourists who value experience over material wealth.   Canggu villas that are for sale must be equipped with the right interior design and furniture. It can make a big difference in comfort provided for tenants. And when it comes to location, Canggu packs a pleasant surprise in every corner of the street, so it’s not necessary to buy villas near the popular tourist hotspots.   Where can your guests stay in Canggu?   1. Villa Rembulan   Located in Kayu Tulang, a pleasant suburban district, this villa is close to many hidden and underrated restaurants and cafes that can be rewarding to your tenants once they’ve discovered them. This three-bedroom fully furnished villa has two floors, so, your villa can accommodate at least three singles.   2. Villa Sekiro 2   Located not too far from a major intersection, this villa is perfect for accessibility to various parts of Bali. To the east and west by following Jl. Raya Canggu, your guests can get all the way to Ubud and Tanah Lot respectively. These two places are major tourist destinations, and the road leading to both locations is generally drivable if the guests do not take a taxi.   This villa is a two-story, fully furnished home. The 100 square meters include a swimming pool, giving this villa added value.   3. Villa Karaniya   Located in the more populous Berawa, this two-story spacious home has a land size of 400 square meters – it’s fully furnished and includes a swimming pool. It offers a “humble but luxurious” living experience and it’s available with a freehold certificate. For foreigners, a long leasehold contract is available.             Things to do in Canggu   1. Plentiful views of rice paddies   Starting from the north of Canggu, you can begin to appreciate rice paddies, which have the same appearance as they have had thousands of harvests before. The truly traditional farming practices can be inspected by many foreign tourists and many villas have taken advantage of this. Restaurants, cafes, and villas are often built around them, to add a back-to-nature experience especially for the majority of Canggu visitors.   2. Surfing in Canggu   Canggu’s long coastline has several beaches: Batu Belig, Batu Bolong, Berawa, Nelayan, and Echo Beach, each with its own characteristic seaside entertainment and surfing waves.   From the mentioned villas above, the closest beach is less than half an hour away. This could be perfect for your guests as they won’t be living in the middle of the crowd where traffic can sometimes make for some difficult travel. However, they would be living close enough to the beach to be able to appreciate what Bali has to offer.   3. Explore Tanah Lot sea temple   While Tanah Lot is not technically in Canggu, the sea temple is accessible. Visitors can expect around 30 to 40 mins by car (a much faster option is a motorbike or online motorbike taxis for around Rp 20,000). Apart from the amazing sunset, Tanah Lot offers an iconic Kecak Dance.   Buy the perfect villa for your tenants   Bali Coconut Living is a real estate agency and villa manager. We are located in Jl. Bumbak Dauh No.89b, Kerobokan, North Kuta. Our agents are happy to show you around our properties Monday through Friday from 9 AM to 5 PM.

Bali's tourism is concentrated in the south of the island, so it's important to pick the right locations in the competitive villa industry. Learn more about our villas here. South Bali is the vibrant capital of tourism in Indonesia, and with thousands of local and foreign tourists flocking in to enjoy their vacations, come numerous houses to buy and sell. This makes South Bali one of the best locations for investment and long-term living.   Some tourist attractions in South Bali   The majority of famous places in Bali that many people can think of are located in South Bali. This includes areas like Kuta, Ubud, Denpasar, Uluwatu, Jimbaran, Seminyak, Sanur, and Canggu.   This is because Ngurah Rai International Airport is located in South Bali. While infrastructure is continuously improving to provide faster access throughout the island, the limited availability of public transportation creates a hurdle for many tourists to visit other places in Bali with low cost.   However, this is excellent news of property owners in South Bali, since tourism will be concentrated in one region. For those who haven’t owned a property here, the cost of buying villas might seem intimidating. However, rest assured that the tenant turnover rate is high in any season, and high rent prices are becoming a norm. Houses can be sold quickly for the next generation of property investors.   Where can you find the best villas for sale with great location   1. The Majestic Studio   The Majestic Studio is part of a larger group of apartments that are for sale – it’s technically a condotel. Where private villas are too spacious for those looking for a budget place to live, long-staying tourists typically pick a more affordable one that is relatively close to the action. This single bedroom fully furnished studio with a shared swimming pool and a garden is cozy for those who value minimalist living.   