Blog

Bali’s property market continues to attract foreign investors looking for vacation homes, rental properties, or long-term residences. However, Indonesian property laws are distinct from those in Western countries, and purchasing property as a foreigner requires careful legal navigation. Many first-time buyers assume they can own freehold property in Bali outright, only to discover that Indonesian law prohibits foreign freehold ownership. Instead, foreigners must explore alternative options such as leasehold agreements or Hak Pakai (Right to Use) titles, both of which provide secure yet legally compliant avenues for property acquisition. The difference between freehold and leasehold ownership is crucial to understand from the outset. Freehold, or Hak Milik, is the strongest form of property ownership available in Indonesia, but it is restricted to Indonesian citizens. Foreigners cannot hold land under a freehold title, which means that even if an international buyer were to enter into an informal arrangement with an Indonesian nominee, the legal risks would be significant. Leasehold, on the other hand, is a well-established and fully legal alternative. Foreign investors can lease land and property for an initial period of 25 to 30 years, with the possibility of renewing for an additional 20 to 30 years, making leasehold agreements an attractive option for those looking to invest in Bali’s real estate market. Another option, Hak Pakai, is available to foreigners who hold a KITAS or KITAP visa, which allows for long-term residence in Indonesia. This title enables a foreigner to obtain the right to use a property for up to 80 years, provided they meet certain requirements, including purchasing a property valued at no less than IDR 5 billion. While less common than leasehold arrangements, Hak Pakai provides an alternative for those who qualify. Legal Due Diligence: Why It Matters Regardless of which ownership structure a buyer chooses, conducting legal due diligence is an essential part of the purchasing process. In Bali’s fast-moving property market, where land transactions are frequent and documentation standards can vary, it is vital to confirm that the property being purchased has a clear and legal title. Buyers should verify that the property has not been previously sold or leased to another party and ensure that there are no outstanding taxes, disputes, or encumbrances. An essential part of due diligence is checking zoning regulations. Land in Bali is classified for different purposes, including: Residential use Commercial use Tourism use Agricultural use Some properties may be located in areas where foreign leasehold ownership is restricted or where certain types of development are prohibited. Without verifying zoning status, an investor may purchase a property that cannot legally be used as intended, leading to financial losses or legal issues down the line. A reputable notary, or PPAT (Pejabat Pembuat Akta Tanah), is a necessary partner in any property transaction. A notary’s role includes: Verifying the authenticity of land certificates Drafting legal agreements Ensuring that all necessary paperwork is correctly filed with the Badan Pertanahan Nasional (BPN) Investors should always work with a qualified notary and legal consultant rather than relying on informal agreements or verbal assurances. The Importance of a Well-Drafted Lease Agreement For foreign investors who choose a leasehold agreement, the structure of the contract plays a crucial role in protecting their interests. A properly drafted lease should clearly outline the lease duration, extension rights, and financial terms, including any pre-agreed conditions for extending the lease in the future. Without explicit renewal clauses, a foreign investor may face difficulties renegotiating terms when the initial lease period expires. Another critical aspect of the lease agreement is defining permissible property modifications and usage rights. If a buyer intends to renovate or rent out the property as a short-term or long-term rental, these conditions should be outlined in the lease to avoid disputes later on. Additionally, an exit clause is advisable, detailing how the leaseholder may transfer or sell their remaining lease term to another buyer if needed. Without these provisions in place, an investor may find themselves locked into unfavorable terms with no legal recourse. Engaging a legal expert to draft or review the lease agreement can prevent costly mistakes and ensure that the contract reflects the investor’s long-term goals.   Property Taxes and Fees Aside from the purchase price, buyers must account for taxes and legal fees when acquiring property in Bali. The Land and Building Acquisition Tax (BPHTB) is a mandatory tax imposed on property purchases, typically amounting to 5% of the transaction value. Legal and notary fees can vary but generally range between 1% and 2% of the property price. For those leasing property, annual land and building tax (PBB) is a recurring obligation, though it is usually modest compared to similar taxes in Western countries. Meanwhile, sellers are required to pay a Capital Gains Tax (PPh) of 2.5% when transferring ownership. These additional costs should be factored into an investor’s budget when evaluating the affordability of a property. Alternative Investment Structures for Foreign Buyers For investors looking to hold property with stronger legal protections than a leasehold agreement offers, establishing a foreign-owned company (PT PMA) can be a viable option. A PT PMA (Penanaman Modal Asing) is a legally recognized entity that allows foreigners to conduct business in Indonesia, including purchasing land under a Hak Guna Bangunan (Right to Build) title. This structure is commonly used by those investing in commercial real estate or villa rental businesses, as it enables more direct control over the property. However, setting up a PT PMA requires compliance with Indonesian business regulations and ongoing administrative oversight. Some buyers explore nominee agreements, in which an Indonesian citizen holds the title on behalf of a foreign investor. While this approach may seem convenient, it is legally risky and not recommended, as Indonesian law does not recognize nominee arrangements, leaving the foreign investor vulnerable to potential disputes. Avoiding Common Pitfalls