balirealty 3rd October 2022 bali property no responses

Buying land and building in Bali has long been the preserve of wealthy international investors.

However, with the digital nomad economy booming on the island of the Gods and murmurings of a 5-year digital nomad visa, Bali has never been a more attractive spot to invest in your Bali dream home or investment villa.

Rather than paying for a developer’s profits, why not choose to build your own custom villa? Established in 2009, Bali Realty is a market leader in the buying land, building, and selling process. We work with highly trusted developers and contractors to ensure your journey from that initial call to having the keys to your dream villa is seamless.

Owning your Bali villa is a dream come true and can generate a nice little side income when you rent it out.

Purchasing land

When it comes to buying land in Bali, Indonesia, the picture can be a little complicated without the right trusted advice. Foreign investors cannot directly purchase rights to freehold land but can instead purchase long-term leases, known as Hak Sewa, with the most common durations of 25 or 30 years long with future options to extend the lease. Under certain circumstances, and after setting up a foreign-owned company established in Indonesia, known as a PT.PMA company, it is possible to purchase freehold land, under a Hak Pakai or Hak Guna Bangunan (HGB) title in Bali, but there are terms and conditions that must be first met. At Bali Realty, we have over a decade of experience as an intermediary in this area and can advise on your best options. Currently, we are seeing prices for land continue to rise, with popular areas like Seminyak, Berawa, and Canggu on the up and up. In recent years, land in the Bukit (Uluwatu, Bingin, Pandawa) has steadily been rising too, as supply struggles to keep up with demand for new homes on the southern coast. Further north, Pererenan land prices have shot up in the last several years and the demand for land continues to hug the eastern shoreline as far up as Cemagi, Seseh, and beyond. Purchasing land further North than many of the current amenities, even if not for an immediate build, is a worthwhile investment for the future.

Also read: Long Term Rental Villas vs Leasehold Villas in Bali: all you need to know

Design Process

From top-quality marbles and granites to custom-built furniture, Bali offers a plethora of luxuries for high-end villas at a fraction of the cost of Western prices. We work with internationally renowned architects and designers to help curate a bespoke design for you.

Choosing your builders

Having lived in Bali for over ten years and built it here himself, our founder Nathan Ryan is well-placed to guide clients through the entire undertaking. He has worked on projects from $250,000 single villas all the way up to multi-million-dollar development projects. He always recommends using Western-owned and run contracting companies for your building work. The companies we often work with have operated on the island for over a decade. When it comes to choosing a builder, a useful analogy is searching for a nanny for your kids. Who would you trust with looking after your child? Would you do your due diligence? There are similarities to building a home. You want safety and comfort when bringing an idea to life. When it comes to builders, we know who you can trust.

Building

As with any structure, the devil is in the detail. Laying strong, waterproof foundations is important anywhere, but Bali’s rainy season means that if you don’t do it properly, you’ll be found out before the year is out. We suggest working with contractors with a proven track record. This means requesting to see examples of villas not just finished in the last year, but that have been standing the test of tropical rains for a while. We work with companies providing western standard engineering, foundations, waterproofing, and sealing. If you are based off the island, you will be able to see weekly updates, progress reports, and videos of your new home or villa taking shape. The entire journey from the initial land purchase to receiving the keys to your villa usually takes between 9-14 months.

Renting

So now you have your dream home. What to do when you are away? Bali’s reliable tourist season offers a great opportunity for villa owners to cash in on the influx of tourists during the high season. For those looking to invest in property with a view to renting, we would expect to see returns of between 8-12% per annum. For extremely high-spec villas, the tourist season offers a great chance for holiday villa rental which can be extremely lucrative when managed properly. Our expert Holiday Villa Management Team can help to manage all aspects of this, leaving you free to enjoy your travels or second home.

 

Ready to start your Bali land search? Get in contact with Nathan or one of his friendly and experienced sales agents, in the comfort that we know how to help walk you through the process from A to Z.
About the author

Bali Realty Nathan RyanNathan Ryan is one of the best real estate agents in Bali and will be able to help you secure your wonderful piece of paradise in Canggu. He’s got a wealth of experience and knows everything there is to know about buying and selling real estate in Bali.