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Bali leasehold villas for sale: Finding and leasing property in Bali in 9 steps

bali leasehold villas for sale

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Finding Bali leasehold villas for sale can be challenging as the Indonesian real estate market is rising. Many foreigners try to find a cheap villa in Bali and end up leasing property in Bali, as this is the most cost-efficient way of investing in Bali real estate. But before buying your villa in Bali through leasehold, make sure you understand what leasehold in Bali is and know where to find Bali leasehold villas for sale.

Understand leasehold in Bali

Foreigners cannot own freehold land in Bali, which means they need to obtain property in other ways, such as through leasehold. Villa leaseholds in Bali are essentially long-term rental agreements, primarily valid for 30 years and extendable up to 80 years. With a leasehold agreement, foreigners can legally own and use the property for a specified period.

There is a way foreigners can buy freehold land in Bali, which is through a PT PMA. Many foreigners establish a PT PMA in Bali and still opt for leasing property in Bali, as leasing real estate has many benefits:

  • Leasing a villa or land in Bali is usually cheaper than buying with a freehold.
  • The tenant can use the property almost as if they own it, as they can make improvements, rent it out, or use it for business purposes (as long as the lease agreement allows them to do so).
  • Obtaining certificates such as Hak Pakai (HP) or Hak Guna Bangunan (HGB) is unnecessary when leasing a villa in Bali.
  • The tenant only pays a one-time 11% Lease Tax (at the moment of the transaction) and doesn’t have to pay the annual Land and Building Tax.

Before looking for Bali leasehold villas for sale and signing a lease agreement in Bali, ensure you understand the laws and regulations for Bali leasehold villas for sale, especially when buying them as an investment to generate rental income with Bali leasehold villas for sale.

Where to find Bali leasehold villas for sale?

Finding Bali leasehold villas for sale requires research, networking, and professional help. Whether you are looking to buy villas in Bali for personal use or as an investment property for renting out, consider engaging legal support to ensure a smooth and secure transaction. There are several ways to find Bali leasehold villas for sale.

Direct listing by owners

Searching for Bali real estate for sale by owner can sometimes result in direct listings from property owners looking to lease their villas. This method may allow you to negotiate directly with the owner and potentially secure a more favorable deal, especially if you’re looking for a long-term lease.

Local network

Using a local network is an excellent way to find villas for sale in Bali. Engage with locals, expats, or friends who might have insights into Bali’s real estate market. Often, word-of-mouth referrals can lead you to great deals, especially in sought-after areas such as Canggu, Pererenan, or Uluwatu. Joining community forums and social media groups focusing on Bali properties can also help you tap into the local network.

Real estate agent

Hiring a real estate agent is one of the most efficient ways to find Bali leasehold villas for sale. Look for agents who specialize in Bali properties, particularly in leasehold agreements. A good agent can guide you through the entire process, from finding Bali leasehold villas for sale that suit your preferences to negotiating the lease terms. Moreover, depending on your budget, they can provide options ranging from a modern villa in Bali to a cheap villa in Bali. Real estate agents usually have an extensive portfolio of properties, including Bali villas for rent, and have insights into market trends and legal requirements.

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How much is it to lease a villa in Bali?

The price of Bali leasehold villas for sale depends on several factors, such as location, style, used materials, and facilities. The average price of a villa in Bali is IDR 14.5 million ($943) per square meter, while the average rent price is IDR 84 million ($5,460) per year. The gross rental yield on villas in Bali is 43.4%.

How to buy a leasehold property in Bali?

Are you seeking Bali leasehold villas for sale? Follow these nine steps to buy a leasehold property in Bali.

Step 1: Research the Bali leasehold property market

Start by researching the Bali real estate market by focusing on ‘Bali leasehold villas for sale’ or ‘Bali villas for sale leasehold’. Note the difference between ‘leasehold property’ and ‘freehold property’. Keep an eye on areas close to Seminyak, Legian, Canggu, and other popular locations, and also explore options for cheap villas in Bali.

Step 2: Understand leasehold ownership

Learn what a leasehold property is. In Bali, a leasehold means that you don’t own the land but have the right to use it for a defined period. Compare this with freehold villas for sale in Bali to understand the differences.

Step 3: Set your budget

Understand how much it costs to buy a villa in Bali under leasehold. Research the average prices and decide your budget. Considering how much it is to lease a villa in Bali is especially important when planning to rent a villa.

Step 4: Work with a real estate agent

Find a reliable real estate agent specializing in ‘Bali real estate for sale by owner’ or leasehold properties. Look for listings like ‘modern villa Bali for sale’ or ‘Seminyak villas for sale’.

