1. Additional stream of income
With inflation rates steadily increasing, generating a passive income to combat its impact becomes increasingly important. One lucrative avenue to consider is investing in Bali villa rentals, which offer impressive initial rental yields estimated at around 44.8%. Having your villa and renting it out to vacationers can generate a significant additional stream of income to offset the initial capital cost and enhance your financial stability.
2. Take advantage of appreciation
One of the significant advantages of buying a property over renting it is that you can take advantage of the property’s appreciation. Villas are great investments because, like most properties, their value increases, especially in prime locations like Bali.
3. Customization and personalization
Another compelling advantage of purchasing a villa in Bali is the freedom it gives you to customize your own home. Unlike buying a vacant plot of land, which requires you to shoulder significant expenses in constructing foundational structures, purchasing a villa allows you to enjoy an existing home while changing certain aspects, such as interior design, furnishing, and landscaping.
4. Deal with issues quickly
Having your property in Bali makes dealing with maintenance and repair issues easier. Having a water leak in your toilet? You won’t have to hurdle steps such as renting properties, where you have to inform, notify, and seek permission from the landlord or even fellow residents to make repairs that can take days. With your own property, you can immediately call a service provider for repairs, allowing you to resolve issues timely and ensuring minimal disruption to your daily life.
5. More and better privacy
As a tourist haven, Bali has many tourists and residents living on the island. Villas offer personal space and seclusion for those who want to stay on the down low. You can enjoy the utmost privacy in your private oasis without the intrusion of noisy crowds. Moreover, you can also equip advanced security measures to ensure your safety.
6. Have your own vacation or retirement home
Lastly, buying a villa evokes a sense of security from having your own holiday or retirement home. Unlike staying in rental properties, where availability and pricing can fluctuate, owning a villa provides a guaranteed place to stay whenever you want to visit Bali. A villa is ideal for people who love to retire in Bali since foreigners can obtain a KITAS or Second Home Visa.
So, why buy a villa in Bali?
As you have read, there are six reasons to buy a villa in Bali, which are:
- Renting the villa can generate an additional stream of income
- You can take advantage of the appreciation
- It is possible to customize and personalize the villa
- Easier to deal with issues quickly
- You receive more and better privacy
- You have your own vacation or retirement home
Costs and prices of a villa in Bali
Property costs vary depending on the location and size of the property. Villa prices range from IDR 7 million ($441) per m2 to IDR 27.4 million ($1,726).
Learn more about Bali property prices in this article.
How to buy a villa in Bali?
There are three ways for foreigners to buy a villa in Bali, and that is generally through:
- Leasehold: Foreigners can buy property via a leasehold agreement, typically valid for 25 years and extendable up to 80 years. It grants the right to own and use real estate for a specific period.
- PT PMA: Foreign investors can establish a PT PMA and buy property in Bali. This process provides an Investor KITAS and is considered one of the safest methods for foreigners to buy property in Bali.
- Hak Pakai (HP): This land title allows foreigners with a residency permit (like KITAS, KITAP, or Second Home Visa) to buy and use specific properties.
- Hak Guna Bangunan (HGB): This land title allows ownership over a property constructed on another’s land. Only Indonesian entities or companies (e.g., PT PMA) can obtain the HGB title.
- Passport: As of 2023, foreigners can buy property in Bali using only their passport, given certain conditions, such as maximum land size and a minimum property value, based on the region.
Establishing a PT PMA is often considered the most viable and safest for foreign investors, as it offers increased security and protection. To navigate the legal complexities, it is advisable to seek guidance from local experts to ensure a smooth setup of a foreign-owned company in Bali.
Thinking of buying a villa in Bali? Let us make it easy for you!
Bali offers incredible opportunities for villa ownership, whether for investment or as a personal retreat. From high rental yields to tropical luxury, there are plenty of reasons to invest. However, navigating the local real estate market and legal requirements can be complex. Our experts specialize in guiding clients through every step of the process, ensuring a smooth and secure transaction. Leave your details below, and we’ll contact you to provide tailored assistance, or email us directly at [email protected] for professional advice.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Frequently Asked Questions (FAQs)
Can foreigners buy a villa in Bali?
Yes, foreigners can buy a villa in Bali through a PT PMA, Hak Pakai title, Hak Guna Bangunan title, leasehold, or a passport. Buying a villa in Bali through a PT PMA is the most favorite option amongst foreigners.
Is a Bali villa a worthwhile investment?
Buying a villa in Bali can be a worthwhile investment, based on the high rental yields investors can make. Aside from the high potential for return on investment, having your own Bali villa also offers personal advantages, including having a vacation home when visiting the island.
Is it better to rent or buy in Bali?
If it’s better to rent or buy in Bali depends on your circumstances and priorities. Renting may be a sounder choice for those who don’t want to commit to long-term ownership. On the other side, buying can provide potential investment opportunities.