The Majestic Studio is located in a prime location that meets that specific need. Jl. Petitenget is concentrated with high-end shops and cafes that can justify a high rent price. Within its vicinity lie highly acclaimed restaurants such as KYND Community, Merah Putih Resto, Biku, Bamboo, and more.   2. Villa Cardamon   This villa is amazingly close to the beach and a popular one at that, Batu Mejan Beach. So, just imagine being a guest at Villa Cardamon – Echo Beach Club, La Favela, and numerous other big brands in Bali are within walking distance!   Despite the availability of online taxis, it’s been observed that many high-income tourists would rather walk, essentially considering the area as his or her own incredibly fun neighborhood. These kinds of people are going to be the ones who will pay for comfort and convenience, and Villa Cardamon fulfills the checklist.   There is plenty of space for two guests to call it home. Feel free to request a visit to this fully furnished villa.   3. Villa Impian   This charming villa is available for sale and accommodates at least three people. This rustic, hotel-like villa with a swimming pool is fully furnished, so you don’t have to worry about matching the furniture with the existing interior design.   Taking a walk outside the villa, the guests will encounter many attractions and entertainment, as well as cafes and restaurants to indulge in. Parachute Bar, Finns Recreation Club, and La Laguna are accessible via Jl. Pantai Berawa. For those who brought their families to Bali, the Canggu Community School is conveniently nearby. This can also be an attractive place to live for teachers.   The generous land size of 295 square meters provides a perfect opportunity to gain a slice of wealth in Bali.   Always remember to have the right land permits   To create a homestay or villa accommodation, it’s necessary to obtain the right land certificates and other permits necessary for the legal operation of the business. If you would like to ask questions regarding anything related to villa sales and renting, feel free to contact us!

Leasing is one great way to virtually own a property, which means you are essentially renting the property at a very good rate. Leasing a villa comes with a great commitment. Before you commit to the down payment, it’s wise to choose a good villa for lease with good value for money.   There are many beautiful leasehold villas in Bali in a variety of locations close to schools, city centers, hospitals, beaches, and shopping districts. We have compiled a concise list of villas you won’t regret leasing.   1. Abra Apartment   This 1-bedroom apartment is perfect for those living happy single lives and couples without children. The property is completely furnished, connected to the internet, and well-decorated to inspire creativity. A comfort zone for those who work from home.   The apartment is located in Kerobokan, a place to enjoy a pleasant Balinese suburban life. Perfect for those who seek the virtue of a quiet life. Although, it’s not very far from the popular crowds, so, rest assured that the location is not rural at all.   Come have a look and fall in love with Abra Apartment.   2. Rumah Torres   A comfortable place to work remotely from one of the most popular tourist destinations in the world; that must be a great investment. You can increase your productivity without spending a dime on cafes and coworking spaces. To be leased for 10 years, this single-bedroom house can potentially be your independent HQ for all freelance work.   Another reason that this house has great value is access. Away from the crowded beach towns, you have access to Jl. Berawa and Jl. Raya Canggu to lead you to the rest of Bali – turn right to reach Denpasar, Sanur, and Ubud; turn left to go to the rest of Bali on roads less traveled. Alternatively, simply enjoy your home base or invite your friends and freelance partner over for healthy meals in this lovely spacious 125 square meter property.   Several nearby places of interest are Cabina Bali, La Laguna Beach Club, Fol’lie, and Satu Satu Coffee Company. Not impressed yet, there are many more on Jl. Berawa. Click here to request a visit.   3. Villa Solandra   Located in North Kuta, this simple house in a quaint neighborhood provides everything you need with plenty of space. The perfect home for a family or coliving friends, the two-floor four-bedroom house is available for five years lease. Because of the short lease time, you get the best deal of a lifetime – it even comes with a swimming pool!   Villa Solandra is located in Kerobokan, which borders North Kuta and Seminyak. This means having great access to Seminyak and Denpasar city shopping centers, as well as Ubud’s cultural hub. If you travel further north from the villa, you will eventually reach the famous lake called Ulun Danu. Both the lake and the postcard temple Tanah Lot are without fail the most beautiful places you can get to quite easily. Get your first sunset photo at one of these places!   Learn more about our villas   Our representatives at Bali Coconut Living are only a few clicks away. If you prefer to fill out a contact form, here is the link to our inquiry page. Likewise, reach out to us via telephone at +62 361 847 6727. Tell us about your concerns, such as certificates, permits, or meetings with the original owner. We are here to help!