Despite Bali’s reputation as an attractive investment destination, buyers should be aware of common pitfalls that could jeopardize their purchase. One of the most frequent mistakes is relying on verbal agreements instead of legally binding contracts. Every transaction should be formalized through a written agreement in both Indonesian and English, ensuring transparency and enforceability. Investors should also avoid purchasing property without verifying zoning and building regulations, as non-compliant properties may face demolition orders or legal disputes. Additionally, failing to confirm the seller’s legal standing can result in complications, particularly in cases where land certificates have not been properly updated or where multiple parties claim ownership rights. Securing a Smart Investment in Bali Purchasing property in Bali offers a wealth of opportunities, but understanding the legal framework is essential for a secure and successful investment. Whether opting for a leasehold agreement, Hak Pakai title, or PT PMA structure, buyers must conduct due diligence, work with trusted legal professionals, and ensure that their contracts are airtight. This also applies if you’re eyeing land for sale Bali to build your dream villa or start a business. Bali Coconut Living is here to guide you through every step, making the process smooth and stress-free. Get in touch with us today and let’s find the perfect property for you in Bali!

Golden sunsets, crystal-clear waters, swaying palm trees, and lush rice fields come together to create a destination cherished by travelers. Now, picture yourself owning a piece of this paradise on Bali Island. However, can a foreigner own property in Bali? And should they? The answer to both questions is yes, but knowing how to go about it is important. The experts at Bali Coconut Living and the properties we offer make great starting points, so let’s dive in and explore some of the possibilities, the benefits and the need-to-knows.    Reasons to Invest in Bali Property If you have the means to invest in the Balinese property market, it can be an amazingly lucrative source of income. Stating the obvious first: Bali is a tourism goldmine - it has been for a long time and it doesn’t show any signs of slowing. Millions of tourists travel to Bali every year, and if a property you own is available for them to rent, that means millions of potential customers.  From luxurious villas to beachfront estates, the potential for income is sky-high. In addition, Bali’s property market has been on a steady rise, particularly in popular areas like Uluwatu, Seminyak and Ubud. So, if it’s a solid investment you’re after, put Bali on your radar.    Key Traits of the Best Investment Properties in Bali Keen to invest? Congratulations! Time for the fun part: picking the perfect property. Chic villas overlooking lush greenery, serene retreats nestled closer to the jungles and beachfront bungalows that put the water almost within arm’s reach… with so many options it can be hard to know where to look. So, why not start right here? Bali Coconut Living curates a portfolio of highly desirable properties that potential renters will love - let’s look at a few below.    Villa Ocean Dream  Situated in prestigious Uluwatu, this stunning three-bedroom residence offers warmth and comfort alongside its convenient location. Each bedroom is spacious and includes an ensuite bathroom, while visitors will love the enclosed living area, fully-equipped kitchenette and spacious pool. It’s a floorpan that balances style and practicality. Nearby restaurants, gyms, and a beach make Villa Ocean Dream perfect for families or longer stays.    Villa Leovana 4  A demonstration of opulence and style, this exceptional five-bedroom Villa Leovana 4 is located in the exclusive Umalas area. Visitors are greeted by a beautiful living area that seamlessly integrates with the sleek, modern kitchen. Elegant bedrooms feature plush bedding while large windows ensure abundant natural light. Each ensuite bathroom is a true sanctuary, with walk-in showers, plus a jacuzzi in the entertainment room. Outside, a private pool ensures a resort feel guests will love.    How to buy property in Bali as a foreigner  We’ve looked at some of the why and the what, now let’s get down to business and look at how exactly to get into the property market in Bali as a foreigner. As you might expect, it’s not as simple as signing some papers and getting the keys.   The most common method is to enter into a leasehold agreement. This essentially means you have a long-term holiday home and can lease property for 25 to 30 years, or extend up to 80 years! It’s like a VIP pass to Bali without needing to own the land.   There is also the “right of use” title, known locally as “Hak Pakai”. This valuable property title has some prerequisites though: you need a temporary or permanent residential permit; or a retirement visa if you’re over 55 years old. You can have one “right of use” title in your name and will also have to consider the price and property size restrictions that apply to this title. A “right of use” title comes with an initial term of 30 years, which can be extended by 20 years, then renewed again for 30 years after the first 50 years… and so on.    However, we strongly recommend seeking the advice of experts when it comes to investing in property in Bali. That’s where we come in!    Ready to Invest in Property in Bali?      Investing in Bali's property market offers an enticing opportunity if you’re looking to diversify your portfolio or start your property journey. With its breathtaking landscapes, vibrant cultural heritage, and investor-friendly environment, Bali draws millions of tourists annually, driving strong demand for accommodations like villas.  However, it's crucial for investors to perform careful due diligence, consult with experts, and understand the legal and regulatory landscape of property ownership in Indonesia. Bali Coconut Living is here to assist with expertise and a range of properties. So let’s get started!  In Seminyak, Umalas, Jimbaran, Canggu, and Uluwatu, there are many Balinese villas in our portfolio, available both for rent and Investment on leasehold or freehold terms. Visit our website or call us through +62 361 847 6727 if you have any queries or want to know more about some of our listed properties.

