On one of the most idyllic islands in the world, there is never-ending warm weather, an abundance of places to eat and drink, and perhaps nothing beats ending the day with a stroll along the beach as the sun sets over the Indian Ocean in a kaleidoscopic fresco of colors. Moreover, never again have to make a bed or wash a dish. Also, the infinity pool and private spa inside the villa. If you have the capital, you can buy real estate in popular areas of Bali like the Seminyak, and build your dream villa.
Before that, however, you have to understand the complexities of buying real estate in Bali Seminyak as a foreigner. You have to understand everything beyond looking for a house and sealing the deal. In some cases, tourists have paid tens of thousands of dollars in advance only to find out they were duped and the villa was already occupied on the day they tried to move in.
So here are some most important things you need to know if you plan to buy real estate in Bali.
Be Aware of the New Law that Allows Foreigner Property Ownership in Indonesia
At least when it comes to purchasing residential property, it’s simpler than ever to be a foreigner in Indonesia.
International home buyers had been prevented from purchasing properties throughout the archipelago for years by onerous regulations. All of that changed in 2015 when President Joko “Jokowi” Widodo, who was reelected this year for a second five-year term, started putting forth measures that reduced the requirements for obtaining permits for foreign enterprises and houses. A handbook for foreigners looking to purchase real estate in Indonesia was produced in November 2018 by the Indonesia Real Estate Association (REI) in coordination with the government.
The Right of Foreigners
The Government Regulation No. 103 of 2015 on Residential Ownership for Foreigners was signed by the Jokowi administration a few years ago, effectively permitting foreigners with Indonesian domiciles to purchase landed homes for up to 80 years. According to the legislation, foreigners are eligible to possess landed homes under the Right to Use (hak pakai) title, which is originally given for 30 years and then extendable for another 20. After the extended period has passed, hak pakai may be prolonged for an additional 30 years.
There is one restriction: foreigners are only permitted to purchase one land parcel that is no more than 2,000 square meters.
Learn the Local Pricing
The area’s most recent pricing patterns should be studied first. For instance, a prospective investor should check to see if home prices are rising more quickly in one area than in others. Next, see if the cost of a home is higher than in other nearby towns. This will provide an idea of where the biggest demand is. Studying these trends will also help you develop an understanding of what prices are “fair” for various properties and what prices are excessive over time. This information can be extremely helpful for people who want to purchase homes for the least amount of money.
Cannot Buy Real Estate in Bali Seminyak Due to the High Price? Take A Look to the Outskirt
Indeed, location is everything when you buy property, and Seminyak is one of the best locations for real estate in Bali. However, due to its popularity, the price of a property in this area has increased dramatically from just 5 years ago.
You might inquire about the nearby areas in Bali, like Pererenan, Tabanan, or Karangasem, and see if there is a railroad or bus company that will be increasing service in the region. Learn more about what is anticipated in the outskirt area. This data is also available from the town hall or planning division in your area.
Take A Look at Apartments for Unlimited Purchases
The number of residential units that foreigners in Indonesia may purchase is still unregulated by the government. As long as they are constructed on land with a Right to Use title or those with the Right to Use converted from strata title, foreigners are permitted to purchase numerous units.