When it comes to buying villas, the first consideration anyone would make is location. What if we told you that there are high-value villas for sale without relying too much on location?   Advantage of being (slightly more) location independent   Lacking in an extensive network of public transport, almost all Balinese locals and foreigners travel by motorbike or car. Therefore, distance is not too much of a problem for most people, whether they are buyers or renters.   If you are going to have a second home in Bali, it would make a lot of sense to stay in a more quiet and peaceful area where you don’t meet a lot of tourists. Besides, the closer you live near the popular attractions, the less you will appreciate them over time. This paradox is often true!   Two high-value villas that you should check out   1. Villa Kristina   Your best value candidate, Villa Kristina, is located in Sanur. We will be honest to say that Sanur doesn’t look as brilliantly sophisticated and chic as Seminyak, but it’s anything but boring.   The villa has great access to many places of interest. To visit Seminyak, Kuta, and Jimbaran, all you have to do is to follow the Bypass westwards. This will also lead you to the Mandala toll road which gives further access to Uluwatu and Nusa Dua.   Northward, you can travel to Gianyar and Ubud, and the rest of north Bali (visit awesome places like Amed, Amlapura, and Tulamben by following Ida Bagus Mantra Road).   Villa Kristina comes with an indoor swimming pool and great kitchen space to experiment with Balinese cuisine. Note that the place is not furnished yet, but this gives you full control over what goes into your house.   2. Rumah Kelly   On the west coast of South Bali is Canggu. It can either be a seaside town or a region, depending on who you ask. For us, Canggu is a pleasant suburban landscape with beautiful rice fields that look best in the morning.   The villa itself is an attractive property to live in. The Java-Bali styled joglo is brought to life by the tough wooden material. The organic element has withstood the weather for years and will stand for years to come.   The inside is spacious, giving everyone room to breathe, unlike the type of houses with too many dividers and small rooms. As the insulation is optimal, you wouldn’t need to install air conditioning, although the house already comes with a complementary AC for your purchase.   Enjoy Rumah Kelly, a 150 square-meter house with two floors and two bedrooms.   Got any questions? Feel free to contact us   Bali Coconut Living is located in Jl. Bumbak Dauh No.89b, Kerobokan, North Kuta. Our agents are happy to show you around our properties Monday through Friday from 9 AM to 5 PM.

Canggu is the new Seminyak.   It’s a cool place to be, and more importantly, much cheaper. It’s becoming more and more popular among freelance travellers and digital nomads. Families who frequented Kuta, Seminyak, and Jimbaran are now looking for something new, and they are looking at Canggu.   Where can you stay in Canggu?   You can find a plenty of villas waiting to be occupied at very interesting rates. Currently in our catalogue, the two best villas at a strategic range between the serene paddy field landscapes and the beach are Villa Senyuman and Villa Maimun 1.   Villa Senyuman is a 2-bedroom, 2-story villa. It has a wide pool, fully equipped kitchen, open living space, garden and parking area.   Villa Maimun 1 is a 3-bedroom, 2-story villa sitting on 300 m2 of land. It’s perfect for larger families or friends looking for long-term holiday rentals.   The surfing beaches   Canggu has waves that accommodate surfers of all levels spread over the various beaches. If you are new to surfing, there are surfing schools and private instructors stationed along the seashore to help you to learn or get better at this exciting water sport. In the parts with more challenging waves, expert surfers gather for the surf season from May to September.   Even if you’re not into surfing, there are still plenty of activities to do on the Canggu beaches. You love food, swimming pools and music? Go to Tropicola Beach Club.   Pura Tanah Lot   Have you seen a painting of a Balinese temple surrounded by the sea with a sunset in the background? You won’t believe that it’s even more impressive in real life, this postcard view of the world-famous Pura Tanah Lot with a majestic sunset in the background.   The unique thing about this temple is that it is inaccessible most of the time due to the high tide. Certain weeks, even at ‘low tide’ the shallow path towards the temple is submerged a few dozen centimetres.   But unsurprisingly, the Balinese calendar has marked certain rituals to be conducted at the exact times the temple is accessible. Despite having so many visitors every year, Tanah Lot Temple remains one of the most mysterious and rather curious places in Bali. Be sure to check it out!   Where to shop and eat in Canggu?   Canggu isn’t the isolated coastal town that it once was. The town is abundant with restaurants, clubs, bars, cafes, specialty shops, and coworking spaces.   Throughout the entire length of Jl. Pantai Batu Bolong, you will find places to eat and shop, and you will never truly finish exploring the area as there are so many things to do. Check out the road, which ends on Old Man’s Bar, one of the best sunset spots from Batu Bolong Beach.   Don’t forget to also check out entertainment and sporting venues like the Splash Waterpark Bali, Finns Recreation Club and Tarukan Equestrian Centre.   Too many things to do in Canggu   There are so many things to do in Canggu that it’s necessary to stay in a villa for at least a week or even a month. Luckily Bali Coconut Living has a catalogue of all the villas you can rent monthly around Batu Belig.   Subscribe to our newsletter to receive special offers and important updates about property in Bali!