What are the advantages of buying rural property in Bali? Considering that Bali is one of the fastest-growing real estate markets in the world, it’s no surprise that investors are looking for rural properties to invest in or to make their own. The popular tourist towns of Seminyak, Canggu, Uluwatu, Sanur and Kuta are all but saturated and crowded thanks to high demand, yet there are people who yearn to be amongst Bali’s fabled natural beauty and mesmerizing rice terraces. What better way to appreciate the island, and rejuvenate in its healing ambiance than to be surrounded by virgin lands and quaint Balinese villages? In addition to affordability, there are lots of other advantages to buying rural property in Bali. Let’s take a look at some of the more popular reasons. Advantages of Buying Rural Property In Bali Owning a rural property in Bali comes with plenty of advantages alongside opportunities for investors to expand their property portfolio into the quieter side of Bali. Here are just a few: Affordability It goes without saying that prices for land and rural property in the less developed areas of Bali would be generally lower than in more popular tourist destinations. This can be a major advantage if you are on a budget considering that real estate is largely driven by location. Lower investments mean you can invest in more rural property, instead of just one in an overdeveloped area. Space Imagine what you could do with all that extra space when you own a rural property here in Bali. While Seminyak, Canggu and Kuta are always in demand, these areas lack space due to overdevelopment. Unless you were one of the earlier investors, a congested tourist town means a lack of space and compromise on layout or views. A rural property in most cases would come with more land thanks to affordable rates and under-development. You could expand, grow, build and create something truly unforgettable! Long-Term Opportunity The past decades have shown us how quickly areas are being developed all across south Bali. Just 10 years ago hardly anyone had heard of Canggu and look at what a thriving hub it is now! There is opportunity in a rural property in Bali, and while there is no guarantee, the rural property that you’re investing in could potentially increase in value and become high in demand with time. You can invest now in an affordable property and enjoy potential high returns in the future. Authentic Cultural Experience Living in a rural property allows you to immerse yourself in the traditional Balinese way of life and experience the island's rich culture firsthand. There is nothing better than waking up in the cool clean morning air with unimpeded rice fields or mountain views and hearing nothing but the waves in the distance or the chirping of the birds. Instead of stressing about traffic, you can enjoy leisurely walks along quiet country roads and be greeted by friendly locals as they go about their day. How To Find Affordable Rural Areas Houses In Bali? Rural properties in Bali may be few and far in between, and there could also be disadvantages to living so far away from town. This would include a lack of amenities and facilities and the distance to and from necessities like schools, hospitals, dining, entertainment and supermarkets. A good compromise would be to choose an area that would give you the best of both worlds – a mix of the charms of rural living and the easy conveniences of modern living. One such area would be Uluwatu, in the southern Bukit peninsula of Bali, home to some of the island’s best white sand beaches. Uluwatu lets you stay close enough to all of today’s modern conveniences and essentials but with openness and space away from the hustle and bustle. Let’s take a look at some of our most in-demand Uluwatu villas available on the market today. Villa Malicot A sprawling 722 sqm property on 1800 sqm of land, Villa Malicot is the perfect home with 6 stunning bedrooms with enough space for everyone. The main building comprises a light-filled kitchen and an open-plan living and dining area, an infinity pool with a pool deck and sun loungers, 5 en-suite bedrooms, a storage area, or a maid’s room. The property is surrounded by a lush tropical garden. There’s a gazebo with an outdoor living space and a parking space. The guest house has 1 en-suite bedroom, a kitchenette, an open dining and seating area, a plunge pool and a garden. Tinkerbell Villa 1 A premium villa in the prime location of Bingin, just a short stroll from Bingin Beach, Tinkerbell Villa 1 comes with fully enclosed living areas, three extraordinarily spacious bedrooms with walk-in wardrobes and marble bathrooms with premium black tapware, and multiple skylights and windows. From the open plan living room, you step out into a gazebo area with electric louvers, a BBQ entertaining area with smart TV with outdoor seating, and dining. The villa comes with a full designer kitchen with a double-door fridge, Electrolux appliances, a guest bathroom, full storage, and a laundry room with cabinetry and a washing machine. The villa comes with a full one-year warranty and a five-year waterproofing warranty. Villa Ecica A charming and modern, visually striking rural property with desert-inspired décor against a clean white background and natural earth-toned accents for a cozy and welcoming ambiance, featuring large black framed arched windows for maximum natural light and added textures and layers. Villa Ecica comes with two bedrooms with spacious ensuites and an open-plan kitchen alongside a closed living space under vaulted ceilings with beautiful wooden arched doorways and timber accents adding warmth to the space. Outside, there is a pool, a covered seating area and a parking space. Ready to find your Uluwatu villas in Bali? Contact us now at Bali Coconut Living, a Seminyak-based villa property agent that is always ready to serve you if you need assistance in buying, selling, and even maintaining a villa for your passive income. We have hundreds of wonderful Bali villas whether freehold or leasehold for sale and rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran, Nusa Dua, and Canggu. Feel free to browse all of our properties and if you have any questions or inquiries, contact us now, or pick up the phone and call us at +62 361 847 6727.

