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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If you want quality and a reasonable price, definitely check these guys out” - David Kim Two Guns Tattoo https://www.instagram.com/p/DBLaGPdTHO1/?img_index=1 “Awesome studio & artists. Dodo is amazing, I get all my work in Bali done by him, and have for a few years now. Highly recommend Two Guns & Dodo 🔥” - Isaac S. Tattoo Hut Bali https://www.instagram.com/p/DBU5zhPyzLH/ “Booked my tattoo in January and it was such an easy process. When we arrived in Bali the tattoo hut team was able to check sizing and design to ensure I was happy with the tattoo. All the tattoo hut members were extremely friendly and funny which made the experience much more enjoyable. Jony was my artist and he did such an amazing job. He is very professional and his style is impeccable. My whole arm sleeve only took 2 days! I highly recommend to go to tattoo hut!!” - James Fernandez Addicted Ink Tattoo Studio Bali https://www.instagram.com/p/C9W7-Uip1j6/?hl=en “The artists were so friendly and professional. 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Awesome works.” - melvin lee 3. Know About The Tattoo Prices In Bali: Another critical concern people usually have before getting inked is that pleasurable tattoos come at what cost? People concerned about getting an appointment with a tattoo artist or studio must know they can do so online or in person. However, many tourists schedule their tattoo Bali appointments in the last days of Bali vacation things to do, because of following the precautions. Up to two weeks of getting a tattoo, you can’t go underwater, surfing, or swimming.  You can only pay at Bali Tattoo Parlors with Indonesian Rupiah because many studios do not accept other currencies or have credit card machines. There is no need to schedule an appointment for a small tattoo, which can be done in a few minutes. 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Also, only the clergies, rulers, and the “elite of shamans” used to wear these tattoos. So, tattooing was only allowed for the people in power and those considered closer to god. Though you will find many secular tattoo designs in Balinese culture today, traditionally, these designs draw inspiration from nature and Hindu gods and goddesses. Further, you will notice the presence of Balinese weapons like chains, daggers, maces, and axes in the design. Moreover, Ongkara, Ung, Ang, and Mang are symbolic Balinese scriptures popularly depicted in tattoos. In addition. Rangda, Kala Raksa, Kala, and other evil figures were common in traditional Bali tattoos.  Frequently Asked Questions (FAQs) Is it safe to get a tattoo in Bali? If you are careful enough, getting a tattoo in Bali is safe. This means you have to do your research when choosing an artist. Get proper information about the studio and the artist. Ensure you have a good design and look for hygiene in the studio. 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