Purchasing a property in one of the most desired places to live is always a good idea. The property can be used as a home for your retirement, as your second home for the holidays, and even as a lucrative property business.   Like with any property purchase, you must do your due diligence research, talk to the right people, and trust only a few. Before making any purchase involving a huge amount of money, here is a reality check of what purchasing properties in Bali entails.   Land certificates - who really owns the land?   While land certifications matter for all property-related purchases, not every land certificate in Bali is up to date. There is a possibility that the landowner’s name inscribed in the certificate is no longer valid – perhaps due to death and inheritance, or unofficial selling to another owner, outside of the authorities’ knowledge.   Land law in Indonesia is straightforward, but the lack of law enforcement and people not following proper protocols for land transfers are the source of many headaches.   What to do:   When you receive information regarding the land certificate, you should ask politely how the current owner obtained the land certificate. If he or she purchased the land from someone else, try to contact the previous owner. If it is an inherited land, ask for the inheritance documentation and check with your lawyer.   At Bali Coconut Living, we always make sure that the freehold certificates certify the true owner of the land before they can list their property with us. This way, there will be no potential legal problems in the future.     Zoning - does the land lie in the correct zone for its purpose?   The building certificate (Izin Mendirikan Bangunan or IMB) is the next crucial document that determines how your property will function, and what you are allowed to build.   As urban development spreads outwards from the centre, buying property in the heart of well-established towns can get ridiculously expensive, so you will probably consider buying ones in the rural areas not too far from the main attractions.   Some of the local people have built houses on inappropriate zones, but got away with it because their family owns the land since before the government increased their efforts to enforce the zoning law.   What to do:   Check the IMB and the local zoning law. Remember, you are not allowed to build in the Green Zone (reserved for agriculture). You are not allowed to build commercial buildings such as villas, restaurants, or hotels in residential areas. In case of a mixed zone, consult with your property advisors on what you should or should not build based on unspoken cultural laws.   Go to the site – get an accurate picture of the property   What is on paper may be difficult to imagine, and sometimes untrue of the reality on the site. The site plan or aerial view map will not account for the following inconveniences: Actual land boundaries Neighbourhood access Road quality Land quality for construction Building quality Flooding or fire hazards     What to do:   Ask a property agent, such as Bali Coconut Living to help with property inspection. Done with us, this can be beneficial for you as we have done research on the property beforehand. We know the ins and outs of the property, the real owner of the property, the validity of the land certificate, and we even supervise properties that are under construction.   Do note that this is not legal advice, and you should hire a property lawyer to perform additional inquiries regarding the validity of certificates – it is normal to doubt everything! Rest assured that you have mitigated unnecessary risks by talking to our agents.