Smart investors and potential homeowners looking to get themselves a slice of Bali’s coveted villa or real estate market can consider an off-plan Bali property. Investing into a luxury Bali villa or a Bali property would usually require large amounts of capital, but with an off-plan property, you can get yourself a Bali villa and get your foot on the property ladder at a much lower price when compared to purchasing a new build villa or an existing villa that is currently available on the property market. In addition to lower capital, you can also expect multiple returns on investments and an impressive addition to your property portfolio by obtaining an off-plan Bali property in one of the most sought-after locations on earth. What Is An Off-Plan Property? An off-plan property is a property or a villa that has not yet been built. For example, if you’re looking to buy an off-plan Bali villa, then you’re essentially entering into an agreement with the property developer to purchase a Bali villa based on plans, blueprints, measurements, and artist’s rendering. Construction has not yet begun, and there is no physical villa or building for you to survey or look at. You’re probably wondering if an off-plan property is a good idea – there are actually lots of benefits to purchasing an off-plan property here in Bali. Here are just a few: Benefits Of Purchasing An Off-Plan Bali Property Lower Prices & Great Discounts The Bali property market may still be more affordable than in other parts of the world where tourism is booming and land is scarce like Hawaii, Maldives, or Phuket, but it would still require a hefty amount of capital to be able to secure yourself a beautiful Bali luxury villa. The south of the island is pretty much saturated but with an off-plan Bali property, you will be able to secure yourself a brand new Bali villa at a much lower price than current market value and in a new area and with great discounts thrown in. This is because the developer would need capital to get the project off the ground. They also want to sell as many units as possible to demonstrate a certain level of sales. Potential investors can enjoy all the financial advantages promised to early bird buyers at this initial stage. Strong Potential For Capital Appreciation The Bali property and real estate market is booming especially now that tourism in Bali is at its peak. It is estimated that more than 5 million tourists will visit Bali by the end of 2023, and this trend is expected to continue well into the future minus unforeseen circumstances or events. With so many visitors to the island, there will continue to be strong demand for holiday homes or luxury Bali villas; this means that you can make a profit from significant rental income due to holiday renters. With a buy-and-hold strategy, you’re also set to make a substantial profit and multiple returns on investments from your off-plan Bali property if and when you choose to sell it in the future. Customized Design & Personalized Interiors One of the very best things about purchasing an off-plan Bali property is having a say in its design elements including interior decoration, furnishings, finishing, and layout. This is a great way to create your very own dream Bali villa and have it designed and decorated according to your taste and preferences. Curious to see some of Bali’s most highly-valued off-plan properties? Let’s take a look: Casa Momentai Once built, this beautiful and modern two-story townhome will come with one bedroom a gorgeous ensuite, and a small home office that can be converted into a guest bedroom. The property is designed with a closed living area, a fully-equipped kitchenette, and an outdoor lounge area overlooking the pool. Interiors are light and bright, elegant and sophisticated with the bedroom located on the top floor. Measuring 159 sqm on 150 sqm of land, construction on Casa Momentai will begin after a 30% down payment, with a completion period of 10 months, and is available for sale (with free management and maintenance fee of 1 year). The Oaks Villa A chic and trendy, white-on-white Hacienda-style property with wide arched doorways and windows and lots of open spaces including an open plan living and dining area overlooking the swimming pool that runs along the side of the villa. Tropical accents complement the interior’s neutral palettes with eye-catching design elements like louvered wooden finishing with horizontal slats. Measuring 275 sqm on 200 sqm of land, the villa will have 3 bedrooms with ensuites, a kitchen, a guest bathroom, a maid’s room with an ensuite, and a covered car park. Construction will begin after a 50% down payment, with an estimated 12-month completion date. Villa El Cuyo Elegant, industrial-style villas overlooking the rice fields in Gianyar. There are 6 units available all with dark roofs, brick-accented