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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.

Seminyak is a pleasant small town dotted with enticing restaurants, exciting beach bars, and boutique shops and spa centers. If you are a frequent visitor to Seminyak, wouldn’t it be cool to actually live in the town itself? For a month’s stay, you can opt for a comfortable, homey villa.   Knowing the Land   The town is accessible from Kuta via Sunset Road and Jl. Raya Seminyak. The town’s most popular commercial center lies around the point where the two roads meet. This is the prime location, besides the beach area.   From the north, if you are coming from Tanah Lot and Canggu, you’d be traveling via Jl. Kerobokan, which has plenty of boutique shops and restaurants lining the road. From Denpasar city, Jl. Batu Belig leads visitors to the beach. There are a plenty of beach bars at the end of this road (the beach), but less so going eastward.   Now finally, we get to the more upmarket area, which is the most popular spot after the town’s commercial center. Famous spots like the Colony Hotel, Mrs Sippy Bali, and Soham Wellness Center, all lie on Jl. Petitenget. The southern half, below Jl. Kayu Ayu, attracts even more crowds, where you will find beach clubs and elaborate restaurants to suit your taste.   Location, location, location   Choosing a villa in the town center is a better strategy than placing yourself in one of the crowded and popular places like the southern half of Seminyak. Even if you enjoy going to beach clubs, you don’t have to live next door to one.   The town center is a great place to start because it is relatively quieter, yet you can still access places of interest quickly, via the main streets.   Bali Coconut Living has a vast collection of villas for rent or sale. After much consideration, we’ve handpicked six villas that may suit your needs:   Villa Lexi This villa is within reach of La Favela and Metis, two fun and exquisite Mediterranean restaurants that are sought-after by Bali lovers. Villa Lexi lies next to Purpa Fine Art Gallery at Jl. Mertanadi.   Villa Gomez This villa is within reach of the uniquely famous WACKO Burger Cafe, Frankenstein Laboratory and BaliJoe Bar. Lapangan Banteng cultural hub is also close by. You can find this villa in Jl. Drupadi.   Flower Villa 2 At Jl. Mertapadi, right in the town center, you will find this villa within close proximity to the all-time favourite Gusto Gelato ice cream parlor, Naughty Nuri barbeque restaurant, and the healthy food restaurant, Ingka Restaurant.   Villa Pelikan 2 This villa sits right next to Dream Museum Zone Bali, one of Bali’s most creative and fun photo studios and museums that hosts incredible live optical illusions for you and your family to enjoy. It’s also close to Legian Art Shop and the very traditional morning market Pasar Pagi Desa Legian.   Villa Luke This villa is not in the town center, but it deserves some recognition. It sits very closely to the Double Six Beach, where you can access La Plancha and Champlung Bar and Restaurant at mere walking distance.   Alexandria Apartment For those who prefer living close to relaxation and rejuvenation houses, this apartment will suit you. It’s close to Jari Menari and Yoga Shala. You can also visit the local art gallery, Nyaman Galeri Art.   Visit Bali Coconut Living to browse more villas. Got any questions? Our sales team will be happy to help you find what you need among a thousand listed villas and holiday homes in our catalogue.