Last year, we have published an article (Where to rent a villa in Bali?) to show both buyers and sellers of property rentals what the different locations across Bali can offer.   However, for serious people looking to invest in property, simply knowing where your customers are renting is not enough justification to pick a location for your investment.   But this fact is good news because it gives you more options. You can still make sound investments even on property that is not prime real estate such as Seminyak, Kuta, or Uluwatu. You can still start your project even with limited funds.   You just have to follow the 4 rules of thumb for a smooth property business: 1. Place bets on development 2. Know your neighborhood 3. Know your customers 4. Opt for low maintenance properties   1. Place bets on development   The first principle is counter intuitive. You know that Seminyak, Kuta, Uluwatu and many ‘hotspots’ have high occupancy rates, attractive neighborhoods, and are the first places people read about when they look up ‘Bali’ online.   Well, they are incredibly expensive properties to buy. You will also compete with people who have a ton of experience in the playing field. In addition, tourism never stays in one location; it spreads out.   You should learn to predict future developments in tourism. While still cheap, buy properties in Canggu, Mengwi, Pererenan, Karangasem, and be one of the first to play the property game here.         2. Know your neighborhood   Developing areas still have natural and cultural features that are relatively untouched, which can become your USP (Unique Selling Point). Despite all the advice that you read about investing in Bali properties, you don’t need to get close to the beach.   Look at Ubud. It’s a hilly little town whose growth in tourism is fueled by peaceful terrace rice fields and a Monkey Forest. The nearest coastline is 40 minutes away by car.   Pick an area that is close to undiscovered natural attractions, like an increasingly popular hiking route, a beautiful view point, or an untouched bay where locals enjoy swimming.   Make sure that your property is accessible by car (i.e. located on the main road). Take some free insight from our Location Guide.   3. Know your customers   Think beyond ‘tropical beach paradise and martinis’ – Bali offers more than that. Instead, think of ‘escapism’ as the main attractive quality of the island. People come here to release tension of everyday living through various ways – yoga, surfing, night clubs, photography, trekking, and more.   Bali is also becoming an increasingly popular destination for digital nomads – they come here to discover fresh perspectives and a new work-life balance.   Work with what you have, and build your property around accommodating the unique needs of your market.   4. Opt for low maintenance properties   If you are building your villa or holiday home from scratch, pay attention to how reliable the land is. Is it prone to drought or flooding?   If you bought land with a property, carefully inspect the building. Does it need repainting? Any facility replacements?   A long-term property investment requires a marketing strategy   If you’re worried about the low occupancy rate, make use of free social media platforms to advertise your property or advertise via word-of-mouth.   Businesses usually run slowly at first, but if you invest in digital marketing (buying a simple website, for example), your property will have a better presence and image online, and would outcompete other new players that are still behind in marketing.   Bali Coconut Living is not only a property agency – we can advertise your property, manage it for you, and even give you some consultation from legal aspects to investment advice.

The steady growth of visitors coming to Bali is a confident signal that there is no shortage of potential tenants. However, you will most likely compete with the well-established hotel industry, if not other property owners in the market.   So how can you find tenants for your newly polished and treasured property asset? One of the easiest ways to market your property is through our property listing at Bali Coconut Living.   Why Bali Coconut Living?   Unlike most property agencies, we go above and beyond simply advertising your property online, in the hope that the right people will come to the right web page.   We think that the chances of this happening are astronomically small. So instead of waiting for tenants to find your property, we proactively add value to your properties.   Villa Management and Marketing Services   We understand that the property purchase was only half the battle. Maintaining the property to its fullest potential takes a lot of work, but that’s not all there is to do.   In order to receive positive referrals from your guests, it would be wise to provide services to cater to their unique needs and expectations.   Guest services and Day-to-day Operations: Trained hospitality staff and managers will ensure that your villa is as welcoming and comfortable as possible.   Building and technical maintenance: Our reliable technical staff ensures that no power outage or drought can dramatically decrease the level of comfort and happiness of your guests.   You can also rely on our marketing team not only to advertise your villa’s availability, but also to simplify the booking and payment process. No more hassle with international bank transfers.   Your guests can simply pay up front before coming to your villa; your earnings will be securely deposited into your account.   We value transparency as much as you do. We provide monthly reports on how your villa is doing, including recommendations on what actions to take.   A villa success story   Villa Natayani is just one of the villas whose owners have entrusted us its management. It is a 2-bedroom Bali-style villa, located in Seminyak’s Oberoi “East Street”. Every newly arriving guest is greeted by the Villa Manager or the Senior Butler. The respectful and unobtrusive maid and pool attendants work at their very best to ensure that the guests’ holiday experience is not met with any inconvenience.   Bali Coconut Living is a property agency, consultant, and management service under one roof. Kindly inquire about any questions you may have surrounding property ownership, management, and business.

