We should underline that purchasing a property in an exotic destination represents a dream come true for an overwhelming majority of individuals who managed to put some funds aside. Naturally, even those with shallower pockets often fantasize about acquiring a piece of heaven to call their own. Unquestionably, the concept is feasible, but it still differs from the traditional property buying and selling practice one might expect. Thus, we kindly invite you to read through the following lines and learn about possible pitfalls of buying property in Bali in 2024 you would want to avoid. Do not let them discourage you, moreover, analyze them thoroughly and use the knowledge you obtain to get your hands on a one-of-a-kind asset easily.
1. Natives Vs Foreign Investors
To make a long story short, a foreigner has no right to purchase a land piece in Bali according to state law. Thus, if you wondered if purchasing a property, the traditional way is feasible, the answer is negative. That is unless you obtain Indonesian citizenship.
Still, Indonesian law does not prohibit foreign entities from leasing land for a long period, which is not an option you would want to neglect if you want to ensure you get what you want. We shall discuss the topic later in the text since the concept is crafted from peculiar catches you would want to master before investing in such a venture.
2. Cooperation with the Locals
We have already mentioned that only Indonesians can rightfully own an asset in Bali, so the potential solution to the issue might be to pay the individual with citizenship to purchase the property on your behalf, right?
Unfortunately, not only that the aforementioned strategy is considered illegal, but it could also result in you losing everything you invest due to numerous predictable reasons. Firstly, there is no guarantee the individual you hire will respect the terms and conditions of your potential agreement since they would be the only legal owner of the property in the eyes of law.
Secondly, scams related to Bali property ownership are constantly happening due to naïve investors who rush before the storm and often go for the most alluring offers before doing their homework and assessing the risk. In a nutshell, we recommend you not to consider this form of acquiring land in Bali, because the chances you will get what you pay for are equal to zero.
Not only is Bali considered one of the most beautiful Indonesian provinces but it is also a globally popular destination riding on a trend of investment potentials going nowhere but sky-high. It represents a symbiosis between unique sights of untouched nature and state-of-the-art architectural designs envisaged to meet the wants and needs of a cosmopolitan.
If this is not enough to make you wonder why would not you invest in the Bali property, we suggest you check this for additional reassurance.
Still, we must urge you to analyze the peculiar property that catches your eye in deep before agreeing on the terms and conditions of a potential contract. Namely, any plot of land located in Bali belongs to a particular zone. In a nutshell, if the asset belongs to a green zone, there is no chance you will get the necessary permission to build on it, no matter what.
Even though you might be amazed by the sight and have the perfect idea of what you might do with the potential of a green zone place, construction is out of the question. Therefore, we urge you to obtain information about a plot that you intend on purchasing before acquiring an asset you would not be able to modify.
There are a few details considering leasing Bali property we would like to discuss. Firstly, you should know that the initial lease cannot last longer than 25 years while it can legally be extended after the legal registration. In a nutshell, the number of years you have legal right to lease maxes at the digit of 75.
Now, the chances you would want to prolong your lease are major, so we should warn you that you must make sure to leave nothing to a case when signing a contract with a lessor. In other words, the agreement is supposed to grant the right to extend the period after the previously agreed period expires.
If you fail to mention your demands in a legally binding deal, the chances you will manage to re-lease a property under favorable conditions are minor. Therefore, we recommend you leave the drawing up of a contract to a professional specializing in Bali real estate.
Since the practice of leasing Bali property is not uncommonly practiced by foreign entities, numerous companies base their operations on handling the legal issues on their behalf. Your job would imply either locating an asset and inquiring about its status at a specific legal organization based in Bali or even asking them to do the hard work for you and feed you with contemporary offers that suit your budget.
What is vital is to work only with a mediator you can trust, especially if you operate from abroad. Thus, we suggest you focus on consulting former clients’ experiences and reviews you can find online. Also, we suggest you personally discuss the nature of your potential investment with a representative you consider competent, both to learn more about their credentials and to figure out if they are to be trusted. Let’s face it, one does not spend a small fortune on a property on a daily basis, so you might as well give yourself up on handling everything goes safely.
Hopefully, the aforementioned pieces of information and suggestions will help you get your hands on a property in Bali you have been fantasizing about. We urge you not to rush into making decisions until you are 100% sure the venture is legally backed up by official contracts and fully understood by signing parties. Even though you cannot own land as a foreigner in Indonesia, it does not mean that you cannot enjoy it for the rest of your life, as well as to ensure your family members have the right to continue the practice afterward.