Investments and Dreams: Buying a Villa in Bali for Living and Renting

Buying a villa abroad isn’t just an investment; it’s a step toward your dream. Picture this: your home in a tropical paradise, where every morning greets you with ocean views or lush green rice terraces. The gentle rustle of palm leaves overhead, the cool touch of the pool, and leisurely evening walks along the shore—this could all become part of your daily life.

But along with dreams come questions. How do you find that perfect spot to live in harmony with nature, enjoy solitude, or, on the flip side, be in the heart of the action? Should you go for a spacious villa or cozy apartments? And most importantly, how do you navigate the legal aspects to ensure your purchase is safe and secure? Finding the right answers will not only bring you closer to your dream home in Bali, but will also help make that dream a reality.

Legal Aspects of Buying Property in Bali 

The first thing to know is that foreigners aren’t allowed to own property in Bali. Surprise! But don’t worry, it’s not as bad as it sounds—ownership rights in Indonesia are just layered with complexity.

Full ownership is called freehold (Hak Milik), and it’s available only to citizens. As a foreigner, you can only gain the right to manage and use property through various long-term lease schemes, such as Hak Sewa, known as leasehold, and Hak Pakai, known as usage rights. There are also more specific rights, like the right to build (Hak Guna Bangunan) and the right to cultivate land (Hak Guna Usaha).

All these terms might make your head spin, but if you’re serious about buying a villa in Bali, you’ll need to get familiar with them. We’ve prepared a separate guide on Bali’s property ownership rights for that very reason—take a look. In this article, though, we’ll focus on other aspects.

Purpose of Buying Property in Bali

Many people buy property in Bali primarily for vacations. A private villa with a pool and ocean views—sounds like a dream, right? While relaxation is important, it’s not the only part of your life. A well-thought-out purchase can be more than just a vacation spot—it can also be an income-generating asset.

Imagine your villa in Bali as not only your personal oasis under the starry skies but also a property that works for you. When you’re not sipping morning coffee on the terrace, gazing at the ocean, or soaking in the atmosphere of local temples, your property should be making you money. Fortunately, real estate in Bali is in high demand among tourists.

Bali attracts a constant stream of visitors, and many of them prefer renting private villas, apartments, or townhouses. If your property has a prime location, smart design, and solid infrastructure, it can provide you with a steady income. That means you can not only unwind in Bali, but do so in a way that benefits both your soul and your wallet.

Choosing the Right Area to Live

Your choice of area depends entirely on your lifestyle and personal preferences. If you enjoy a dynamic, active life filled with entertainment, Kuta or Canggu might be your scene. These areas are packed with cafés, bars, nightclubs, and surf schools. They’re popular among the young crowd and expats who thrive on the "always on the move" lifestyle, where your biggest challenge might be deciding, “Where’s the best spot for a sunset cocktail?”

If you prefer a quieter atmosphere but still want access to good infrastructure, Seminyak could be your sweet spot. It’s a neighborhood where luxury villas sit next to trendy boutiques, fine dining restaurants, and beaches, making it perfect for families or anyone who values a balance between vibrant and laid-back living.

But if you’re the kind of person who dreams of escaping the hustle and melting into nature’s peace, then Ubud is calling your name. Surrounded by rice terraces and jungles, it feels like it was made for meditation, inspiration, and deep thoughts about the meaning of life (or at least figuring out how to wake up early for yoga). Here, your soul can rest, and the view from your window will make everyday worries disappear. In this article, we’ve covered the best areas in Bali.

Incredible Tourist Spots in Bali

Bali is full of awe-inspiring places. One of the most famous is Uluwatu Temple, perched on a cliff high above the ocean. It feels like it was made for sunsets, where the sun slowly dips into the sea, painting the sky with fiery colors. Here, you can also witness traditional Kecak dances, adding a mystical vibe to the experience.

The island has no shortage of other stunning temple landmarks. Among them are Besakih Temple, Ulun Danu Temple, Beratan Bedugul Temple, and Tanah Lot Temple, which quite literally stands on the water. Its unique location makes it one of the most photographed spots on the island, especially at sunset when the temple turns into a silhouette against the fading sun.

