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Bali Investment

“know what you own, and why you own it…”

Land

Thursday, Jun 13

Process

Land | Plot

Buying land in Bali can be a daunting task, but our team can take care of everything for you.
From finding the perfect plot to advise on the different buying options.

To buy property on the island for investment purposes, you will need a partner.

The leasehold option is the best and most affordable method of acquisition due to certain laws.
It is also the recommended method for international buyers.

We work both directly with landowners and with agents throughout the island.
This is how we provide market-leading properties available for sale and leasehold.

There are a number of important rules and regulations that must be followed in order to legally buy or rent land in Bali.
We are experts in these cases, ensuring that all legal and regulatory requirements are met.

◊ The differences between buying “freehold” land and “rental” land in Bali.

◊ The process of building a villa, etc.

! The explanatory video will help you understand the rules and regulations that foreigners should know before investing in Bali.

Frequently Asked Questions

What is the difference between Freehold and Leasehold land?

The two main options for owning land in Bali for villa development purposes are freehold and leasehold.

Freehold means you own the land indefinitely.
This option is available exclusively for Indonesian residents.
It is therefore a rare option for international buyers and investment villas.

Leasehold is similar to Freehold in many ways, but you only hold the rights to the land for an agreed period of time.
It is important that international buyers have their name on the lease and the legal right to use the land for the duration of the lease.

Typically, the land is initially leased for 25-30 years, with the option to extend the lease at the current market value. The contract is certified by a notary, and some mandatory checks are carried out before the start of the lease.

Renting land in Bali is much cheaper than buying it, and provides the highest return on investment.

How long can I rent land in Bali?

The terms of a land lease in Bali are negotiated between the land owner and the individual or party interested in leasing the property.
A typical leasehold lasts for 25-30 years.
But some contracts are only for 7 years, while others can be longer than 40 years.
The figures refer to the original leasehold.

A leasehold agreement usually allows the lessee to extend the lease for a period similar to the original, but the price will reflect the updated market value of the land at the time of renewal.
The option to extend the lease is useful when a new villa is built on the property.

If the landowner agrees to a further extension of the lease, the land can be leased indefinitely.

Can foreigners buy land in Bali?

Foreigners can buy land in Bali, but there are a number of rules and regulations that must be followed.
Freehold land can only be purchased by Indonesian residents, but leasehold land can be purchased by foreigners.

There are also rules and regulations that must be followed in certain circumstances.
For example, renting out the villa as a vacation home on Airbnb and other platforms.
As in any country, taxes and fees are applicable to the rental income generated by the property.

Bali is one of the most picturesque and visited destination in the world.
This has led to many foreigners looking for land in Bali for investment purposes.
For professional advice on the rules of buying and investing in Bali, you can contact us.

Which locations in Bali have the highest returns?

There are many areas in Bali that can provide exceptional ROI.
Some of the most popular areas in Bali include:

Pererenan
Canggu
Berawa
Nyanyi
Seminyak
Uluwatu
Ubud

These are areas with popular attractions.
Beach clubs and restaurants tend to attract a large number of tourists, which is ideal for vacation rentals.
For advice on popular places to buy land in Bali, contact us.

Common terms and jargon

Some of the most common words and abbreviations you are likely to come across if you are looking to buy land in Bali.

Are: A popular unit of land measurement in Bali.
1 are = 100 sq.m.

Leasehold: A type of property ownership where you own the rights to use the land for a specified period of time.

Freehold: A freehold property whereby you own the rights to the land for an indefinite period of time.

Rp / IDR: Indonesian Rupiah – the currency used in Indonesia.
It is also common for prices to be quoted in USD (United States Dollar).

How much does land cost in Bali?

There are a number of factors that can affect the cost of land in Bali.
Pricing for leased land is usually calculated per “acre” (100 sq m) per year, with prices starting at around Rp 5,000,000 IDR (~$350 USD).

Some of the main considerations when pricing land in Bali:

  • Leasehold vs Freehold: As you would expect, buying freehold land is significantly more expensive as you own the rights to the land.
    Land for rent in Bali is much cheaper to buy.
    Leases typically last 25 – 30 years, with an option to extend the lease at the current market value of the land.
  • Land Location: As with anywhere in the world, the cost of land here is affected by location.
    Popular locations and waterfront properties tend to command the highest prices, while rural and quieter areas offer cheaper land deals.
  • Nearby attractions: Like the location of the land, the availability of amenities and attractions can increase the cost of buying land.
    Popular shops, restaurants, and beach clubs can affect the price.
  • Property Size: The bigger the lot, the more it will cost.

When investing in Bali, apart from the cost of the land, it is important to budget for construction, landscaping, furnishings, paperwork, and taxes.

How much land is needed for a villa?

The amount of land required will depend on the size of the cottage you want to build.
In most cases, the land required for development will be less than you think.

If you’re looking to invest in Bali property, you’ll want to maximize the use of your land for the highest return on investment.
On each of our projects, we indicate the recommended amount of land needed to build the respective villa.

Examples (minimum sq.m.):

1 Bedroom Villa – 100|200↑ sq.m.
2 Bedroom Villa – 200|300↑ sq.m.
3 Bedroom Villa – 250|400↑ sq.m.
4 Bedroom Villa – 250|500↑ sq.m.

All villas have a minimum living room, kitchen with dining room, swimming pool, landscaped yard, motorbike parking, and storage room, which is highly recommended when building an investment villa.

Car parking, gazebo, jacuzzi, barbecue, yoga shawl, etc., are good options to consider.
They significantly raise the rental price of the villa and compete quite successfully.

For advice on the right plot size for your new cottage, contact us.

What are the timelines for buying land in Bali?

The first step in buying land in Bali is finding the perfect plot for your budget and requirements.

Once suitable land is found, the process usually takes about 1 month, according to the following time frames:

    • Inspection and due diligence of property documents with notary and lawyer (2 weeks)
    • Contracts (1 week)
    • Money transfer (1 week)

Deadlines can vary for many reasons, but the above schedule is typical for most of our customers.

Let’s Invest Together