What Should I Consider When Buying A House In Bali?

Feb 26, 2024

Last Updated on: Jul 8, 2025

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Buying a house in Bali offers a tropical lifestyle with an array of cultural attractions, a warm climate, and stunning natural beauty. However, prospective buyers should be aware of the unique property ownership laws in Indonesia, which may differ significantly from those in other countries. Navigating these regulations to find the ideal property requires a clear understanding of the available options for foreign investors, as well as knowledge of the legal framework surrounding land ownership and property rights in Bali. Explore Bali houses for sale with Exotiq Property to embark on your journey of discovering the perfect home in this captivating destination.

When considering properties in Bali, it’s important to assess various factors to ensure a sound investment. Location is paramount, as different areas offer distinct advantages depending on lifestyle preferences and investment goals. Property features, potential for appreciation, and proximity to amenities are also important considerations. Buyers should conduct thorough due diligence on the legalities of the transaction, including land titles, building permits, and zoning regulations, to ensure that their investment is protected.

Understanding Property Ownership In Bali

Understanding Property Ownership In Bali

When considering the acquisition of property in Bali, it is imperative to grasp the various ownership titles offered under Indonesian property laws and the distinctive purchasing options available to foreigners. Equally crucial is understanding the legal procedures to ensure a secure transaction.

Purchasing Options For Foreigners

Foreigners interested in Bali real estate must navigate Indonesian property laws that are designed to protect local interests. The most common route is a leasehold property, which grants the right to use the land for a term that is usually 25 to 30 years and can be extended. Alternatively, a foreigner may invest in a PMA company, which can acquire property under a Hak Guna Bangunan title. Another option is to enter an agreement with a local nominee or Indonesian nominee system, although this method involves a higher degree of risk and is less favored.

Executing due diligence is paramount before purchasing property in Bali. This involves a thorough check of the land certificate and ownership certificate, ensuring that there are no discrepancies. It is advisable to work with a reputable notary and lawyer to conduct these verifications. The due diligence process includes confirming that the building permit (IMB), PBB tax payment (property tax), and NPWP (tax number) are all in order. Prospective buyers should also use a qualified real estate agent to aid in navigating the intricacies of Bali’s property market.

Read Also: Planning A Vacation To Bali? Read This Blog!

Factors To Consider When Buying

A House In Bali

When looking to buy a house in Bali, potential homeowners need to carefully evaluate several critical aspects to ensure a sound investment. From the specific location to the financial aspects, each factor plays a crucial part in the purchasing process.

Location And Accessibility

The location of property in Bali is one of the most significant considerations. Popular areas such as Seminyak, Canggu, Ubud, Jimbaran, Uluwatu, Nusa Dua, and Sanur offer a range of options from bustling nightlife to tranquil beachfront. Proximity to beaches, zoning restrictions, road access, availability of electricity, internet, and accessibility to local communities like the Banjar (village council) is essential. For instance, Seminyak and Canggu are known for their lively scenes and surf culture, while Ubud captivates with its natural beauty and arts community.

  • Popular Regions with Unique Features:
  • Seminyak: Trendy, upscale area well-connected and with a high concentration of shops and eateries.
  • Canggu: Known for cool cafes, vibrant nightlife, and surfing spots.
  • Ubud: The cultural heart, surrounded by rice fields, and a hub for wellness.
  • Jimbaran: Offers a calmer environment with seafood restaurants and sunsets.
  • Nusa Dua: Well-organized resort area with pristine beaches.
  • Sanur: Quieter pace with a mix of traditional and modern Bali, friendly for families.

Environmental And Structural Concerns

Environmental And Structural Concerns

The dream of owning a tropical paradise comes with its environmental challenges. Bali’s climate can contribute to rust, mold, termites, and pests, which potential homeowners should consider, especially when looking at an existing home. Swimming pools may need regular maintenance due to these issues. Assessing the land size, natural orientation and views, well access, flood risk, potential drainage problems, and any setbacks from the property boundaries is crucial before making a final decision.