walls, wood finishing, and dark frames. The living and dining area is separated from both bedrooms with a rectangular pool right down the middle. Floor-to-ceiling glass windows and skylights mean naturally light and bright spaces with a slight industrial accent and gorgeous semi-open bathrooms. Measuring 80 sqm on 135 sqm of land, construction will begin after a 30% down payment, with an estimated 12-month completion date. Mitigating Risks When Buying Off-Plan Bali Property  Just like everything else in real estate, there are also risks to buying an off-plan Bali property that could include you losing some or all of your deposits and some issues with the building itself, but this should be easily minimized with thorough due diligence. Research the developer well and ensure they have a history of successful developments before you invest. Another way to mitigate potential risks is to partner with a trusted and credible real estate partner & property agent like Bali Coconut Living so you can proceed with your off-plan Bali property with peace of mind and minimal risks.  Explore Off-Plan Properties With Bali Coconut Living Ready to enjoy remarkable capital appreciation from your property investment here in Bali? Contact us now at Bali Coconut Living, a Seminyak-based villa property agent that is always ready to serve you if you need assistance in buying, selling, and even maintaining a villa for your passive income. We have hundreds of wonderful Bali villas whether freehold or leasehold for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran, and Canggu. Feel free to browse all of our properties and if you have any questions or inquiries, do contact us or pick up the phone and call us at +62 361 847 6727.

Bali remains one of the world’s prime locations for real estate and villa investment, thanks to the great potential for property capital appreciation. This is largely due to the booming demand for luxury holiday villas by both local and international visitors to the island. Smart investors would already be able to outline how an investment into the Bali property and villa market would yield a high return on investments (ROIs) in just a few short years. After the pandemic, there have been consistent waves of tourists arriving, leaving, and returning to the island with locations in South Bali remaining the most popular. Experts predict that the Bali property market will continue on the up-trend, with a positive outlook throughout the industry in the upcoming years. If you’re a property investor looking for your slice of Bali’s thriving property market, you can do so feeling confident of strong potential capital appreciation on your investments. What Does Capital Appreciation Mean? Capital appreciation happens when the market price of the Bali property that you’ve invested in has increased, meaning that you are now making money and profiting off of your investments. It is the difference between the purchase price and the selling price of an investment. You know that your Bali property is enjoying capital appreciation when you can confidently see its value growing over time. Another way to explain capital appreciation is when you see your property’s value increasing over what you originally paid for it. Bali is in the middle of a tourism boom. As of July 2023, the island received 541,353 visitors to the island. In fact, the local government has projected that Bali will receive a total of 5.5 million tourists by the time December rolls around. This can only mean positive growth for Bali’s villa and property markets, meaning you can look forward to a strong potential for capital appreciation on your Bali investments. Bali As An Investment Destination There are a number of factors that make Bali an attractive investment destination, leading to great potential for capital appreciation. In addition to a strong tourism industry, the island is popular for a number of other reasons including: Growing Economy: Analysts at McKinsey have predicted that Indonesia will become one of the largest economies globally by 2030; this is good news for all, especially the Bali real estate and property market. Simplified Policies: The Indonesian government has simplified policies to make it easier for foreigners to invest in property in Bali. These policies include reducing the minimum investment amount and streamlining the taxation system and property transfer process. Affordable Property Prices: Compared to other popular tourist destinations, such as Hawaii, Phuket, or Maldives, property prices in Bali are still relatively affordable. There is still lots of potential to enjoy great capital appreciation on your investment here in Bali. Beautiful Island: Bali is home to one of the world’s most fascinating cultures - the only one of its kind. Paired with the warmth and hospitality of the Balinese people & the island’s astounding beauty makes it a favorite with investors and tourists from around the globe. What Are The Best Places To Invest In Bali? The best places to invest in Bali are the neighborhoods that are popular with tourists and expats. High-demand areas would include the fashionable coastal town of Seminyak and its neighboring sisters Petitenget and Umalas.  Canggu is always in high demand - in fact, property prices in Berawa, Echo Beach, Batu Mejan, Batu Bolong, and even Pererenan are currently at an all-time high.   