First of all, the investor should understand that Bali is a rather small island, which, however, has not yet been fully built up. Even the busiest areas (such as Canggu) continue to be built, and investors are returning their investment by 20-30% per year.
About what real estate in Bali is better to invest in, we'll talk a little lower. In the meantime, let's talk about the legal intricacies when buying property on the island.
Legal issues when investing in Bali
Real estate in Bali cannot be bought by a foreigner if he is only an individual. To buy real estate, it is necessary to have a company - a legal entity. Therefore, the first step to investing in real estate in Bali must be the formation of a company.
A legal entity will allow you to buy land, a villa, invest in construction, but there is one important condition. The property will belong to you as long as your company operates in Indonesia. A company that leaves the country's market is obliged to sell its property. Agree, the approach is quite honest.
What is profitable to invest in?
There are several proven ways to invest in property in Bali:
• Invest in a finished object, that is, purchase a villa or apartment for subsequent rent, or sale after a while
• Invest in construction (this method, if invested in the right construction, will bring significant income)
• Invest in housing in need of repair and renovate (this, if a good property is found, can provide a 30% annual return)
If I bought a house in Bali, who can I sell or rent it to?
There are only two types of buyers in the Bali real estate market:
• Residents of Indonesia, who are now actively acquiring real estate themselves (recall the rapid growth of the country's economy in recent years)
•Foreigners. As a rule, they rent housing. They are interested in living in Bali not all year round, or often change housing
What should be considered when buying land and real estate?
When you buy land, be sure to involve an agent who will legally secure the deal. The lawyer must check local municipal laws, the status of a particular object or piece of land. And if you buy an object (for example, a villa) from a company that you have doubts about, you should find out about other objects of the company, check the project documentation, etc.