Did you know that Bali was once a troubled land? It is indeed difficult to accept this fact because of the current popularity of Bali as a tourist destination. At least 2.5 million people are visiting Bali each year. The pristine beaches, exotic cuisine, serene temples and the tranquillity in the air make Bali as popular as it is today in the tourism industry. Along with tourism, Bali is also selling like hot cakes in the real estate industry. It has all the quintessential requirements of a holiday home. It is nothing less than a dream to own a villa in this exotic land. However, proper planning is a must before buying a villa in Bali since it is in no way cheap or easy to acquire one.
Here are 5 things you need to know before you start looking for villas for sale in Bali:
- Location is prime
Location is of paramount significance while buying property in Bali. What you want is an excellent return on investment. Consider buying a villa in Seminyak rather than in Canggu. This will ensure that your returns are doubled and quicker. The northern region of Bali is also developing at a rapid pace which could mean higher returns in the future. Apart from investment purposes, if you buy a villa for your consumption, a place closer to the beach will keep offering the real feel of the ocean.
- Legal issues
If you are a foreigner, you cannot own land in Bali nor have freehold rights to a property. There is a maximum limit of a 25-year lease on the purchase of the property. Adding the name of an Indonesian nominee can quickly solve this issue. You could also form a PMA and acquire a license to build a villa from scratch.
- Invest near the sea
Bali is all about the surf and the sea. If you plan to buy villas in Bali for investment purposes, always consider the beach distance. Most tourists come looking for villas near the beach. While there are several villas miles away from the ocean, they will not give as decent returns as the ones that are closer to the beach.
- Market research
Do your homework and have a thorough research of market prices at hand. Foreigners tend to overpay while buying property in Asian countries. Prepare yourself mentally to pay a price that is repaid in rental tenure of 10-12 years. A decent return on property in Bali is around 10%. There are several advertisements and market agents that will try and dupe you into believing that you could have returns as high as 20%, but they are false hopes.
- Choose a professional real estate agent
This is by far the most critical part of buying a villa in Bali. If you are a foreigner, you might lose your mind over the different regulations in Bali. You need a professional, reputable and experienced real estate agent who will guide you through the process. He or she should be preferably a local with expertise and understanding of local property laws, skills of language and understanding of property transactions.