Bali has seen abrupt expansion in the real estate market over the past few years and is quickly transforming into a worldwide investment hotspot. Famous for its striking scenery, lively culture, and rapidly growing tourism sector, the island provides an ideal mix of lifestyle benefits and investment opportunities not just for the experienced investors but also for novices that’s starting out. Among the leading investment options are affordable apartments in Bali, which combine cost-effectiveness with convenience and offer considerable prospects for rental revenue and long-term appreciation.
Prime locations such as Ubud and Canggu are attractive for apartment investment opportunities especially if you’re new to the investment culture. However, exploring Bali’s real estate scene requires careful assessment of the rental market, a solid understanding of the legal responsibilities associated with property investments, and a strong comprehension of the market dynamics and the opportunities present. In this guide, we will be exploring affordable Bali apartments specifically in Ubud and Canggu, legal factors, investment procedures, and everything you need to know before investing in your choice of property.
Why Invest in Bali?
Before delving into the specific property options, it’s important to understand why Bali has emerged as a top spot for real estate investments.
Bali is among the most popular islands globally. Named as the #1 travelers’ choice in 2021 by TripAdvisor, Bali maintains its appeal to millions of visitors each year, fueling a booming rental market, consequently cementing its spot as a global real estate magnet through the years. This translates to a constant demand for rental properties, either from tourists or expatriates seeking long-term accommodations.
Bali specifically stands out due to its blend of luxury and affordability. In comparison to other worldwide tourist spots, Bali’s property prices are notably affordable, whereas rental returns are substantial. The Indonesian government’s support in foreign investments, simplifying the process for international buyers to acquire property on the island, also adds to its investment charm.
Why Are Affordable Bali Apartments a Smart Investment?
Apartments in Bali offer several advantages over traditional villas. They are typically less expensive to buy and upkeep, making them perfect for novice investors. Apartments also attract a wider range of renters, encompassing travelers in search of temporary lodging as well as expatriates in need of extended living accommodations. For investors, this indicates that it is possible to enter the market with a small budget and still experience considerable rewards. For travelers, on the other hand, this means they can experience accommodations that are comfortable and trendy all while nearing the island’s points of interest—qualities that apartments can provide at a more affordable rate than luxurious accommodations.
Because cheap prices appeal more to every traveler, vacationists and expats alike, there has been an obvious increase in rental demands for apartments especially in vacation hotspots like Ubud and Canggu. This guarantees a continuous flow of revenue and minimizes the likelihood of empty units ultimately, making them an intelligent option for investors looking to generate rental income or witness an increase in property value over time.
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Affordable Apartments in Bali
If you’re thinking about your investment options in Bali, might as well consider these two most popular Bali destinations: Ubud and Canggu. These areas house unique attractions and cater to various types of travelers, creating stable rental demands and providing many options for those eyeing to buy or invest in apartments.
Property Investment in Ubud: The Cultural Heart of Bali
Property investment in Ubud remains to be a wise decision for those seeking long-term returns. As the cultural and spiritual hub of Bali famous for its lush rice terraces, yoga retreats, and a vibrant art scene, it consistently draws in a more relaxed audience, particularly those tourists and digital nomads in search of peace and a bond with nature. As such, the demand for rental properties in these areas is consistently high.
The Ubud housing market identifies these affordable apartments catering to different budgets and preferences:
The Parq Ubud: Tropical Mediterranean Balinese Experience
If sustainable budget-friendly Bali apartments designed with contemporary aesthetics and Mediterranean influences is what you’re into, consider The Parq Ubud. Designed with modern minimalist features such as clean lines, arched windows, and open-plan layouts blending modern comforts with a serene tropical vibe, these apartments offer both comfort and style. Not just that, it is also complete with family-friendly amenities like a kids’ playground, a fully-functional wellness gym, a co-working space, swimming pool, and several indoor restaurants and cafes, catering to a wide range of lifestyles.
