The Bali property market has grown significantly over recent years. One of the main reasons for this is because there has been a huge boost in tourism, encouraging more people to visit the country. Often, properties here have state-of-the-art equipment and are highly modern, and this makes them very interesting for foreign investors. Gordon Tang provides key advice for those looking at purchasing property in Bali.
Gordon Tang on Investing in Bali
The properties in Bali are nothing short of beautiful. They can be a wonderful place to retire while also being a potential source of income if they are rented out as holiday homes. However, foreigners who wish to buy in Bali have to meet a number of rules and regulations. One of those is that they must understand the ownership structures. Indonesia’s property market is now quite open to investors from other countries. In the past, there were actually lost that stopped foreigner from owning any property anywhere in Indonesia. This started in 1945, when Indonesia gained independence after lengthy colonial rule when the country wanted to avoid any foreign involvement.
That said, although it is not possible to purchase as a foreign investor, it is still quite complex. There are a number of feasible options, including:
- Hak Sewa, which is leasehold.
- Hak Pakai, which is right to use.
Neither is an option to own, but both are equally good. At least hot, for instance, is often for an 80 year period. Furthermore, the Indonesian government wants to see that you intend to live, work, or invest in a country or they will not give you permission to buy.
If the above sounds fair and something that you are happy with, then you need to find a professional real estate agent in Bali who understands and knows the local laws. It is best to hire a local for this so that you do not end up having to deal with misunderstandings because of language complexities and more. Furthermore, Indonesia has a highly complex legal system so you do also have to find a local lawyer.
Because the local property market in Bali, and infect in all of Indonesia, has been so much, there are certain areas in which land and property prices have soared. Those include Kuta, Seminyak, and Petitenget. Hence, if you hope to invest and strike a cheap deal that will have a high return, it is likely that you will be better off looking in different parts of Indonesia. Good options include South KUta, Canggu, and Tabanan. Not just that, there are lots of tiny islands around Bali on which you could also make investments. Because you will be investing in a foreign country, it is very important that you do your research and do not make any hasty judgements or decisions. Make sure you also take the opportunity to actually visit the area, as it is likely that you will fall head over heels in love with it.