Bali is one of the best places in the world for retirement. It is always sunny here, with a constant 30°C climate, perfect for year-round outdoor activities. The beach is just a few minutes’ motorcycle ride, there are places to hike in the highland regions and the food tastes great with brilliant tropical flavors.   You can get all of this for only a fraction of the cost, so it’s not surprising that many people choose Bali as their retirement playground. Here are the things you need to know before retiring in Bali.   The Accommodation   Since it is not possible for foreigners to own freehold land, taking a long-term lease is the easiest solution available. It is very straightforward – you pay upfront, and get to lease the property for a long number of years.   Are you planning to spend less than 5 years in Bali, but worry that the price for short-term lease is higher than long-term lease? Don’t worry! As a general rule, leasehold properties are much cheaper when they are near their due date. You can enjoy the property for 2 to 3 more years before the leasehold certificate expires and the property reverts back to its original owner.   One of the surprising things about applying for a retirement visa (more details below) is that there is a minimum rent requirement of US$380 a month. This is to set a standard baseline of the quality of your accommodation.   As it is beneficial for the Indonesian economy, you are required to hire at least one worker – whether a gardener, a housemaid, or a driver.   The Paperwork   Finding properties for retirement is usually not so difficult. What is more challenging is to apply for the retirement visa. If you are at least 55 years old and planning to retire in Bali sometime in the future, apply now. It’s a time-consuming process that is best started once you reach the minimum age requirement.   The next few requirements are standard. To accommodate your living expenses in Bali, you need proof of health and life insurance, and proof of pension, with a lump sum of US$18,270 per year in income from savings or other sources.   Unfortunately, Bali isn’t known for large hospitals with state-of-the-art medical technology. If you have a chronic medical issue, you may need to reconsider your decision to retire in Bali.   Other Benefits   The paperwork might seem demanding, but the initial investment can have a return in the quality of life you will receive. You are eligible to open a local bank account, get a driver’s license and travel around quite easily and cheaply. You can enjoy rejuvenation centers, spa or yoga studios, join classes and do what you absolutely love, at half the price that you’re used to back home.   We recommend Villa Uma Sita as an ideal model for your retirement villa. It is located in Sanur, and is very close to Taman Inspirasi Mertasari Park, Mertasari Beach, Power of Now Oasis Yoga Retreat and Seawalker Conservation, where you can snorkel and perform sea walks!   Get Started Today   When you are set with your paperwork, Bali Coconut Living will be more than happy to greet you. We are a local business that caters to buyers and sellers of property. We also help holiday-goers find the best accommodation that fits their needs. An easy-going relaxing life is waiting for you here in Bali.

A villa is perfect accommodation for a family on holiday, because it is typically spacious and private. At best, it includes a swimming pool and is centrally located to popular spots. At worst, it’s a holiday home to share the joy of vacationing together as a family.   Checklist for A Family-Friendly Villa   When searching for family villas, you must also consider whether or not the location is family-friendly. If you have small children, it is best not to rent villas that are too close, or even directly on, the main street. Bali can be hot, so the area should have a great abundance of greenery, and not many cars passing by. Also, to avoid a lot of noise at night, it is best to find villas that are not too close to bars and big restaurants.   Villas located near the beach can be a treat for older children. Bali’s shorelines are relatively safe. You only need to make sure that your children respect the safe boundaries, and don’t swim too far out to sea. Canggu   Canggu is one of the most family-friendly places in southwestern Bali. Terraced rice fields that gently roll from Mengwi, are sought-after natural features for the location of yoga retreats and restaurants.   The roads are not too busy for families to cross safely. Even the main road, Jl Pantai Berawa, is not crowded with vehicles, so families can enjoy a healthy morning walk on most of the roads in Canggu.   On Jl. Pantai Batu Bolong, you can find Tarukan Equestrian Center where you can take your children to ride horses, and Taman Segara Madu Water Park – something you can all look forward to! For your parents, The Canggu Studio offers relaxing yoga for the elderly. Seminyak   Although Seminyak has attracted an increasing number of crowds over the years, it is a very friendly place for families. The area surrounding Seminyak Square and Seminyak Village shopping centers, has crowds that are typical when locals and foreigners congregate to find family entertainment here.   Even at night, it is unlikely to find bars with heart-pumping music and drunken people in Jl. Petitenget and Jl. Kayu Jati. In fact, most people come here to spend an evening with a positive vibe, and perhaps to try out some gelatos, like Gelato Secrets. Uluwatu   Uluwatu is the destination for cultural lovers and surfers. While the area is not as developed as Kuta or Seminyak, it attracts a different, calmer crowd altogether. You might not see a great collection of bars and fancy restaurants, but this location is just perfect if you want to settle down in a quiet villa with nothing but a brilliant view of the sunset from the famous Uluwatu clifftops. Jimbaran   There is a good reason why the Intercontinental Resort was built in this area. The quiet atmosphere, coupled with a beautiful beach, is exactly what you need for precious shared moments at a family barbeque, with swimming by the sea.   If there is one place closely associated with family gathering, it’s seafood restaurant. Especially in Asian cultures, seafood restaurants are known to be a hub for family gatherings. Jimbaran has an abundance of these, so you always have many options to choose from.   Bali Coconut Living is a property agent in Bali that specializes in leasehold and freehold properties. 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, for a secure and profitable investment.