Investing in The Parq Ubud is a strategic move, given the area’s consistent demand for peaceful accommodations that attract both short-term visitors and long-term residents seeking tranquility and authentic Bali experiences. It is also relatively cheap with its 1-bedroom apartment priced at just 58,705 USD. Financing options are also available, with a loan amount of 52,835 USD and a manageable monthly payment of 4,405 USD at a 0.1% interest rate, offering a practical path to ownership.
Aura Apartments Ubud: Contemporary Balinese Experience
Aura Apartments Ubud stands out for its prime location in the heart of Ubud. This contemporary residential complex offers modern amenities like a coworking space, a swimming pool, and a cinema, creating an inviting space for residents and renters alike.
For visionary investors trying to enter Ubud’s housing scene, Aura Apartments is a smart choice. Its proximity to Ubud’s top attractions such as the Monkey Forest, rice terraces and nearby restaurants makes it highly appealing to both tourists and long-term renters, ensuring consistent rental demand poised for long-term appreciation.
If you’re considering investing in Aura Apartments Ubud, a 1-bedroom apartment is priced at 66,570 USD. You can also opt to pay a monthly amount of 4,995 USD for a year following the required 10% down payment.
The Vodopad Apartments: Modern Balinese Retreat
For those seeking a blend of tranquility and modern living, The Vodopad Apartments boasts stylish apartments with private balconies offering panoramic views of the nearby jungle and waterfall. These apartments combine Balinese architecture with contemporary amenities, providing an ideal space for relaxation while immersing you in Bali’s serene surroundings.
Whether you’re looking for an investment to give you financial stability or just a peaceful haven to unwind, Vodopad Apartments offers a harmonious mix of comfort, culture, and natural beauty. And such, owning a 1-bedroom apartment in this complex for about 74,520 USD in the competitive Ubud real estate market is such a steal!
6A Heaven View: Nature at Its Purest
If you’re seeking a peaceful retreat that fully immerses you in the heart of the jungle, 6A Heaven View is the perfect choice. Set on a terraced mountainside and surrounded by verdant trees, this property offers unobstructed sunrise views and a tranquil atmosphere. Its open design allows guests to fully embrace the surrounding natural beauty while also enjoying the cultural richness of the Saraswati Temple and Neka Art Museum nearby.
Ideal for eco-conscious investors seeking high-value opportunities, 6A Heaven View strikes the perfect balance between luxury and sustainability. While it may be priced higher than other Ubud apartments on this list, a 1-bedroom unit is available for just 106,000 USD, making it a more affordable apartment option compared to properties in other Bali neighborhoods. Additionally, its focus on culturally immersive, mindful getaways ensures steady rental demand, while its unique connection to nature and prime location offer promising long-term growth and sustainable returns for investors.
Investing in Canggu Real Estate: The Trendy Coastal Town
Canggu has quickly become one of Bali’s most desired destinations, particularly for lifestyle enthusiasts and property investors. It specifically has become the go-to for surfers, digital nomads, and young travelers that finds places offering a mix of leisure and efficiency alluring.
Whether you’re looking for an affordable rental apartment property or a stylish residence near the beach, Canggu’s real estate market offers excellent potential for strong returns and a dynamic lifestyle. Unlike Ubud’s serene and traditional vibe, Canggu’s apartments are designed with the needs of professionals in mind, offering modern amenities that cater to a work-life balance, making it an ideal location for investment properties targeting short-term rentals.
The Nexa Apartments: Perfect Balance of Calm and Extreme
The Nexa Apartments Canggu is more than just a place to stay—it’s an ideal place to feel the comfort of modern living. Situated just a 5-minute drive from Echo Beach, this property offers a perfect blend of relaxation, wellness, luxury, and convenience perfect for youngsters and adventurers. It also allows guests to have access to several high-end amenities including a rooftop infinity pool and rich green gardens to enjoy majestic panorama views of the sea and sunset. This beautifully designed community is also tailor-made for fitness enthusiasts and adventure seekers who want to busy themselves with the fully-functional fitness center and other extreme physical activities, all while being close to Canggu’s top attractions.