Another must-see location is the Tegallalang Rice Terraces. These green steps, cascading down the hillsides, not only captivate with their natural beauty but are also part of Bali’s cultural heritage. You can walk along the narrow paths between the terraces, soak in the views of endless rice fields, and find a serenity that's hard to come by in big cities.

No less inspiring is the Sacred Monkey Forest in Ubud, where hundreds of mischievous (and sometimes not-so-friendly) macaques live among ancient trees and temples. It’s a true gem for anyone looking to immerse themselves in Bali’s natural and spiritual atmosphere.

You won’t forget Tegunungan Waterfall either—one of the most picturesque spots in Bali. The power of its cascading water seems to energize anyone standing near it. Surrounded by dense jungle, the waterfall creates a sense of seclusion where you can lose yourself in the pure, untouched beauty of nature.

And if you crave even more breathtaking experiences, head to Mount Batur. Climbing to its summit at dawn will be one of the most unforgettable moments of your life. As the sun rises above the horizon, a majestic panorama of the entire island will unfold before your eyes.

Near these magical places, many people dream of finding their perfect villa—not just a private retreat, but also a property that attracts tourists eager to rent it for themselves.

How to Buy Property in Bali?

Buying a villa can either be a DIY project or something you delegate to professionals, depending on your preferences, time, and experience.

Buying on Your Own

Purchasing property on your own suits those who are already familiar with the market and its legal complexities. This route demands your full involvement—from finding the property and ensuring the deal is legally sound to completing the paperwork. This is especially crucial for foreign buyers, as there are restrictions on land ownership. You’ll need to understand the ins and outs of leasehold arrangements or even setting up a company (PT PMA) for commercial purposes. While this path is complex and time-consuming, it offers a deep understanding of the process and full control at every stage. This guide will help you get started:

Delegating the Process to Professionals

If you want to save time and avoid the complications of buying property in Bali, it’s best to leave the process to professionals. Realtors, legal consultants, and property specialists can handle everything—from selecting a property to securing ownership rights. They’ll help you find the best option, verify documents, and guide the transaction from start to finish. This approach is particularly convenient for first-time foreign buyers or anyone who doesn’t want to get bogged down in legal details.

Buying Property Online  

Thanks to modern technologies, buying property in Bali online has become a reality. You can browse and choose suitable properties through specialized websites and platforms that feature photos, videos, and detailed descriptions. The main steps—choosing a property, signing a contract, and transferring funds—can all be done remotely. However, it’s crucial to ensure the seller’s reputation and documentation are thoroughly vetted, especially if you’re not planning to visit the property in person. Many investors prefer to hire lawyers and realtors to conduct legal checks, ensure the deal is clean, and help with the paperwork.

At What Stage Should You Buy a Villa?

When buying property in Bali, it’s important to decide at what stage to make the deal: should you go for a ready-to-move-in villa, invest in a project under construction, or lease land and build your own? Each option comes with its own advantages and nuances.

Buying a Ready Villa

A ready-made villa is undoubtedly the quickest and most convenient option. You can move in right away or start renting it out, earning income from day one. These properties have stood the test of time, often come with well-maintained gardens and pools, and you know exactly what you’re getting. Additionally, legal matters and utilities are usually already sorted out. However, the price can be higher than for a project under construction or land, and your design options are limited.

Buying a Property Under Construction

Investing in a property that’s still under construction can strike a great balance between cost and customization. Developers often offer better terms and flexible payment plans during the building phase. Plus, you can make adjustments to the design, tailoring the home to fit your needs. The downside? You’ll have to wait for the construction to be completed, and there’s always the risk of delays. Find out more here:

Leasing Land and Building Yourself

Leasing land and building your villa is the most flexible yet most complex route. This option gives you full freedom in choosing the location, design, and materials for your future home. You can create a truly unique villa that perfectly matches your taste and lifestyle. However, you’ll face a series of challenges: navigating local building regulations, permits, and bureaucracy, finding trustworthy contractors, and overseeing every stage of the construction process. While this option can be more cost-effective in the long run, it requires significant time and resources to bring your vision to life.