Many young foreigners have opted to become digital nomads. This alternative lifestyle is geared towards adventure, exploration, and creativity. Their jobs range from writing and media, to technology and design. But the most important characteristic that all digital nomads share is that they are mobile and independent of location.   Why do Digital Nomads love Bali? Bali has become an increasingly popular hub for digital nomads. The tropical paradise offers everything that digital nomads could possibly ask for: natural scenery and waves to surf on, interesting food and many experiences associated with a tropical island holiday. The island also offers additional value. The laid-back life and relatively cheaper housing makes Bali a more preferable destination for digital nomads compared to Singapore, Hong Kong, and Taiwan (although these three cities have their share of freelance travelers and solopreneurs). Being the number one tourist destination of Indonesia, Bali offers opportunities for digital nomads to meet new people from all over the world. So not only does the island provide a positive environment in which digital nomads can work comfortably, these people are also able to create substantial income from networking efforts here in Bali.   What’s happening in Canggu? Addressing the problem of rising prices of property in Seminyak and Kuta, early investors built restaurants, villas, and resorts in Canggu, what used to be a lonely seaside town about 20 minute’s drive north of Seminyak. Now Canggu is becoming more like its popular neighbors in the south. To those who regret not investing in Seminyak earlier, there is still a chance to penetrate the emerging market in Canggu. Coffee shops, healthy food cafes, boutique shops, and upmarket bars have already settled there. But there is still room for more to come. Property prices have not yet reached insane levels. Several property agents quote an average cost of US$300,000 for 2 bedrooms villas (250 square meters) as opposed to Seminyak’s US$500,000 for the same property. Furthermore, access to Canggu is getting better. New roads and sea side developments along the distance between Seminyak and Canggu are being built, so if you are looking for a decade of prosperity, the location is definitely set here. With slightly lower prices for housing, yet offering about the same natural scenery and activities in Seminyak, Canggu is becoming a new hub where digital nomads flock. And they do flock in great numbers to a particular location, once the location has received excellent reputation.   What now? The greatest factor of success is timing. Now is the time to diversify your investment portfolio in Canggu. Consult Bali Coconut Living to discover properties at their best prices! We simplify the normally arduous process of buying properties, so that you waste no time to get your business started.

As a foreigner, establishing a business on a property that you can’t secure, will add to the baseline anxiety of owning a business. A few sources have suggested to use the nominee structure, to name the property under a trusted entity’s name, on your behalf. Let’s be honest though – that would add even more anxiety, as the property is not only not yours but that entity may one day lose their trustworthiness and may potentially stab you in the back.   The safer alternatives are Hak Sewa (Right of Lease), Hak Pakai (Right of Use) and Hak Guna Bangun (Right to Build). Note that the English translation is only rough, and each has its own terms and agreement that are not successfully translated by the keywords alone. Different rights to property   Hak Sewa is a simple contractual agreement between tenant and landlord. While the terms are flexible (as it depends on your relations with the landlord), and you may secure a rented property, it’s unlikely that you can create a profitable business with this title deed. It is subject to a typical yearly ground rent.   Hak Pakai is more common for commercial or residential purposes. It is applicable to foreigners domiciled in Indonesia (i.e. a resident who works in and pays tax to the country), and only one foreigner can hold one Hak Pakai title deed. Unlike Hak Sewa, Hak Pakai is not transferrable. This is because Hak Pakai holds more power and control over the property. It holds for 25 years since it is first issued, and is extendable for 70 more years – effectively a lifetime ownership of the property, although it is not inheritable.   Hak Guna Bangunan is dubbed as the title deed whereby a foreigner is as close to having complete ownership to a property as possible. Hak Guna Bangunan is reserved for local companies and foreign investment companies (penanaman modal asing, or PMA). The PMA can be fully owned by foreigners, so in effect, the land is controlled by foreign individuals as a company. It holds for 30 years since first issue, and is extendable for 20 years and a further 50 years.   Investment options and their appropriate title deeds   Private villa   Renting a villa long term is technically not an investment, but it can save you a lot of money from booking hotels. If you are lucky, and the landlord grants permission to sublet your villa, you can make small amounts of extra money from informal rents, say through an online accommodation market. If your only intention is to have a place to stay in Bali, then Hak Sewa is more appropriate. It is only an arrangement mediated by a public notary.   