To prepare for safe investment in property in Bali, you need to have more than just a plentiful starting capital. Like any other country, Indonesia has its own regulations concerning land use and the set-up of businesses.   Bali Coconut Living provides in-depth consultation for navigating the legal process of obtaining your certifications and rights. However, in this article, we would like to share some of the basic things you should know to get started.   Consider the following:   1. Izin Mendirikan Bangunan (IMB)   IMB is a certificate which dictates the rightful use of the land and building, according to the local zoning law. For a villa business, you can opt for either an IMB Pondok Wisata or IMB Kost [translated: 1) Holiday home and 2) Rented rooms, respectively]   If you purchase a land with a property (on a commercial zone), by default it may have a residential type of IMB. The question is, is it necessary to go through the (often long and complicated) process of transforming the residential IMB into IMB Pondok Wisata?   To conduct business, it’s always safe to have the appropriate certification. However, if you can’t afford to wait until the right certificate comes through, you can choose to do what many have done before you: sublet your property for a yearly rental arrangement.   Make sure, at a minimum, you have a Hak Pakai or Hak Guna Bangunan certification so the government can expect you to pay your due tax from your investment income.   2. Owner’s willingness for subletting   If you are a foreigner (i.e. someone who does not have Indonesian citizenship), you are not entitled to a freehold (Hak Milik) certification. This means, your land and property is by default still owned by an Indonesian who simply rents out his or her asset to you.   There is a chance that the owner will not allow you to sublet without proper permissions (IMB), even if the property has been sold with a Hak Pakai or Hak Guna Bangunan certification. Therefore, the importance of an IMB cannot be emphasized enough.   3. Additional requirements for villa construction   If you have only purchased land and wish to construct a villa, be aware of the basic parameters. In general, the requirements for a homestay in Bali are as follows:   Maximum 2 floors (ground floor and upper floor) Maximum room size: 32 m2 Minimum building coverage ratio: 50% Have at minimum the following facility: bathroom, kitchen, common room, parking space.   The requirements above distinguish your property from hotels, which require a different permit, and a land title of Hak Guna Bangunan. Follow through the requirements, and you may operate with IMB Pondok Wisata and a land title of Hak Pakai.   Please bear in mind that the legal procedure is deep and complex, and simply reading this article will never be enough to achieve your investment goals. Therefore, it’s advisable to contact Bali Coconut Living and ask about 1) the default certificates of the property you have chosen to purchase and 2) how to legally operate a long-term villa business.

Investing in a villa in Bali is always a good idea. With an influx of 5.7 million tourists a year, there is always a demand for accommodation that contributes to a market share of almost $140 million. However, when it comes to setting up a property business in Bali, things may be slightly more complex if you are a foreigner. While the legal procedures have become more streamlined today, foreigners must fulfill more requirements compared to locals – but this is typical anywhere in the world. Location, size, and amenities If you want to invest in a villa, you should spare no expense on three very crucial determinants to return on investment: the location, size and facilities included in the villa. Location The most important consideration before a potential customer chooses a villa, is the distance of the villa to the beach. Don’t worry about building your villa a little off the prime real estate, such as in Seminyak and Legian. Most tourists rent motorbikes to explore other towns, but a location within walking distance to the beach is a must. Size The villa should accommodate at least 3 bedrooms for 4 or 5 people. Most visitors are families who want to stay in Bali for at least a week, and find that it is much cheaper to rent villas than two hotel rooms. Amenities Your villa should include a swimming pool, WiFi and a garden. If you had to choose only one of these, opt for fast and reliable WiFi. Legal matters To operate a villa legally, you must purchase the land under either Hak Pakai or Hak Guna Bangunan titles. You cannot do business with Hak Sewa. Under Hak Sewa title and with permission from the landlord, you may set up an informal subletting to rent the villa out to a friend or family member, but it is not advisable to set up a homestay for regular rents under this title. Hak Pakai is obtainable by foreigners with a residency permit. These are people who must have lived in Indonesia for at least 5 years and have contributed to the country’s economic growth. This title is granted for 25 years and extendable up to 80 years maximum. However, to properly secure a lifetime, cross-generational property business, especially large villas up to a hotel scale, you may want to acquire Hak Guna Bangunan title. This is obtainable once you form a limited foreign investment company (in Indonesian, PT PMA). Building permit (in Indonesian, IMB) is another certificate that specifies how the land is specifically used. If the land IMB is specified to be a residency, you must update it to be a villa IMB. Furthermore, you need a license to lease villas (in Indonesian, Pondok Wisata). At a hotel scale, you need a hotel license. At Bali Coconut Living, we simplify legal procedures so that you can own or lease a villa or holiday home securely. Note that the article written here only covers the surface, and that it is NOT legal advice of any form. It is merely a guide to increase awareness of terms and keywords. If you need further assistance on legal matters, consult your trusted notary.