Common questions asked about real estate in Bali.

Bali remains one of the world's premier travel destinations, welcoming over 15,000 visitors daily. With an increasing number of individuals relocating to Bali for a higher quality of life, the real estate market is flourishing, displaying significant growth over the years. If you're seeking a long-term investment opportunity, now is an ideal time to consider investing in rental properties in Bali.

Learn more about why Bali is an ideal place for property investment Yolla Realty

In Bali, property ownership is usually either Leasehold or Freehold. Leasehold allows you to lease land from an Indonesian owner for a specific period, typically 25 to 30 years, with options for renewal. Freehold offers complete ownership, including land rights, but this option is only available to Indonesian citizens. Foreign investors are restricted from owning Freehold land directly and must use a foreign investment company, known as PT PMA, to hold Freehold properties legally. This structure ensures compliance with Indonesian laws while providing a viable pathway for foreign investment.

For a step-by-step guide on buying property as a foreigner, visit our blog on Buying Property in Bali as a Foreigner in 5 Easy Steps.

Land zoning in Bali specifies the permitted uses for land in different areas, shaping what can be developed on a property. Zoning regulations are essential to understand when purchasing land or villas, as they guide whether your intended development aligns with local laws. For instance, areas classified under the 'Pink Zone' are designated for commercial and tourism-related activities, allowing the construction of hotels, villas, restaurants, and other tourism-focused establishments. This knowledge enables buyers to make informed decisions and align their investment goals with local regulations.

For more on zoning and investment strategies in Bali’s key areas, explore our guide to investment hotspots and property regulations.

Yes, purchasing a property in Bali remotely is completely feasible with our support. We offer virtual property tours, answer all your inquiries, and handle each step of the purchase process on your behalf. Using a power of attorney, our team can legally sign property ownership documents for you, making remote purchases straightforward and efficient.

To learn more about remote buying options and maximizing your investment, explore our guide on passive income through Bali villa rentals and key steps for investing in Bali.

Uluwatu stands as the most sought-after location in Bali presently. Investing in a villa in this area can yield a minimum occupancy rate of 80% annually, translating to a promising ROI ranging between 13-18%.

To capitalize on this potential, it's crucial to enlist the services of a professional management company. Yolla Hospitality offers comprehensive solutions, including marketing strategies and end-to-end property management, ensuring optimal performance and returns.

For an in-depth look at why Uluwatu is ideal for villa investment, click ​here!

Calculating costs and ROI is straightforward. Let's take a 2-bedroom villa priced at $300,000 as an example, with estimated average operational costs (including management commission) of $2,200 per month.

Assuming an 80% occupancy rate, the annual net income to the owner would be $40,000. This results in an ROI of 13%, with a payback period of 7.5 years.

Learn more about calculating ROI and real examples here.

1. Lower Initial Costs: Off-plan properties often come with lower initial purchase prices compared to completed properties, allowing for potential cost savings.
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2. Potential for Capital Appreciation: As the property is typically purchased at today's prices but completed in the future, investors may benefit from potential capital appreciation as property values increase over time.
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3. Customization Opportunities: Buyers often have the chance to customize certain aspects of the property, such as finishes and layouts, to suit their preferences.
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4. Flexible Payment Plans: Developers may offer flexible payment plans, such as staggered payments over the construction period, making it easier for buyers to manage their finances.
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5. Early Access to Prime Locations: Off-plan properties are often located in upcoming or prime locations, providing buyers with early access to areas poised for growth and development.
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6. Potential for Higher Returns: Upon completion, off-plan properties may command higher resale or rental values, potentially leading to higher returns on investment compared to properties purchased after completion.

Payment plans vary depending on the owner and property type. For off-plan villas, the payment plan is often more flexible, allowing for installment payments that can sometimes be negotiated. However, for most property transactions in Bali, upfront payment of the entire purchase amount is typically required.

When undertaking construction projects in Bali, two crucial permits must be obtained:
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- PBG License (Persetujuan Bangunan Gedung): This is the initial building permit acquired before commencing construction. It signifies official approval for the proposed building project.

- SLF Building Permit (Surat Izin Lembaga Konstruksi): This permit is secured during the construction phase and serves to monitor and verify compliance with approved plans and specifications. It ensures that construction proceeds according to legal and quality standards.

Both the PBG License and SLF Building Permit are indispensable documents, guaranteeing the legality and quality of construction endeavors in Bali.

One notable fee to consider is the 1% notary tax, which the buyer is responsible for paying. The Notary will issue a separate invoice to the buyer, distinct from the purchase price of the villa.