Investing in Bali’s real estate market can be a seamless journey, provided you’re armed with the right insights and tools. There’s much to be gained from actually experiencing the property first-hand, interacting with the landowner, and scrutinizing all facets of the property in question. This comprehensive guide outlines 20 critical aspects that can significantly enhance your property acquisition experience in Bali. 

LOCATION, LOCATION, LOCATION

The initial and pivotal decision in your Bali property investment journey is location. Consider your intentions – are you intending to reside or are you seeking to generate passive income through renting? Always survey the location and its surroundings personally. Future developments in the area should be explored too. For instance, if the goal is to rent out the property, locations like Canggu and Bukit, tourist hotspots known for their proximity to beaches and idyllic landscapes, would be wise considerations.

PROPERTY AND LAND SIZE

Commonly, as you move away from the city centre towards the lush expanse of the island, properties tend to be more expansive. It’s beneficial to consider the potential of your land. If it can house two villas, perhaps it should. For hosting different clients, each villa should ideally have its own amenities such as a garden, pool, and separate entrance.

An alternative to this approach is a “destination” villa, akin to a luxury 5-star hotel, replete with facilities and services for hosting events like weddings, anniversaries, and corporate functions. Therefore, outlining the purpose of your villa is an essential step that can steer your marketing efforts effectively.

UNDERSTANDING SOIL CHARACTERISTICS

A prerequisite to building a villa is having suitable soil conditions. A Soil Investigation Analysis can verify the firmness of the ground, preventing future structural problems in your villa.

ROAD ACCESS

Ensure that the road linking your property to the public road is indeed public, and not privately owned. Also, consider its condition and suitability for access.

ACCESSIBILITY

Prospective clients (mainly tourists) often prefer accessibility to the beach, shops, and dining options. Make sure the street leading to your property is wide enough and relatively quiet, which is an important factor when choosing your villa’s location.

LAND CERTIFICATE

Hiring a notary or lawyer can simplify the process of inspecting a plot. Key areas to focus on are whether the land certificate corresponds to the right plot and if all certificate numbers are consistent. Double-check the land parameter documents for the accurate plot size and ensure all legal documents are satisfactory, correctly signed, and align with your needs.

LAND USE RESTRICTIONS AND ZONING

A Building Permit (IMB) is necessary for any construction, and is only granted if the land is within the appropriate zone. In Bali, for instance, your villa must not exceed the height of the nearest temple, among other restrictions. “Setbacks” also regulate the distance of your villa from natural formations, man-made structures, and roads. Hence, consulting a legal advisor on these regulations is crucial.

COMMUNITY RELATIONS

Engaging with the local Banjar, a council overseeing community work and upholding traditions in every Balinese village, is advisable. Often, locals welcome foreigners who participate in community work or contribute financially. Having a local Indonesian who understands the cultural dynamics can be instrumental in this process.

WATER SUPPLY

Ensure your villa has a connection to the local Water Supply Company PDAM. If not, alternative options include digging a well for a reliable water supply or arranging for a water truck to refill your villa’s water storage tank.

ELECTRICITY

Establish whether the property is connected to the local electrical grid and the National Electricity Company (PLN). If not, the cost of installation depends on the distance to the local grid and the desired wattage. Voltage regulators and backup generators can safeguard your property from frequent power outages and voltage drops.

DRAINAGE

Inspect the land’s condition and the existing provisions for surface water runoff in the area. Due to rapid construction growth and insufficient stormwater runoff preparations, many areas are prone to flooding during the rainy season.

TELECOMMUNICATIONS / INTERNET

Ensure that there are landlines for the phone, possibilities to install fiber optic cables for fast internet, and cell phone connections. Note that fiber optic connections are mostly limited to the main cities of Seminyak, Jimbaran, Sanur, Canggu, and Nusa Dua.

LANDSCAPING

Numerous companies can supply fertile soil and undertake year-round garden maintenance, given Bali’s fertile land and rapid vegetation growth.

BUILDING MATERIALS

Enlist the help of a trained building surveyor to assess the structural integrity, electrical systems, machinery, plumbing, ventilation, and potential pest infestations of the building.

PEST MANAGEMENT

Regular pest control is crucial, especially for wooden villas, as termites and rats can cause extensive damage over time.

BEACHES

If your villa is near a beach, understand the tide levels and safety of the beach by talking to locals or experts. Salt and sand in the air near the beach can affect paint, wood, and other constructions, making marine-grade finishing an essential consideration in your design.

NATURAL ORIENTATION & VIEWS

Balinese homes often aim to deter heat rather than attract sunlight. Constructing homes with east and west-facing windows, and on cliffs or near rice fields, can harness natural resources to reduce maintenance costs.

SWIMMING POOL

If the property includes a pool, inspect its tiles, pump quality, and drainage system thoroughly. Subpar installation or maintenance can lead to time-consuming and expensive renovations.

CONSTRUCTION & BUILDING TAXES / LICENSES

Ensure the relevant construction taxes (PPn) have been paid. Also, if you intend to rent your house, ensure that a Pondok Wisata license (rental license) is in place.

PARTNER WITH EXPERIENCED PROPERTY SPECIALISTS

Engaging experienced and reputable property specialists is key to successful property investment in Bali. At Balivestor, we pride ourselves on our wealth of experience and top-notch reputation, providing expert guidance and assistance to investors and individuals alike.