Blog

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!

It’s true that the price largely determines your return on investment rate. However, there are other ways to optimise your real estate in Bali so that your expenses do not exceed your rental income, while at the same time, you don’t need to wait too long for a new tenant.   This short strategy is written in particular for Ubud properties, because properties in Ubud are in a unique position. Sure, it is 40 minutes from the nearest beach, but the market segment that rents Ubud properties care least about the shoreline. Instead, they come to Ubud for spa treatments, yoga studios, organic food, and the lush green landscape.   Remind yourself to cater to the needs of this specific market segment.   1. Competitive is not always cheaper   People who choose to spend a significant amount of time in their villas to relax, detox, and heal will not shy on paying a bit more for quality. You can still be competitive even if you’ve invested in decoration, comfortable beds and furniture, and ask a higher price than what local guest houses offer.   Even if you have bought the land cheap in the outskirts of Ubud, it’s the best decision to add value to your villa accommodation so that your tenants feel compensated for the longer distance to the town centre.   2. Cleanliness over attractiveness   Ubud’s upmarket tourists make up a significant portion of the market. Their main concern is hygiene, particularly if they find that your villa is not in the town centre.   Exceed expectations by focusing on hygiene, including adapting the bathroom and layout. Follow Western standards to be on the safe side – popular hotels do this a lot.   If you have to choose between making your villa look pretty and making it spotless clean, we suggest the latter. You would want to exceed your guests’ expectations.   Once you have made sure that your villa is well-maintained, the next step is to decorate it. Find inspiration from the villas in our catalogue: Villa Horizon, Rumah Cakralawa.   3. Advertise it!   Once you have your price and property conditions sorted out, you can advertise it with confidence. The best way to advertise is through online channels and referrals. Create a website or a special social media account to help your audience focus on your properties’ features and benefits.   If that is too much of a hassle, not to worry. You can always ask a property agent, such as Bali Coconut Living to help you.   Interested in listing your property with us? Contact us by following this link.   Bali Coconut Living is a property agent in Bali specialised in leasehold and freehold real estate. If you are a foreigner looking for a hassle-free leasehold arrangement, visit our website to learn more. Browse through our portfolio of villas and land a secure and profitable investment.

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.

There are still plenty of opportunities in Bali to own a large luxurious home with a variety of purposes. Maybe you would like a holiday house, or a place to retire on a paradise island.   Maybe you’re looking to invest in one, to earn passive income from rent, and sell it again in the future for a better price. Either way, purchasing a luxurious home in Bali has its benefits.   Check out these houses from the Bali Coconut Living catalogue.   1. Rumah Kasio   Rumah is the Indonesian word for ‘home’, and you will feel at home in this villa, overlooking a peaceful paddy field. While the natural surrounding landscape is not as spectacular as the famous one in Tegalalang, Rumah Kasio still offers a view of fresh green Balinese fields.   This industrial-style villa is located in Tabanan and is available for sale. On 400 m2 land, the 184 m2 house features 4 bedrooms, 3 bathrooms, walk-in wardrobe, guest toilet, pantry with laundry area, terrace, garden, and 2 carports – plus plenty of parking space for guests to come and visit.   It is ideal for a family of four to live. When repurposed for monthly or yearly rentals, your tenant can bring their friends or family along for a natural treat. The area is not a crowded tourist area, but also not far away from the famous Pura Tanah Lot Temple.   Learn more about Rumah Kasio here.   2. Villa Ramos   Looking for a less crowded beachfront to live on? Villa Ramos is located in Sanur. The neighbourhood has long been known for its pleasant and laidback east-facing shoreline, and is not at all secluded from the main attractions of South Bali – Denpasar, Jimbaran, Kuta, and Seminyak.   The villa is situated in a secure villa complex on 380 m2 land. It features 4 en-suite bedrooms, closed living and dining areas, terrace, fully equipped kitchen, garden, swimming pool, private garage, outdoor BBQ area and common area with car access.   It’s built in a contemporary style, easy to maintain, and centrally located among many convenience stores, supermarkets, cafes, restaurants, spas and of course, the beach.  This is ideal as a retirement villa or even daily rental.   Learn more about Villa Ramos here.   3. Villa Halina series   The Villa Halina series is currently under construction in rural Babakan, each villa sits on 500 m2 of land. So, grab one of the properties fast while the price is still cheap.   The construction is expected to be finished between March and April 2020. It’s going to be a great place to call home, and a great investment for those looking into a large 3-bedroom villa. The villas feature 3 en-suite bedrooms, guest toilet, kitchen, closed living room, terrace, swimming pool, garden and parking area.   The two villas are 20 minutes from Canggu, and close to many natural features, making them ideal for long-term holiday villa rentals.   Check out Villa Halina I and Villa Halina II by following the links.   Bali Coconut Living is a property agent in Bali specialised in leasehold and freehold properties. If you are a foreigner looking to get a hassle-free leasehold arrangement, visit our website to learn more. Browse through our portfolio of villas and land for a secure and profitable investment.