Environmental Factors to Check:

  • Risk of flood or water damage
  • Presence of mold or pests
  • Adequate drainage systems
  • Maintenance required for swimming pool and other amenities

Financial Implications

The financial side of buying property in Bali can be complex, particularly for foreign buyers. Understanding the types of leases and licenses required is paramount. The Bali real estate market also varies significantly, so gaining information on luxury property prices and average cost of living can inform your budget. When considering financing, options such as a mortgage from a local bank, developer financing, or making a cash payment should be reviewed. Moreover, if the purchase is for investment, evaluating potential rental income is essential.

Conclusion

When purchasing property in Bali, buyers must navigate Indonesian property laws and understand the types of property titles available to foreigners, such as Hak Pakai, Hak Milik, and Hak Guna Bangunan. It is imperative to conduct thorough due diligence, including legal checks and understanding market conditions. Considering the location and intended use of the property—whether for investment or residence—is critical. With adequate preparation and insight into the Balinese real estate market, investors can make informed decisions for successful property acquisition.

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Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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However, there are also guest houses and budget hotels that serve visitors at low cost.  Those who want to have fun with family or friends can try camping near their target destination, which will add an adventurous touch to your stay. Exploring Madain Saleh Nabataean civilizations were significant in the past for their traditional ways of living and survival. The present landmarks that represent this civilization refer to Madain Saleh or Hegra and Petra in Jordan. These sites present the remains of ancient people and their art views on the rocks that make everyone curious about their lives.  UNESCO World Heritage recognizes Madain Saleh for its unique beauty and preservation. It's like an open-air museum with a mystery of living secrets. Visitors capture the arts on rocks and try to get back into their lives.  However, are you going to visit the whole landmark? Obviously, you want to visit the famous places to make the most of your time. For that reason, include Qasr Al Farid, Jabal Ithlib, and Diwan, which attract visitors for their natural beauty and peaceful surroundings. Under the clear sky and during the sunset, these landmarks turn into magical elements everyone wants to remember forever.  Now, what do you think about how you will visit the Madain Saleh? Through a guided tour or a self-adventure? Well, it's pretty easy to decide that first-time travelers should go for guided tours. Professional guides let you know the things you will never learn yourself. However, if you have visited Hegra before, you can visit it yourself and have an adventure anyway. Exploring Al Ula  Similar to Madain Saleh, Al Ula is also home to ancient civilizations. The place represents the living and trading skills of earlier Arabs that ultimately contributed to the development of the kingdom.  During the history of hundreds of years, Al Ula preserves the beauty of ancient people and keeps their traditions alive. In short, Al Ula offers a mix of nature and history in one place. This is a reason visitors include Al Ula in their target list to visit. Pilgrims also plan group tours to Al Ula to experience once-in-a-lifetime beauty. And the best thing is that Umrah packages also facilitate such tours so that pilgrims can have a good time.  Al Ula is famous for the places like Al Ula's old town, Al Khuraiba, and ancient rocks. The giant tombs and their traditional building take visitors back in the past. Another must-see view in Al Ula is an elephant rock that looks huge. The rock undergoes natural rock formation processes that add to its beauty uniquely.  What else you can do there? Well, Al Ula Valley allows you to try activities like hiking, climbing, and stargazing. Families can camp under the sky and experience stargazing together. Tips for Pilgrims  Since pilgrims are short on time, they want to make the most of their time. They also look for places that have a religious background or at least offer serenity to their visit. This is because the main purpose of their visit is to perform a pilgrimage. All they want to experience is something unique and relaxing while connecting with their spirituality as well. So, should they visit historical landmarks?  Is visiting Madain Saleh and Al Ula worth their time? First things first, historical places offer a lot more to learn in a short time. They present the history of people and their ways of living and faith that help pilgrims relate with them. Similarly, Madain Saleh and Al Ula represent the history of people before Islam came to Saudi Arabia. Therefore, pilgrims learn more about how people used to live before the onset of Islam.  Not only this, the Saudi government also takes care of the pilgrim experience in every aspect. Therefore, it also maintains spiritual places at such a historical place that serve pilgrims even during their trip. 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