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So you’ve taken the plunge and have decided to go ahead and buy land in Bali! Congratulations, this is going to be an exciting time for you. Being a landowner in Bali means that you’re investing in one of the most wanted locations in the world –your investment will only yield high returns as time goes by. Additionally, buying land in Bali is one of the surest and safest ways to park your money and grow your asset portfolio. Even if you’re not developing the land yet, you can just leave the land there with little to no risks. Unlike properties, land does not require maintenance, electricity, or security. All you have to do is just make sure no one is squatting or illegally building on your land. But before you sign on the dotted line, let’s take a look at some common mistakes that people make when buying land in Bali and what you can do to avoid them. Skipping out on background checks Before any transaction takes place, it would be wise to do your due diligence and find out more about the land that you’re looking to purchase. Make sure that you’re dealing directly with the owner or a trusted and accredited real estate firm with direct ties to the owner. It’s unfortunate that in many cases, there are “middlemen” involved which could cause you problems in the long term. It might be tempting to just skip all the red tape and put your trust in the friendly salesman, but remember that you’re putting a lot at risk. The best way to check if the land and owner are “clean” would be to enlist the services of a property lawyer and a notary. No Understanding Of Indonesia’s Property Laws At this stage, it’s important to understand that only Indonesians can purchase or own land/property in the country. No foreigners are allowed to do so and if someone is telling you that you can, that is a huge red flag. Make sure you understand the basic land/property types which comprise the following: The “freehold” title or “Hak Milik” means that only Indonesian citizens can hold this title. If you’re a foreigner and you’re tempted to hold a freehold land, it will automatically be deemed void, and therefore, the land will automatically belong to the government. A secondary title, known as “Right of Use” or “Hak Pakai” is the best option for a foreigner. With a built-in extension of 25 years, the title comes with renewal after 20 years with only a small tax implication. Restrictions include the size of land and property and you must hold a valid permit to stay in Indonesia such as a KITAP or a KITAS. The third title is a commercial title; “Hak Guna Bangunan”, which means “right to build”. This title is compulsory for both foreign and Indonesian companies buying, selling, or managing villas for commercial purposes. Remember to also speak to your lawyers and notary about property tax and other taxation involved when buying land in Bali. No Understanding Of Zoning Laws and Regulations Understanding zoning laws is extremely important as it will tell you what you can and cannot do with your land. Some areas are zoned for tourism which is great for villas, guesthouses and hotels. Certain zones are slated for residential, forestry, conservation, green, industrial and trade and service. Some properties may not even have road access, which will be expensive for you to undertake. Be sure to speak to your lawyer or notary to understand which zone the land that you’re planning to buy falls under and if you’re even allowed to build on that land at all. No understanding of the local culture or “adat” It’s very important to understand the neighbourhood where your land is located in. Every village in Bali is governed by a “banjar” - a council of village leaders with their own sets of rules, guidelines and regulations. Spend some time understanding the local neighbourhood laws, important cultural practices and religious days. There might be fees that you’d need to pay the Banjar every now and then, which would go back into the village. Speak to other foreigners in the area who might be willing to share their experiences with you so you can be mentally prepared. Ready to buy land in Bali? Contact Bali Coconut Living is a leading Seminyak-based villa property agent ready to assist you in buying, selling, and villa maintenance. Feel free to browse through our listings of freehold or leasehold apartments, available for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran, Sanur and Canggu.

Now that the world is re-opening and Bali is once again welcoming tourists, it’s time to have another look at your Bali investment opportunities.   There is plenty to consider - villas, houses, office buildings, restaurants, cafes, or entire developments. But today we’ll be exploring investing in land in Bali.   The question that we often get is, is it worth buying land in Bali? And once again, the answer is yes.   Land is one of the smartest choices you can make when it comes to property investments here in Bali. It is safe, stable, and secure.   Land prices will increase over time. In the rare occurrence of a pandemic or other life-changing events, you can always park your land for some time and wait it out.   The right time will come when you can then sell or develop the land with profit.   Another great reason to invest in land in Bali is that it is very low maintenance and safe. All you need to do is make sure the proper legal work is done and you’re all set!   Land prices in Bali have been steadily rising for decades. Before the pandemic, land in Bali was notoriously overpriced.   Fortunately, or unfortunately, asking prices are now between 30 - 50% below pre-Covid-19 asking prices.   There would also be fewer people competing for each property so you can take your time to find the perfect villa that suits all your preferences.   This basically means that this is the best time to add more land to your asset portfolio.   Remember that foreigners aren’t allowed to own land or property in Bali so you’d have to resort to a long-term lease which can go anywhere from 2-100 years.       Most people opt for 25 years. Land prices would vary from location to location so if you’re leasing in say, Tabanan, it would vary greatly to the cost of property in Canggu’s Berawa and Batu Bolong or Seminyak, Petitenget, and Umalas. Price would be per “are” or per square meter.   There are various Bali Property Ownership Rights For Foreigners in Bali including Hak Pakai / Right Of Use and Hak Guna Bangunan / Right To Build.   Remember that you must also obtain your accommodation license and Ijin Mendirikan Bangunan (IMB) if you plan to build or develop your land.   Click here to find out more about Bali Property Ownership For Foreigners to learn more about the different types of ownership in Bali!   Ready to find your ideal property or land here in Bali? Contact us now. Bali Coconut Living is a leading Seminyak-based villa property agent ready to assist you in buying, selling, and villa maintenance.   Feel free to browse through our listings of freehold or leasehold villas and apartments, available for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran, Sanur, and Canggu.