Staying for a month in a hotel room in Bali may not sound appealing to you. If you are browsing villas for a long-term rental instead, then you are on the right track to save money for traveling while enjoying additional benefits that villas can offer.   At Bali Coconut Living, we are here to help you settle down in Bali quicker and more comfortably. Here is our short guide on how to prepare a budget for your villa.   How costly is traveling in Bali?   This is a fair question to ask with not one well-defined answer – it depends on 2 things: location of your stay, and the type of accommodation.   A good rule of thumb for location is that the easier it is for tourists to access the location, the more expensive the accommodation will be.   The south of Bali has some of the most expensive real estate in the entire country, but you can find great accommodations for your money’s worth in the northern regions (Buleleng, and Bangli), the eastern region (Karangasem), or in the western regions (Tabanan, and Jembrana).   Of course, the northern and western regions are not that popular due to the large distance from the capital (Denpasar), and that may cost you other conveniences like hospitals, banks, and English-speaking locals who can help you. If you’re not planning to explore much in these regions, renting a villa in the south is a safer bet.   Quick guideline for accommodation costs   In South Bali, you can get by with less than US$11 a night. You’d get a small room with a single window, a fan, a cold shower, and if you’re really lucky, you have a pool.   With US$12 to US$25 a night, you should expect air conditioning, hot water shower, a small fridge, wifi and breakfast – although arguably, you can find more satisfying breakfast across the street, if you don’t mind street food. Accommodations like these most likely include swimming pools.   At luxury hotel levels, you should expect greater comfort with a price of at least US$36 a night.   What can villas offer that hostels and hotels do not?   In short, you can enjoy air conditioned rooms, hot showers, a personal kitchen with a refrigerator, gas stove and utilities, a large living room with TV, fast wifi, enough space for friends or family, and possibly a large swimming pool – all this for the price of 12 US-dollars per person per night.   You should definitely check out Villa Cendrawasih in coastal Pererenan (near Canggu). This is one of the many villas in our catalogue, and we normally list villas that are around the popular hot spots in South Bali – Kuta, Seminyak, Canggu, Ubud, Sanur, Nusa Dua, and Tanah Lot.   Search your new holiday home in Bali   Renting and buying holiday homes in Bali is easier than ever. Our agents are happy to assist you with legal document preparations and payment arrangements, so you don’t have to spend too much mental energy in planning your long-term holiday. What are the next steps? First Discover your favourite Villa, then Contact 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.

As we have mentioned numerous times before, the nominee structure as a means to obtain absolute ownership of land by a foreigner, is illegal.   However, when land ownership comes into question, and when it involves marriage between a local and a foreigner (even if the intentions are good), the law can make things complicated.   According to the Indonesian Marriage Law (1974), Article 1, mixed marriages can result in the Indonesian spouse losing his or her freehold land and the right to purchase more land under freehold title. The law’s intention is good - to prevent so-called marriages for the sake of owning land for foreigners under joint assets.   This is because of Article 35 of the same law, which states that unless stated otherwise, acquired property and other assets become joint marital property of the couple. So, if one of the spouses is a foreigner, the property cannot be counted as joint marital property, and in effect, cannot be owned by the couple.   However, this is a great disadvantage for many honest Indonesian citizens who are tied into an honest marital commitment with their non-Indonesian spouse.   To solve this problem, it is very important to form a prenuptial agreement which has the ability to separate the Indonesian citizen’s property assets from the joint asset agreement under the future marriage.   If you are recently married to a foreigner (or your spouse is Indonesian), and for some unfortunate reason, you have not been informed about Article 1 of the 1974 Marriage Law, then it is imperative you continue reading.   What is the consequence of not having set up a prenuptial agreement to separate assets? The Indonesian spouse must release their freehold property within one year of the marriage. The release can be done by selling or granting it.   If selling or granting the land is not possible, or if you or your spouse still consider buying a freehold property as a crucial part of one’s life, there is still hope. You can now make a postnuptial agreement to distinguish which asset belongs to the Indonesian spouse and is to be controlled indefinitely.   Due to the possibility of the postnuptial agreement, there has been revisions of the law that is, frankly, still unclear. Some parties have been able to own Hak Milik properties, even though one’s spouse is a foreigner. Some parties have claimed not to lose their freehold land after marrying the foreigner for many years.   The good thing about this uncertainty is that you can always hire a lawyer to clarify things for you. As a disclaimer, this article is NOT legal advice and should be taken with a grain of salt.   Bali Coconut Living is a property agent in Bali that specializes in leasehold and freehold properties. If you are a foreigner looking to find a hassle-free leasehold arrangement, visit our website to learn more. Browse through our portfolio of villas and land, for a secure and profitable investment.