5 Steps to Buying Your First Investment Property in Bali
- Helis Laan
- Apr 19
- 6 min read
Bali, known as the “Island of the Gods,” is famous for its stunning beaches, warm culture, and year-round tourism. These qualities make it a dream destination for travelers and a top choice for real estate investors. The island's year-round tourist influx ensures 70-90% occupancy rates for house and apartment rentals. Rising property prices make it a great place for real estate investment. As a result, owning property in Bali is an excellent investment opportunity.
However, buying property in a foreign country comes with its challenges. It can feel overwhelming if you’re not familiar with the process or local laws. To make this process as easy as possible, we've put together the most important steps you need to know. This guide breaks everything down into five simple steps to help you confidently buy your first investment property in Bali.
1. How to Get Started with Real Estate Investment in Bali?
Research the Bali Real Estate Market
Before buying property, it’s important to know what Bali’s real estate market has to offer. The island has different areas that appeal to different types of investors. For example:
Seminyak and Canggu: these vibrant and popular areas are particularly attractive for tourists. The luxurious and comfortable properties here are favoured by travellers who prefer to stay in local villas rather than hotels.
Ubud: characterised by a peaceful atmosphere and a focus on health, this is the ideal destination for yoga retreats and cultural experiences.
Nusa Dua and Jimbaran: these quieter areas offer luxury resorts that are perfect for families and anyone looking for a more tranquil environment.
Take some time to find out what property prices are in the different areas. For example, prices for villas in Seminyak tend to be higher than in other quieter areas, as it is a very popular tourist destination. By understanding the rental potential and typical occupancy rates in each location, you can make an informed decision about where to invest. Keep in mind that property values in high-demand areas like Canggu are likely to rise significantly over time, offering both short-term rental income and long-term capital gains.
By understanding the potential of each location, you can make the best investment decision for you. For a better insight, book a meeting with our CEO. Through a video consultation, we’ll help you narrow down the best areas and properties for your investment.
How to buy property in Bali?
There are two main ways to buy property in Bali: Off-Plan or On-Plan. Both approaches have their advantages and disadvantages. Off-Plan is buying a property that is still under construction and has the following advantages:
Higher profit potential: the price of the property under construction is significantly lower than its final market value, offering the possibility to earn up to 40% profit.
Flexibility and customisation: you can tailor the property to your needs and wishes.
However, it should be noted that off-plan properties can take time to generate rental income, as well as the potential risks associated with the construction process. On-Plan means buying a ready-to-use property that you can start using immediately. The main advantages are:
Immediate rental income: a ready-built villa allows you to start generating income immediately after purchase.
Less risk: you can see exactly what you are buying - both the condition of the property and the materials used.
When making your choice, think about your budget, timeframe and goals. If you would like to find out more, book a meeting with us - we can help you analyse the different options so you can make the best choice for you.
Understand Ownership Rules
Foreigners can’t own freehold property in Indonesia, but there are other smart ways to invest. Most foreigners lease property, which gives you long-term rights to use it. Alternatively, you can set up a foreign-owned company (PT PMA). Each solution provides legal access to real estate but requires careful attention to legal details.
Keep in mind that Indonesian laws governing foreign ownership can change over time. Therefore, it is wise to work with local lawyers who will keep you up to date with various changes. For example, interest rates or government policies can affect financing options and rental prices, so it is important to be properly informed. Working with experienced real estate developers in Bali will help you to better understand the local rules and ensure that transactions are compliant with the law. By working with us, you can be sure that all the details are in place and risks are mitigated.
2. Booking a Villa
A property development company that knows the Bali market can save you both time and money. The right partner can help you find a property that meets your budget and goals. Our team will support you throughout the process, providing solutions that meet your timeframe and investment goals.
Secure Your Booking
Once you’ve found a villa you like, you’ll need to place a deposit of 5000 € to complete the purchase process. Before you make the payment, you should check the exact terms and conditions to avoid any unpleasant surprises later.
3. Starting a Business in Indonesia
Establish a Local Company (PT PMA)
Foreigners can invest in real estate in Bali in a number of different ways. For example, through long-term leases or by setting up a foreign-owned company (PT PMA). The last method is one of the safest ways and most flexible options for investing in real estate, ensuring that transactions and contracts comply with Indonesian law.
All you need to set up a company is a valid passport and the whole process can be completed conveniently online, without having to visit Indonesia. On average, company registration takes about one month.
Our experienced team will guide you through all the legal issues, ensuring that your documents are correct and your investment is fully compliant with local laws. We will assist you throughout the entire process, making setting up a company in Indonesia as quick and hassle-free as possible.
4. Signing a Lease Agreement with a Notary
It is important to understand the terms and conditions of the lease contract. Check whether the contract contains an automatic renewal clause or requires renegotiation in the future. All of these details can have a significant impact on the long-term return on investment.
The notary plays a key role in Bali real estate transactions - it is he who draws up and confirms the lease contract, making it legally binding and protecting both parties. Our team works with experienced notaries to ensure that all the terms of the contract are clear, fair and in your best interests. In addition, we help you understand and negotiate important details, such as renewal clauses, to avoid unpleasant surprises in the future.
5. How to Customize Your Bali Villa to Your Taste?
Personalised interior design
If you think buying a villa is just about choosing a location and picking up the keys, wait a minute! There are many more ways to create a truly unique home than first meets the eye. Many investors underestimate the importance of personalised design and end up with a property that doesn't match their vision or reflect their style.
Customizing a villa in Bali allows you to create a home that is entirely your own - from materials and colours to design elements. This flexibility gives you the freedom to make a traditional property more luxurious and personal.
Add uniqueness with custom-made furniture
If you want your villa to be truly special and stand out, choose bespoke furniture. It adds luxury and personality and makes your property truly unique. We offer a range of furniture packages, priced as follows:
2-bedroom villa - €10 000
3-bedroom villa - €15 000
4-bedroom villa - €20 000
This price includes everything from movable furniture to built-in furniture.
Your Villa is ready for investment
Once everything is ready, we will officially hand over the keys to your dream villa. You can then start earning a steady rental income or enjoy the villa as your own personal paradise - the choice is yours! If you decide to rent out your villa, the next step is to add it to your booking platforms.
To make your property stand out from the crowd, we use high quality photos, engaging descriptions and strategically set pricing. Travellers often make their choice based on visual first impressions, so investing in professional photography is crucial.
Property management services
Managing property remotely, especially if you are living outside of Indonesia, can be a real challenge. That's where our full management service comes in, taking care of all the day-to-day operations, from dealing with guests and cleaning to maintenance and financial reporting. Professional management services ensure a seamless guest experience, resulting in more positive reviews and more bookings.
Our full management service covers all the necessary aspects - from maintenance and cleaning to guest relations. This means the whole process is completely stress-free for you. If you ever decide to put your property up for sale, our team of experts will take over the management: we'll take care of the marketing, negotiations and documentation.
Contact us
Are you ready to take your first step in the Bali real estate market? If you would like to get more information, please contact us by email info@venturevillasbali.ee or book a video meeting with our CEO. We will be there for you throughout the entire process and assist you with our knowledge to ensure a smooth and worry-free investment experience!