Step 5: Choose and inspect the Bali villa

Choose a property that suits your needs. There are a lot of Bali leasehold villas for Sale, so if you’re considering renting the villa out, explore the Bali villas for rent to understand the rental market. Visit the Bali leasehold villas for sale in person and inspect them carefully before buying.

Step 6: Legal due diligence and negotiation

Engage a legal advisor to conduct due diligence on the chosen property. Ensure the lease agreement is clearly outlined and negotiate terms, including possible extensions.

leasing a villa in bali as a foreigner

Step 7: Complete the transaction

Once you’re satisfied with the terms, proceed with the transaction. Pay the agreed amount and ensure that all legal documents are in order.

Step 8: Consider building improvements

If you’re interested in customizing the property, research how to build a villa in Bali to improve the building. Ensure that any improvements comply with local regulations, so working with a reputable agent is advisable.

Step 9: List your villa on booking platforms

To earn rental income, list your villa in Bali for rent on booking platforms such as Airbnb or Booking.com. Focus on marketing strategies to attract tenants.

Remember, buying a villa in Bali as a foreigner can be complex. Ensure you follow local regulations and work with reputable agents and legal advisors to safeguard your investment.

Consult with our expert real estate agent

The assistance of a real estate agent in Bali saves you time and avoids headaches when searching for Bali leasehold villas for sale. Imagine no more hassle in finding the right buyers or tenants, handling paperwork, or negotiating deals. The real estate agent takes property viewings, ensures smooth transactions, and helps you get the best value for your property. You can also seek assistance for just one specific aspect of the selling or renting process.

Interested in leasing a villa in Bali? Make your real estate journey smoother, and consult with our expert real estate agent to discover the possibilities for your villa in Bali.

Get help with buying a leasehold villa in Bali

Leave your name and email below – Our property expert in Bali will reach out to explain more on this topic and answer all your questions.

Frequently Asked Questions (FAQs)

What is a leasehold property?

A leasehold property is a real estate where you don’t own the land but have the right to use it for a specified period, usually over decades. In Bali, this is popular among foreigners as full ownership, known as freehold, is not permitted for them. With a leasehold, you can even rent out the property; for instance, a leasehold villa in Bali can be used for rental purposes.

How to find Bali leasehold villas for sale?

To find Bali leasehold villas for sale, search online real estate platforms and forums with keywords such as “Bali villas for sale leasehold.” Additionally, engage reputable real estate agents specializing in Bali properties, particularly in hotspots like Ubud, Seminyak, Canggu, and Ubud. They can provide invaluable insights and help in finding the ideal leasehold villa.

How to buy a villa in Bali?

Buying a villa in Bali involves several steps. First, understand the different types of property ownership in Bali. As a foreigner, your best option is a leasehold. Next, set a budget considering how much it costs to buy a villa in Bali. Engage a reputable real estate agent and legal advisor. Once you’ve chosen a property, conduct legal due diligence and negotiate terms to complete the transaction. For leasing, understand how much it is to lease a villa in Bali.

How to build a villa in Bali?

Building a villa in Bali starts with buying a piece of land. Foreigners can do so through leasehold. Hire a legal representative to help with due diligence and permits. Next, hire a reputable architect and construction company experienced in building villas in Bali. Ensure compliance with local building regulations and standards. It’s also essential to consider the location and style, such as a modern villa, to match market demand if you rent it out.

Can you sell a leasehold property in Bali?

Yes, you can sell a leasehold property in Bali. However, it’s essential to note that the buyer will only purchase the remaining lease period. Engage a reputable real estate agent familiar with Bali properties to help market and sell the property. It’s crucial to have all the legal paperwork in order and clearly outline the leasehold terms in the sale agreement.

How much does it cost to buy a villa in Bali?

The cost to buy a villa in Bali varies widely based on factors such as location, size, and type of property. Prices for a modest villa in less popular areas might start around IDR 100,000 ($6.50), while luxurious villas in prime locations like Seminyak or Canggu can go for over IDR 1 million ($65). It’s also important to consider ongoing costs such as maintenance and fees if it’s a leasehold property.

Bali property expertise call

Our Bali property expert call is here to help you address all your queries regarding buying property in Bali. We will cover all the essential topics, from land titles and visa requirements to local rules and regulations. We even guide you through the buying and building processes and offer insights into investment potentials and costs. Plus, we’ll recommend the best agents and agencies in Bali to help you make the most of your investment.

The best part? You can tailor the session to your specific needs by asking any questions you have.

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Get help with buying a leasehold villa in Bali

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Your Comprehensive Guide to Buying Property in Bali

Get help with buying a leasehold villa in Bali

Leave your name and email below – Our property expert in Bali will reach out to explain more on this topic and answer all your questions.