Bali Real Estate Market: Prices, Trends, and Opportunities

Property prices in Bali vary by area and housing type. In popular spots like Seminyak, Canggu, and Uluwatu, the cost of ready villas ranges from $300,000 to $2 million. In quieter areas such as Ubud and Tabanan, prices are lower, typically between $150,000 and $500,000. For those looking to build a home, construction costs range from $500 to $1,200 per square meter, depending on the level of finish and material quality. Land prices in tourist areas reach $100,000–$300,000 per are (1000 sqm), while in more remote locations, they start from $30,000.

Bali’s year-round favorable weather eliminates the seasonal dips that affect other tourist destinations, ensuring high occupancy rates for properties. While 70% occupancy is considered good in other countries, in Bali, it’s viewed as low. Most properties, including luxury villas, boast over 70% occupancy, while affordable apartments achieve more than 90%. Moreover, Bali has the highest average daily rate (ADR) for five-star hotels on Southeast Asia’s oceanfront, reaching $600 per night.

The quality of construction in Bali largely depends on the contractors and materials used, so it’s important to choose a reliable builder. Villas are often constructed with concrete and natural stone, materials that stand up well to the island’s climate. Using local resources not only reduces costs but also increases the villa’s durability in Bali’s tropical conditions.

In recent years, eco-friendly construction has been trending in Bali. Entire eco-communities, like Nuanu, are sparking a rise in demand for sustainable living. If you're considering a villa in Bali, it’s wise to factor in eco-standards to stay in line with market trends.

The real estate market in Bali continues to grow, driven by steady demand for rentals from tourists and remote workers. Demand far exceeds supply: in 2023, the demand for residential real estate reached over 300,000 square meters per year, while supply was limited to 170,000 square meters. Popular areas like Canggu and Uluwatu show the best growth trends.

An Alternative Way to Invest in a Villa in Bali

If you’re not ready to buy an entire villa but still want rental income, innovative solutions like tokenization are available. Tokenization allows investors to purchase shares of real estate with little money, making it especially convenient for newcomers to the market.

With the Binaryx platform, you can buy a fraction of a villa and earn income from its rental. This is a great way to invest in real estate without committing to the full purchase price, while still receiving your share of the profits. This approach makes Bali’s real estate market more accessible to investors with varying financial capabilities.

Binaryx sets up an LLC for each property, raises funds through the sale of real estate tokens, and ensures efficient management of the property. These real estate tokens provide you with a legal share in the LLC that owns the property, allowing you to automatically receive rental income. For example, with an investment of $15,000, you can diversify by spreading your funds across multiple properties or focusing on just one. And with Binaryx, you can start investing in rental properties with as little as $50.

Tips: Things to Avoid When Buying Property in Bali

These tips will help you minimize risks and make your property purchase in Bali smarter and more profitable.

• Unverified Developers: Make sure the developer has a solid reputation and experience in Bali. Check reviews, visit their previous projects, and assess the quality of their construction.
• Ignoring Legal Aspects: Foreigners cannot own land in Bali directly—there are specific legal schemes (such as land leases). Learn the local laws and consult with a local lawyer to avoid any issues.
• Skipping Land Verification: Before buying a plot, ensure the land has all the necessary documents, there are no ownership disputes, and it’s suitable for construction (especially in areas prone to flooding or earthquakes).
• Unrealistic Rental Expectations: Don’t expect instant high returns from renting out your property. Evaluate the market and the villa’s potential occupancy based on its location, level of service, and competition.
• Hidden Costs: Don’t overlook additional expenses—taxes, utilities, villa maintenance, repairs, and rental management fees. These can significantly increase your overall costs.
• Underestimating Climate Challenges: Don’t ignore the importance of moisture protection, especially if your project involves wooden elements. Focus on waterproofing and using durable materials suited for Bali’s tropical climate.
• Lack of a Long-Term Strategy: Think ahead—what will you do with the property in a few years? Sell, rent, or keep it for personal use? Having a strategy will help you avoid unexpected issues down the road.

Conclusion

Buying property in Bali isn’t just about owning a home on one of the world’s most beautiful islands—it’s also a smart investment with the potential for steady income. However, it’s crucial to thoroughly research the market, choose the right area and type of property, and understand the legal and financial nuances before making a decision. Modern technologies and investment platforms have made this process easier, making it accessible even with minimal investments. With platforms like Binaryx, you can easily enter the real estate market, invest with lower risks, and maximize returns by purchasing shares in properties.

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