The laid-back and elegant Sanur as well as the glitzy seaside towns of Nusa Dua and Jimbaran, Uluwatu, and Pecatu in the southernmost peninsula are also great neighborhoods to invest in. Kuta and Legian are also still very popular with certain groups of tourists, thanks to their unique character and charm. The artistic and cultural hub of Bali, Ubud is another area to consider when investing in luxury villas in Bali. Here are some of the most sought-after luxury Bali villas available for sale with strong potential for capital appreciation. Beautiful Luxury Bali Villas For Sale Villa Amati, Ubud A regal and luxurious property built in the classic Javanese joglo style, perfect for a classic Indonesian royal experience. A collection of 5 individual joglos on 3,730 sqm of verdant tropical land - 4 are private bedrooms with ensuites with its own enclosed living and dining area and terrace/balcony. The larger joglo, which is known as the Pendopo, houses the communal living & dining area. The entire property is decorated in exotic silks and fabrics and beautifully carved furniture and fixtures. Perched atop a small hill, it comes with an infinity pool overlooking the ravine below and the jungles beyond. Villa Teduh, Seminyak A stunning and modern property with a contemporary design, a style that is popular style tourists in Seminyak. Featuring clean lines, open spaces, and neutral color palettes, the villa is built on 270 sqm of land and comes with 2 floors, 4 bedrooms with ensuites, a fully equipped kitchen, and a rectangular swimming pool. There is a balcony on the second floor and rooftop terrace, a closed living and dining area, and a parking space. Villa Teduh is centrally located to the hottest venues in Seminyak with easy access to Seminyak beach. It’s a convenient holiday home Villa Mahasari, Berawa A fashionable and trendy villa in Berawa with tasteful design features that instantly turns it into a warm & sophisticated, tropical holiday home. Modern and elegant, white exteriors are enhanced by darkened window frames, the emerald green grass, and the cerulean blue of the pool. Inside, it is both stylish and cozy, functional and stylish, bright and intimate.  Built on 480 sqm of land, Villa Mahasari comes with 5 beautifully appointed bedrooms with ensuites across two floors, a closed living and dining area, and a fully equipped kitchen. Invest In A Luxury Bali Villa With Bali Coconut Living Ready to enjoy remarkable capital appreciation from your property investment here in Bali? Contact us now at Bali Coconut Living, a Seminyak-based villa property agent that is always ready to serve you if you need assistance in buying, selling, and even maintaining a villa for your passive income. We have hundreds of wonderful Bali villas whether freehold or leasehold for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran, and Canggu. Feel free to browse all of our properties and if you have any questions or inquiries, do contact us or pick up the phone and call us at +62 361 847 6727.

If you’re reading this then you’re probably in the market to buy property in Bali. This is a great move as you could enjoy high, consistent returns over the long run. Land and property will always be in demand, especially in a popular tourist destination like Bali. Turning your Bali property into a vacation rental could generate a passive income no matter where you are in the world. You can even choose to stay in the property when you’re in town.  But before you sign on the dotted line, it’s important to do your due diligence whether you’re looking to buy Bali real estate for sale, invest in Bali property rentals, a Bali beach house or a luxury villa. The first thing that a smart investor would do is to book a property consultation with one of Bali’s best and most trusted property agencies. Having a great property partner would ease your real estate journey significantly. In addition to helping you navigate Indonesia’s complicated property laws and landscape, your property partner will assist you as you negotiate with property owners, notaries, lawyers, the banjar and other local authorities. A certified property agent can also keep you from getting scammed. There have been cases here in Bali where property “owners” have run off with deposits! So if you’re looking for a property business partner and a property agent in Bali, look no further than Bali Coconut Living. We’re experts in Bali property law and a Seminyak-based villa property agent that is always ready to serve you if you need assistance in buying, selling, and even maintaining a villa. Now that we’ve covered the most important points, let’s look at buying the property of your dreams here in Bali. One of the most important things to understand is the legalities and Indonesian property law There are 3 main types of property ownership here in Indonesia and if you’re a foreign citizen, it would be good to know early on that foreigners aren’t legally allowed to own land or property here. But you could always “purchase” a leasehold property. Simply put, a “lease” means long-term rent – you “own” the property for a number of years whether 25 or 70 years, depending on your agreement with the owner. This does not include the land that the property stands on. Payments can either be made annually, or you can make full payments upfront to cover the entire duration of the lease. Once the lease has expired, you can negotiate to renew the lease or the property will be returned to the rightful owner and reverted back to its freehold status. Ready to buy your own property in Bali? Contact Bali Coconut Living now, and feel free to browse through our listings of freehold or leasehold Bali property available for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran and Canggu.

