8 Great Tips on Buying a Perfect Property and Real Estate in Bali
Bali is a leading tourist destination in Indonesia and a popular city among foreigners. Every year, more than millions people are coming to Bali, both domestic and international tourists which bring a huge impact on Bali’s tourism. Most of Bali’s income is coming from the tourism sector, which is strongly affecting the economy and business field in Bali, including the property and real estate.
As you might have already known, Bali is an island with natural scenery that is often called ‘paradise’ because of the lovely ambience that Bali has. Bali is one of the world’s top destinations for holiday and always became a place with numerous visitors throughout the year. With this fact of Bali’s visitors, Bali has transformed into a promising tourism sector.
Following the number of tourists in Bali, the need for accommodation is also rising, and this is considered as one of the great ways for some investment in Bali. There are many types of Bali property, real estate, and lands that you can invest in, such as villas, resorts, or any type of accommodation.
Bali Property and Real Estate: An Outlook
Bali has been seen as a great choice for property investment as the prices keep growing in the past decade, this is one of the effects of increased Bali’s tourism. As the times go, Bali’s property and real estate are expected to perform well, this requires Bali’s tourism to become more attractive for visitors.
In order to develop Bali property and real estate, the residential area in Bali also needs some changes and creates a better environment. With the balanced lifestyle and far from megacities ambience that Bali’s offer, it will bring a more equal distribution of development to the island.
Bali property and real estate has been growing continuously caused by the heavy demand and high volume of transactions over the past few years. Bali property prices increase by an average of 20% in most areas, and up to about 40% in popular areas such as Seminyak and Canggu.
Types of Property You Can Buy in Bali
If you are interested in Bali property and real estate, it is better for you to know deeper first before doing some investment or purchasing. Here are some explanations about types of property in Bali that are worth enough for you to buy.
Villas are one of the most popular accommodation types for tourists in Bali. Generally a villa is a fully furnished building, which offers a wide range of facilities for guests. Easy access and affordable prices are the reasons why villas are in high demand among tourists, hence it becoming one of the most promising types of property in Bali.
You can buy various types of villas, such as beachfront villas or peaceful villas in quiet areas. Purchasing villas as your property in Bali, can be a great way as you can use it for private use or renting it for tourists.
The second type of property you can buy in Bali is an Apartment. The apartment is a great choice if you think villas can be too much to buy. The apartment is less costly than villas, where it is often located close to the city and more sophisticated. Choosing an apartment as your property can also be utilized for your private use or for rent.
Read also about Best Coliving Space in Bali
Generally, kost is a room renting in Indonesia. Most of kost are located in the main house or building that was intentionally built for it. But there’s also a kost that is a room under a family-owned house, where you’ll live with the host family.
Purchasing a kost as your property in Bali means that you need to purchase or build a house, then rent each room for tourists. This kind of accommodation can be applied for short and long-term rental.
Apart from purchasing a building that can be set up as accommodation in Bali, other options of Bali property to buy is a land. Investing in land property is a promising business due to its high long-term profit. By purchasing land, you can also build your own accommodation from the scratch and make it as your taste.
How Much are Property Price in Bali?
Prices for Bali property and real estate have mostly changed due to several reasons. Based on researches we gathered, prices of Bali property and real estate are also different based on types of the property.
For example, building property usually costs roughly an estimate depending on the standard of the building and the size of the property. Start at around 4.5 million Rupiah per square metre for a basic standard of building. The highest standard of building is probably around 12 to 14 million Rupiah per square metre, at this price you would expect to have the highest quality materials.
The increases of Bali property’s price are mostly due to people’s willingness to pay, a situation of people selling property to push up the prices and a situation of dealing with people from overseas who have little understanding of the real estate market here in Bali.
As for land, the price has also increased rapidly, sometimes caused by people willingness to. Other aspects that affect land’s prices are the location of the land. For example, in some outlying village areas land is sold for around Rp100 million Rupiah for 100 square metres. Sanur is around 600 million Rupiah, and Canggu is around 600 to 800 million Rupiah.
8 Tips on Buying Property and Real Estate in Bali
Bali property and real estate is one of the ways of investment, and you need to make it right. Before purchasing Bali property, take a look at these tips on how to buy property in Bali.
1. Choose a Location
Location is an important factor about Bali property and real estate, therefore choosing a location is a starter way you need to do before purchasing any property. A tip for choosing a property location is to try to put yourself in someone’s shoes, which means that you have to choose the one that you like, and your future renters likes as well. Popular districts like Seminyak or Canggu could be a great option.
2. Familiarize Yourself with Property Ownership Structures in Bali
One of the ways that you can familiarize yourself with property ownership in Bali is to talk to the expert, in this case a notary who is familiar with property laws. You can ask for an overview of legal options for the property you want.
3. Budget Your Property
Planning a budget for your Bali property needs the right counts about construction, finishing, and furniture, as well as service fee if you happen to have any plan on renting out your property. Other things to remember before renting your property, add some budget for a villa manager, staff, and even a photographer.
4. Find a Good Property Agent
Finding a good property agent can be done by meeting agents with legitimate companies that have an office and are recognised by the market. This is important as agents will guide you through the whole process of buying Bali property. Some of the work of agents is securing access to your land, obtaining building permits, recommending trusted notaries and contracting with the owner of the property.
5. Inspect the Property
Several things that you need to take note while inspecting the property are the physical condition of the building, access to fresh water, landscape of the building, geological structure, electrical systems, drainage, security issues, and existing management contracts. As for land, road access and potential site work are also important to consider.
6. Negotiate an Offer
Negotiating is one of the ways for you to get the best price of Bali property. You need to talk about the amount of deposit you will pay, to show them you are serious about buying the property. In this case, your agents will act as an intermediary in negotiations between buyers and sellers, and make sure for a smooth transaction.
7. Find a Good Notary
A good notary will make the whole process easier. As for the cost, notaries are usually charged between 1% and 2.5% of the sale price, typically depending on the complexity of the acquisition and the scope of services requested. Notary will ensure that the property is accessible, free of any outstanding mortgage and that the property has a land certificate, building license and proof of paid taxes.
8. Do Your Due Diligence
Due diligence is needed before purchasing a property. One of the ways to do your due diligence is checking the history and current status of the land certificate, ensuring there are no encumbrances on the land, checking environmental restrictions, checking the construction permit, ensuring unrestricted and legal access to the property, and checking the property’s tax records.
That would be it! All you need to know about Bali property and real estate. Make sure to follow these tips and you’re ready to buy your own asset in Bali!
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