Bali is not only a travel destination, but it is also a good destination to invest in property and land. This can also be seen as the result of the Indonesian government’s effort to improve the investment climate in the country. Bali obviously holds the key to Indonesia’s economic power which includes travel and tourism sectors. In 2018 alone, there are around 15 million tourists who visited Bali. Year by year there are always new places to explore and new buildings to build. The progressive areas in Bali are growing and have massive returns, making it clear that Bali is highly potential to generate profits. However, there is some information you need to know before buying property in Bali.
Process of buying property in Bali
If you are interested in buying property in Bali, then you should first be familiar with the whole process. It is basically not very much different as if you are buying property in any other region or even other countries. First of all, you need to analyze and collect information about the market of property in Bali. Then, learn about the legal procedures including your rights and responsibilities. Not less important, you also need to decide the way you want to purchase the property: either directly to the owner or through agents and other investment companies. Last but not least, before making the deal you should discuss the payment scheme. Normally, large property agencies will offer you a lot of payment options. So, you can decide which one suits your financial situation the bests.
Regulation for non-Indonesian buyer
Since December 2015, Bali owns a new Government Regulation in which it is stated that foreigners who want to purchase domestic property must meet several conditions and complete the requirements. It is not that Bali has made things more complicated for foreigners, the regulation is conversely making it easier for foreigners to legally acquire land and property.
According to the regulation, a non-Indonesian investment can acquire the “Right to Use” (Hak Pakai) and “Right to Build” (Hak Guna Bangunan). Both types of ownership when buying property in Bali can be distinguished base on its duration and requirements. While the “Right of Use” gives you a maximum of 80 years duration with an initial term of 30 years and can be extendable first for 20 and further by 30 years, the “Right to Build” grants the property for 25 years with a renewal option up to a total tenure of up to 70 years.