How much does it cost to buy a property in Bali? Well, the answer would depend on a number of factors such as property type (whether villa, office, or land), size, location, building type, permits, road access, amenities, facilities, and more.   It would be tricky for anyone to be able to give you a solid number as all of these things would have to be considered. After some extensive research, you would most likely discover that you’d need at least USD 50,000 just to lease the land.   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 metre.   For example, a beautiful and luxurious 2-bedroom villa in Uluwatu would cost you approximately USD 120,000 to purchase while a prime land in Canggu would be priced at approximately USD 35,000 per 100 sqm.   Before the pandemic, land and villas in Bali were notoriously overpriced. Fortunately or unfortunately, asking prices are now between 30 - 50% below pre-Covid-19 asking prices. Prices for villas have also been slashed by as much as 85%!   This means that now is the right time for you to take advantage of lower prices and low-interest rates. 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.   Here are some other important figures that you should consider when it comes to buying and owning property in Bali.   Average building cost per sqm: USD 500-1000. This is not inclusive of finishing, decoration, furniture, amenities, etc. Be smart and squirrel away some extra funds for when construction costs increase, as they usually do for any number of reasons. Average utility costs per month: USD 150-200. You’ll have to pay for electricity, water, WIFI, cable TV, cleaning fees, garbage pickup fees, Banjar fees, etc. Bear in mind that the electricity bill will increase if you have a pool and use the AC constantly.   Minimum monthly staff salary: USD 150. This would obviously vary depending on roles and years of experience. For example, the Villa Manager’s salary would cost more than the gardeners. Regardless, it is a wonderful way to help the local economy by providing employment.   Do set aside some money for your marketing and sales efforts too, if you’re planning to rent out your villa while you’re away. You’ll also need to set aside cash for applications, permits, licenses, and the like. If you’d like more info on this, feel free to contact a member of our staff.   Ready to own property 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 apartments, available for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran, and Canggu.

So you’ve finally purchased your dream home here in Bali Villa ! Congratulations! Now that you’re a proud homeowner, there is going to be plenty to keep you busy, from maintenance to upkeep and utilities.   One of the most important matters that you should think about as a homeowner is Property Insurance. Should you get one and what is it for? Firstly, let’s take a look at the types of Property Insurance that are available in Indonesia.   In general, there are two: Homeowners Insurance and Business Insurance. If you’re not planning to run a business out of your home, then the obvious choice would definitely be the Homeowners Insurance. Homeowners Insurance Homeowners insurance is for private homes owned by a person and not a business. The idea behind home insurance is to cover losses and damages to your residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.   Every homeowner insurance is different depending on the company and the policy that you choose. Remember to properly understand what is and isn’t covered; ask a lot of questions and read the fine print. In general though with any policy, your actual, physical dwelling should be covered, as well as some other structures on the property, like your garage, fence, pool, and driveway.   Based on the Indonesian Fire Insurance Standard Policy (PSAKI), a home insurance policy would cover damages caused by the following: Fire Lightning Explosion Fall of Airplanes Smoke Wind / Hail You can also extend your policy to cover the following: Storm Riot Protection of valuables Protection if an injury to a third party Financial protection in the event of damages to the property of the insured Temporary residence accommodation if the house/building is damaged and cannot be inhabited again   Bonus Tip: If you’re planning to rent out your property, you may want to consider applying for landlord insurance for unexpected damages that can cover furniture, appliances, and other items. The coverage can be extended to cover legal costs, loss of income, and more.   It would also be wise to also take into consideration the possible risks of earthquakes, volcanoes, and Tsunami, as Indonesia sits on the “ring of fire”.  We’ll never know what the future holds but it is always best to protect yourself, your loved ones, and your investment the best possible way there is.   Ready to get started? There are many internationally-renowned insurance companies here in Bali, including Allianz, AXA, MSIG, and more. You can contact one, or all and speak to the agents individually.   You could also speak to other homeowners here in Bali and ask them for their tips and advice. Based on all your research, we are sure that you’d make the right decision when it comes to protecting your home and your loved ones.