For investors, its closeness to top destinations like Tanah Lot temple and the vibrant beach nightlife at Seminyak and Kuta, ensures high rental demand, making it a valuable asset for long-term growth. A 1-bedroom apartment here is priced at 163,950 USD, or you can pay in monthly installments of 12,300 USD with a 10% down payment.
Whether you’re seeking a luxurious retreat or a solid investment in the Canggu real estate market, Nexa Apartments delivers on both fronts.
Buddha Club House: The Greens of the Coast
If you’re dreaming of a getaway that combines contemporary luxury with the soothing vibes of coastal living, Buddha Club House is the one for you. This inexpensive Canggu apartment complex offers you nature views all while being a few drives away from Canggu’s beaches! It also features a beautiful roof terrace with amenities such as a high-end restaurant, a pool with a view and a bar and cinema. Each room also has its own private balconies offering excellent views of the sun materializing relaxation and convenience, making it the perfect spot for families and travelers alike.
For investors looking to enter the Canggu property market, Buddha Club House provides unique accommodations that generate significant rental demand, guaranteeing steady returns. A 1-bedroom apartment here is priced at 111,350 USD, or you can choose to pay in monthly installments of 8,355 USD over a 1-year term, following the required 10% down payment.
With its coastal charm, modern amenities, and promising investment potential, Buddha Club House presents a valuable opportunity to consider.
Amazona Jungle Resort: Canggu’s Hidden Gem
For an apartment that gives you access to peace away from the busy beach nightlife, Amazona Jungle Resort is your place to be. Located on the quieter part of Canggu village, it has 41 jungle apartments and world-class amenities including mud treatment salons, a waterfall restaurant, a spa cave, and two infinity pools, perfect for those looking to enjoy a laid-back Bali experience but also not wanting to miss out on the busy Canggu neighborhood.
Those wanting to invest in affordable Bali properties will find Amazona Jungle Resort’s hidden appeal a great option for targeting travelers seeking holistic experience. A 1-bedroom apartment at this tranquil resort is priced at 145,000 USD, taxes included, making it a valuable opportunity for those looking to own a slice of paradise in Bali.
How to Invest in Affordable Bali Apartments
- Define Your Goals: First, defining your goals and setting your priorities straight will help you pick the best location and apartment choice for your investment. To do such, it is important to ask yourself whether you are buying for rental income, personal use, or long-term investment.
- Choose a Location: Research the different areas in Bali to find the best fit for your investment objectives. Each Bali neighborhood appeals to various kinds of travelers, so it’s essential to first determine your target tourist market. Your budget will also guide you in choosing between investing in the established hotspots or taking a chance on the emerging destinations. Be aware that popular spots typically have elevated initial prices compared to developing destinations.
- Visit Properties: Seeing properties in person can help you assess their potential and make informed decisions.
Pro tip: Never make an investment just based on pictures and unreliable hearsays. - Work with Experts: While doing everything on your own may seem cost-effective, a trusted real estate agent and lawyer can assist you through the process and help guarantee that all your actions comply with Bali’s regulations and are legally valid. Unlawful investment activities in Bali are costly and the severity of the penalties (e.g. fines) depends on the laws violated.
Additional Tips Before and After Entering Property Investment in Ubud and Canggu
- Perform In-Depth Market Research: Outlining your investment objectives, budget, and priorities necessitates a strong comprehension of the market trends, property prices, and rental needs of your selected location. This way you can lay out the appropriate investment strategy to employ to ensure reasonable financial gains.
- Consider Ongoing Expenses: Plan for maintenance, taxes, and property management charges.
- Account for Additional Hidden Costs: Tapping into Canggu real estate and Ubud housing market through purchasing or investing in a Bali property goes beyond just paying the property’s price; you also need to allocate funds for other hidden costs like permits and essential documentation. Noncompliance can transform a seemingly affordable purchase into an unanticipated financial burden.
Legal and Regulatory Considerations for Bali Property Investment
Property investment in Ubud, Canggu and Bali as a whole presents several difficulties. As a foreigner, you need to maneuver through a complex legal landscape to guarantee your investment is secure.