If you are looking into having a villa rental service with more freedom to modify the buildings, apply for Hak Pakai. Not only is this a stronger claim, but you may potentially have a more solid and certified villa rental business for your entire life.   Small restaurants, warungs, cafes   Hak Pakai is again one of the most appropriate ways to establish a small business with low startup costs and with absolutely no shares to sell. You may, however, need to organize more paperwork and apply for a “CV” – a company title much smaller than a limited venture, perseroan terbatas (PT).   Hotel, resorts and large restaurants   Obviously Hak Guna Bangunan is more appropriate. You have the company and the capital to apply for nearly complete control of the property. The advantage is that you have the right to build anything you want that meets your company’s needs. Hak Pakai is only limited to very small changes, and this depends on very stringent regulations. Hak Guna Bangunan is the most secure way to control a property that acts as a foundation to your large business.   If you are looking for a property agent in Bali, look no further than Bali Coconut Living. We specialize in villas and holiday homes for people willing to sell or lease. Just tell us your budget and your prospective location, and we will lead you to our trusty clients on the other side of the table.

Property is a unique kind of business because you can treat it as either an active or passive income generator. It is also considered more secure than investing in debt, shares, and forex (passive or active) because 1) you can physically maintain and claim your property ownership, and 2) property prices in general always increase. Bali is not only an island paradise for holiday-goers. It is also an island paradise for investors.   Bali’s property investors: “It has worked before, and still works now”   Property investors have realized from many years ago that Bali’s growth in tourism was only going to have an uptrend. Investors saw an increase in their income as prices raised due to an increasing demand in a seemingly inelastic market.   The skyrocketing price was a spectacle. In 2011, the average land prices increased by 34% when other places across the archipelago only received an 8 to 16% price increase. Near the west coast of Bali, the shoreline prime real estate of Seminyak, Legian, and Batu Belig experienced a staggering 50% to 87% surge of freehold property prices.   Stringent regulations for foreigners willing to invest in property in Bali do not stop them from purchasing land, even today. This is a sure sign that property business on this beautiful volcanic vacation island still has potential for many years to come.   Bali is a safe nest for your investment   Unlike most places across Indonesia, Bali attracts many foreign visitors for the very reason that the island is a safe and friendly place. Some say the Balinese’s strong belief in the concept of karma is an incentive for the low crime rate. Others suggest that it has become a long-standing norm to accept foreigners in their land, because, after all, they bring wealth to their pockets.   If you place your investment in Bali, and follow the written (and unwritten) regulations, and have trusted local friends that genuinely want to help you, the risk of a complete loss is considerably low.   Even the dangers of natural disasters are rare; the recent volcanic eruption from Mt Agung may have dampened tourism for a while, but that’s only a short speed bump for the growth of tourism.   The island’s local governmental body encourages legislation that makes it easier for foreign investments to enter the country – through Bali as the gateway. Corruption, demonstrations and protests rarely happen in Bali, so one can say that local politics is relatively more stable compared to other places in Indonesia.   New tourist hubs are developing outside the prime real estate   If the skyrocketing land prices in Seminyak and its neighbors are making you nervous, fear not! There are many other places that are beginning to gain traction in tourism. Places like Uluwatu, Canggu, and the northern coasts of Menjangan are real estate late bloomers. Prices are increasing, but there is still a chance to penetrate the market.   Here’s more good news: A new airport in Buleleng, north Bali, will begin construction in 2020. This could be your chance to be one of the first to own a property in what will be a new prime real estate – the next Seminyak and Kuta. Not only is this area going to be more accessible, the north of Bali has other interesting offers as well: coral reefs and sought-after diving spots.   If you are looking for properties to buy or lease, Bali Coconut Living is one of the top property agents that can help you with this. We ensure that the transaction is hassle-free and will point out all the fine prints so that you are satisfied with your investment. To browse through our catalogue of villas, visit Bali Coconut Living.