Thinking of finally taking the leap and making that long-awaited move to your paradise island home here in Bali? Before you pack your bags, you probably need to find your ideal Bali luxury villa to move into once you’re here.   The first thing you need to know is that there are hundreds of beautiful luxury Bali villas to choose from, especially here in South Bali in the popular tourists’ areas of Seminyak, Umalas and Canggu and even further south in the limestone peninsular in Uluwatu, Bingin and Ungasan.   These stunning villas are available for sale or rent, whether yearly, monthly, weekly or daily, but if you’re looking for a long-term villa rental here in Bali, it would be best to consider a yearly rental which will give you more value-add, peace of mind and the feeling of settling into your very own home without having to worry about monthly rent!   So how much does it cost to rent a property here in Bali?   Well, the price would vary. For as low as IDR 200,000,0000 a year, you could get yourself a beautiful, stunning, modern yet tropical 2-4 bedroomed luxury villa in the heart of the most popular areas that will come with a pool, garden, stunning interiors and all of today’s amenities like flat-screen TV, security cameras, air-conditioning and fans, a fully-equipped kitchen, expansive living and dining areas, bedrooms with floor-to-ceiling glass windows and gorgeous furnishings.   Be sure to also check if your yearly rent comes with daily or weekly cleaning services, night security and electricity.   A great example of a spectacular 2-bedroom villa is Villa Alder, a fantastic 2-bedroomed home to escape to in the cool and laid-back ambience of Ungasan. It’s the perfect starter home for couples or small families. Meanwhile, in Umalas, the 4-bedroomed Villa Mina is a sublime haven, away from the every day with seamless living and dining areas and smooth tropical-inspired décor. Prefer the hip and happening Canggu? Villa Panama is sleek, modern and contemporary with a slight bohemian touch, 3 bedrooms and indoor-outdoor living and dining areas.   Ready to find your dream home here in Bali? Contact us now at Bali Coconut Living, a Seminyak-based villa property agent that is always ready to serve you if you need assistance in buying, selling, and even maintaining a villa for your passive income.   We have hundreds of wonderful Bali villas whether freehold or leasehold for sale and for rent in all of the most popular areas including Seminyak, Umalas, Uluwatu, Jimbaran and Canggu.   Feel free to browse all of our properties and if you have any questions or inquiries, do contact us by clicking on this link, or pick up the phone and call us at +62 361 847 6727.

There are two ways to invest in a property in Bali. You can either buy a freehold villa or buy freehold land in Bali. The former is usually for the more aggressive investors who would risk the initial capital cost in order to generate cash over time. The latter is usually for the more conservative investors who would rather preserve their wealth.   Land, especially beachfront land in the Berawa area, is highly likely to see a rise in value. Such land can be a safe haven with low tax that may be sold later for a higher price, which can potentially beat inflation and has better returns compared to most bank interest rates. The price of land could see a steady increase compared to gold, and it is potentially liquid as future developers prefer to build on empty land — not to mention how competitive the property market will be over the next decade.   Beachfront land for sale in Canggu at Padang Linjong   Here we present a 5 Are (500 square meters) parcel near the beach that is already valued at IDR 8,000,000,000 total price. A villa that is constructed on this land will likely be valued at at least IDR 14 billion. A single villa complex constructed on 5 Are, assuming that we would use 300 square meters for the building, will be able to accommodate at least 3 guests.   Currently, a brick road leads to the quiet and serene area, where an apartment building has already stood. It would also be very profitable to a future developer to build a cafe or another place of entertainment so that residents don’t need to venture too far for entertainment and basic needs.   16 Are land for sale in Canggu   A few hundred meters from Pantai Munduk Catu, a wide-open field among villas and private houses is ready for sale, currently valued at IDR 8,750,000,000 per 5 Are. You could choose to acquire a minimum of 5 Are or the full 16 Are at a great price of IDR 25,6 billion.   For comparison, Villa Gloria with a 14 Are total land size can fetch up to IDR 30.8 billion. You could expect at least an addition of IDR 10 billion from a land investment with 16 Are, provided that the developer is willing to compete with hotels, villas, and high-end establishments in the future.   Browse Bali Coconut Living for more properties to choose from.   This article is by no means a financial advice and estimated returns are speculative. Please consult with a qualified financial advisor to accurately gauge the risks and opportunities of property investing.

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.

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.