How to choose liquid apartments in Bali?

How to choose liquid apartments in Bali?

Since 2010, foreign investors can buy real estate in Bali. However, there are certain rules that must be followed in order to safely purchase property on this island. Bali is a wonderful place to buy houses, villas, and apartments. In 2021, it was recognized as the best in the world by TripAdvisor. Currently, the island continues to attract expatriates and investors. Property prices here are constantly rising, limiting access to real estate for buyers with smaller budgets. However, you can still find affordable apartments or villas in quiet areas with stunning views or beachfront homes for sale. In this article, we will discuss the steps you need to take to purchase a highly liquid property.


Study local legislation

Before buying a house or apartment in Bali, it is essential to study the local legislation thoroughly. There are two main forms of property ownership: freehold and leasehold. According to Indonesian Law No. 5 of 1960, only citizens of the country have the right to free and lifelong ownership ("Hak Milik") of land or property.

Are foreigners allowed to buy property here? Yes, foreigners can legally and safely acquire property in Bali through a lease or right of use ("Hak Sewa" or "Hak Pakai") which can last from 25 to 30 years with the possibility of extension up to 80 years. Initially, you sign a lease for 25 or 30 years. At the end of the term, you have the option of renewing for another 20–30 years or opting out, after which the property rights revert to the original owner.

How to choose liquid apartments in Bali?

What factors should I consider before buying income-producing property?

When choosing a residence in Bali, it is important to consider several factors. We recommend that you evaluate the surrounding area in the following directions:

  • Transportation infrastructure. The size and quality of roads play a crucial role in travel comfort. Well-maintained and developed roads ensure easy movement around the island.
  • Drainage infrastructure. This is especially important during the rainy season. The quality of drainage channels and the area's ability to prevent flooding affect life in the area.
  • Protected green space and public access. The presence of nearby jungles, beaches, rice fields, and their accessibility for public use can make a location attractive for living or vacationing.
  • Commercial infrastructure. The presence of supermarkets, shopping centers, theaters, and small stores in the area provides maximum convenience for daily living.
  • Proximity to other expatriates and quality of communication with them. Many expats live in specific areas of the island. Interacting with them will undoubtedly have a positive effect and make it easier to adapt to the new environment.
  • Rental prices. Research average rental prices for housing on a daily, monthly and yearly basis, especially if you plan to rent out your property.
  • Proximity to tourist centers. Check the distance to popular locations such as Canggu, Seminyak, Uluwatu, Ubud, and the airport. Proximity to these is especially attractive to short-term tourists.
  • Tourism development trends and models. Analyze the tourism development trends and models in the area where you plan to buy property. Find out what improvements are planned for the area in the near future.

It's also worth studying the zoning of the house you want to buy and the surrounding area. Different zones may be designated for different types of uses: agricultural, residential, tourist or commercial.

Where is the best place to buy property?

Bali is known for its sandy beaches, vibrant coral reefs, and picturesque rice terraces. All the exciting locations are concentrated in these areas:

  • Canggu
  • Umalas
  • Nusa Dua
  • Sanur
  • Seminyak
  • Uluwatu
  • Jimbaran
  • Ubud

Canggu and Seminyak are popular areas with excellent surfing beaches, cozy cafes, beach clubs and entertainment. Ubud is a kind of "spiritual center" with a unique atmosphere and rich cultural heritage. Nusa Dua and Sanur are perfect for families and tourists looking for a peaceful, quiet vacation. Uluwatu with white sandy beaches and breathtaking cliff views is the ideal place for surf enthusiasts.

Your goal, whether it's living in Bali or renting out property for income, will determine which areas best suit your plans. For example, Canggu is excellent for short-term stays and attracting tourists, but the cost of living and property prices here are higher than in other areas, and it's a relatively busy location.

Tabanan and Ubud offer a lower cost of living and a quieter atmosphere that appeals to expatriates. However, these places do not attract many short-term tourists.

Steps to buying property in Bali

After selecting a potential property, the process of comprehensive due diligence begins. The goal is to ensure that the property meets your needs. Key steps in this process include:

  • Verify title: Review the primary documents that confirm ownership of the property to ensure that you can legally acquire and use the property. This may include title deeds, certificates of ownership, and government approvals.
  • Legal due diligence: It is recommended that you consult a lawyer and notary to review documents and records at banks and government institutions, such as the district government and the Indonesian National Land Agency (BPN). This will help ensure that all paperwork is in order and that there are no hidden problems. Ask your lawyer to draw up the sale contracts and the necessary conditions. It's important to make sure the contract is in your best interests and protects your rights in the transaction. It's also important to agree on terms for extending the contract, if necessary. Hire a notary to oversee the signing, registration and filing of documents with the appropriate government agencies. This professional will play a critical role in ensuring the accuracy and legality of the transaction, as well as the temporary transfer of title.
  • Technical inspection: Evaluate the home's foundation, water and electrical systems, and the condition of the walls to ensure they are in good condition and free of problems.
  • Finalize price and terms negotiations: After completing the initial inspections, you should finalize the price negotiations. Work out financing details, such as establishing payment schedules and discussing full payment terms (in the case of installment payments). If you are purchasing a completed property, you will need to make full payment. However, for off-plan projects, payments are usually made on an installment plan.
  • Registration and filing of documents: Make sure your notary has filed all the necessary documents and contracts with the government authorities to register the transaction and transfer title. This is a critical step in having the contract officially recognized and the title transferred to you.

By following these recommendations, you can be confident in the quality and legality of the property you're purchasing. It's advisable to work with experienced professionals, lawyers, and notaries to ensure compliance with all legal requirements and to guarantee the safety and legality of the purchase process.

What to avoid when buying property in Bali?

Avoid buying property through a "nominal owner" who would be listed on the documents instead of you. Even if an additional agreement is made, such a deal is illegal and can result in the loss of your investment. Also, do not transfer money without a notarized agreement.

Do not buy property without the necessary permits. Make sure the property has all the necessary permits (IMB or PBG) registered at the county level. Purchasing property without the proper permits may result in legal problems and other restrictions on the use of the property.

How to choose liquid apartments in Bali?

Let us help you buy a house in Bali

Our aggregator website offers a wide range of Bali real estate options. In our catalog, you'll find numerous listings for various types of properties, including villas, apartments, guesthouses, and hotels. You can choose the most suitable option according to your preferences and budget. The website provides convenient search and filter tools that allow you to customize the desired property parameters:

  • Number of rooms;
  • Property location;
  • Price and amenities to quickly find suitable options.

We only deal with reputable agencies and developers to ensure the high quality of the properties offered and the reliability of your future transaction. We wish you the best of luck with your Bali apartment purchase!

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