Property Ownership Laws for Foreigners
Direct freehold ownership by foreigners is prohibited in Bali, but there are other legal alternatives you may consider:
- Leasehold Agreements: Depending on the contract, you may lease a property for up to 30 years, with the possibility of extending it to approximately 40-50 years. The terms of the lease are typically agreed upon between the property owner and the tenant.
- Hak Pakai (Right to Use): This grants foreigners ownership of property for a period of time under some conditions.
- PT PMA (Foreign-Owned Company): Setting up a company allows you to legally own a property under the company’s name.
Tax Requirements
As a property owner, you are liable to pay taxes on rental incomes and property transactions. The nature of ownership may influence the taxes payable, so it is wise to seek the advice of a local accountant. Here are several taxes that every investor ought to recognize:
- Rental Income Tax: Ranges between 10% to 30%, depending on the rental agreement.
- Land and Building Tax: Commonly referred to as PBB (Pajak Bumi dan Bangunan), this property tax requires yearly payments and is computed according to the property’s assessed value or NJOP. Apartments usually incur a lower property tax, set at 0.5% of the assessed value. The land tax rate varies by region, potentially dropping to as low as 0.1% to 0.2%.
- Property Transfer Tax: This tax is paid during property transactions, usually around 5% of the assessed sale value.
Funding and Loans
While most foreigners pay in cash, some international banks provide financing options for most cheap properties in Bali. It is also advisable to learn the terms and conditions as well as the eligibility requirements when considering mortgage.
Building Permits and Zoning Regulations
Prior to buying property, you must also verify that it meets local zoning regulations and possesses all the necessary permits. This is particularly crucial if you intend to develop or refurbish the property.
For most properties as in apartments, it’s necessary to obtain the IMB (Izin Mendirikan Bangunan) from the Regional Government prior to constructing, building, or expanding your property. You’ll also be required to comply with the PBG (Persetujuan Bangunan Gedung) permit to ensure that your building and construction designs meet environment, safety, comfort, health, and convenience standards. Lastly, you must possess a copy of your SLF (Sertifikat Laik Fungsi) document, which certifies your property is safe and suitable for use.
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FAQ
Acquiring affordable apartments in Bali can yield stable rental income, particularly in sought-after locations such as Ubud and Canggu, attracting both tourists and expats. The steady need for short-term rentals creates this profitable chance to grow your investment portfolio.
You can find the most affordable apartments in Ubud at around $50,000 or even higher, while prices start at approximately $70,000 in Canggu. Generally, the prices vary depending on location, amenities and property conditions.
Yes, foreign investors are granted permission to own a property in Bali, but strictly in accordance with local laws. It would be highly beneficial to seek a lawyer who focuses on Bali real estate for improved guidance on the regulations and to ensure adherence to local laws.
Rental yields in Bali can range from 6% to 12% based on the location and management of the property. Locations like Ubud and Canggu have significant demand; thus, they are reliable places for achieving greater rental returns.
Knowing what you want and your non-negotiables is the first thing to identify. Then you can search online listings and consult local real estate agents for proper guidance. It is also best to visit properties in person, if possible. You also can connect with other investors and participate in local forums to get valuable insights and recommendations.
Ready to Invest in Your Chosen Apartment?
Investing in affordable Bali apartments is a wise decision for anyone aiming to expand their portfolio. With reasonable rates, strong rental demand, and a flourishing tourism sector, the island provides limitless possibilities for investors. Whether you’re attracted to Ubud’s tranquil allure or Canggu’s vibrant scene, the island’s dynamic real estate market caters to a range of investor goals.
By understanding your interests and priorities, considering legal factors, adhering to strategic investment procedures, and utilizing expert assistance, you can tap into the complete possibilities of the Ubud housing market and Canggu real estate scene with the promise of a steady income stream and a unique lifestyle experience.
So, if you’ve decided to embark on your next investment venture in Bali, now is the perfect time to explore your options and relish the stunning island that may soon turn into your second home.
