Blog

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.