Bali offers various investment options to cater to diverse preferences. Whether you seek a beachfront paradise in Seminyak, the lush tranquility of Ubud, or the surfer's haven in Canggu, Bali provides a variety of locales, each with its unique charm. This diversity allows investors to choose a location that aligns with their lifestyle and investment goals.

Favorable Exchange Rates and Affordability:

The favorable exchange rates in Indonesia make Bali an affordable investment destination for expatriates. With a reasonable investment outlay, you can own a piece of paradise without compromising on the quality and amenities of your dream villa.

Ease of Doing Business:

Indonesia has made strides in simplifying its business regulations, making it easier for foreigners to invest in property. The Indonesian government has implemented measures to streamline processes and provide greater clarity, creating a more conducive environment for expatriates looking to invest in Bali.

Natural Beauty and Outdoor Activities:

Bali's breathtaking landscapes, including pristine beaches, lush rice terraces, and volcanic mountains, offer a paradise for outdoor enthusiasts. Whether it's surfing in Uluwatu, exploring the water temples in Ubud, or trekking Mount Batur, Bali provides many activities for those who appreciate nature and adventure.

High ROI and Strong Resale Value:

The demand for Bali's real estate remains robust, contributing to the island's strong resale market. As Bali continues to attract global attention, properties in well-chosen locations are likely to appreciate over time, offering a sound investment with potential returns.

Community and Expat Network:

Bali offers a thriving expatriate community, providing a supportive network for newcomers. The diverse community includes individuals from various backgrounds and professions, creating a welcoming environment for expats. Connecting with the local and expat community enhances the overall living experience and adds value to your investment.

In conclusion, Bali stands as a beacon of opportunity for expatriates seeking a rewarding villa investment. From its diverse locations to the promise of a rich lifestyle, Bali encapsulates the essence of a tropical paradise with a robust real estate market. For those considering Bali as your investment destination is not just a financial decision but a step towards an enriched and fulfilling life in one of the world's most coveted destinations.

Turnkey Beach Townhouse for Sale Leasehold in Berawa Beach, Canggu

Investing in turnkey real estate is an excellent way to generate passive income as turnkey properties don’t need the buyer’s time and effort to run. It can take a while for properties to start generating income especially if the buyer has no experience in running a rental, and owning a good turnkey property backed by a reputable management company can jumpstart the buyer’s cash flow almost immediately. Moreover, renters won’t have a problem paying a premium for a well-managed and high-quality property.

How does turnkey work?

The buyer will sign a management agreement with pre-arranged terms on how often the buyer can stay in the property, on what basis does the buyer receive their income, and so on. The terms of the agreement vary by the management company, with some offering flexible arrangements that allow the buyer to stay indefinitely and some limiting the stay to only several days/months in a year for the best return.

Turnkey Apartment inside a Beachfront Resort for Sale in Gili Trawangan

The fee of turnkey property management is commission-based, and the management of a villa complex usually charges more than a standalone villa as they include maintenance for common facilities. But that doesn’t mean that the buyer will have a lower yearly payout because the occupancy and daily rate of such villas tends to be higher and it’s better to get 60% of 100$ than 80% of 50$. Nonetheless, the return will largely depend on how well the management company rents out the property and how attractive the property is for short term rental.

Are turnkey properties a good investment?

Yes they are, especially for long distance real estate investors and newcomers. As stated in the beginning, turnkey investment properties are the perfect solution for hassle-free investing as the buyer doesn’t have to lift a finger to generate income. In addition, long-term management agreements offer the opportunity to enjoy years of effortless living which is a luxury that most landlords can’t afford.

Turnkey Hilltop Villa inside a Boutique Resort for Sale in Lombok

Most turnkey properties for sale that you can find these days are off-plan villas or apartments, and Bali Home Immo has a handpicked collection of properties with excellent ROI and prime locations that will certainly suit your investment goals. For more information on real estate investment or turnkey properties for sale in Bali, do not hesitate to contact us.

Disclaimer: The content of this publication is provided as general information only and does not constitute legal, financial, tax, or other professional advice from Bali Home Immo. Some of the information provided on this publication is obtained from a third-party source and we do not guarantee that the content of this publication is accurate, complete or up-to-date. Past performance is not indicative of future performance and should not be relied upon as a basis for an investment decision.

If you don’t want to be a landlord or prefer to sell rather than rent out, you can buy off-plan villas and then resell them upon completion. Buying off-plan means that you’re purchasing a property before or during its construction at a lower price, and then you can sell it again at a higher price after it’s finished. There are more risks in buying off-plan compared to buying a finished villa, but buying the project from a trustworthy agent and a reputable developer is key to this kind of investment. 

What about investing for passive income? Then turnkey properties are the answer. These types of property are offered with a management program that handles the operation, maintenance, sales and marketing of the villa while the owners are allowed to stay in the property for a certain duration every year. That way, you will have a fully serviced vacation home that generates rental income without having to lift a finger.

How much does it cost to buy property in Bali?

As discussed in a previous article, the price of a newly built modern villa on a 3 are land in Berawa offered with a 25 year leasehold starts from $300.000 whereas land price in the area is around $1000-$1700 per are per year. Property prices in tourist areas such as Seminyak, Kuta and Canggu are very high, hence you should consider regions such as Padonan, Babakan, Pererenan, Cemagi, or Tumbak Bayuh for inexpensive options.

There is a wide variety of more affordable alternatives available if you don’t have the budget for a brand new villa. If you don't need large space, consider investing in apartments instead as you can find good ones priced between $60.000-$150.000 in Canggu and the surrounding areas. Alternatively you can choose to buy an older villa and then renovate it, which will be more time consuming but can save you a lot of money. Regardless of which option that you choose, it’s possible to invest with a budget of $150.000 or less.

Luxury and beachfront properties are expensive (starting from $500.000 and up) but the price is justified by their higher rental and occupancy rate. It’s really difficult to find beachfront villas for sale in Bali because they’re fairly easy to rent out and owners wouldn’t willingly sell such a profitable investment. Luxury villas for sale are easier to find, but you need to assess the property’s financials first to determine whether it’s a good investment or not. One way to achieve this is by requesting an ROI forecast from the developer or the real estate agency that lists the property.

Note that you will also have to take 5% transfer tax for freehold purchases and notary fee into account as well. Luxury houses (priced ~$1.38 million and above) and condos (priced ~$690.000 and above) are subject to 20% sales tax on luxury goods.

How do I buy property in Bali?

The process of acquiring property in Bali can be safe and straightforward if you work with partners that you can trust in securing your investment. Indonesia’s legal system is very different and you have to get good legal advice before committing to any decision. A professional real estate agency is the place to go as they can guide you through the transaction process, appoint a reliable legal advisor, provide useful investment advice, find properties that match your search criteria, and help you rent out or resell your property later on.

Avoid buying properties from questionable sources and using risky methods such as the nominee arrangement, the only safe approach of acquiring property is either with a leasehold or a foreign investment company (PT PMA). Foreign individuals have the right to rent a property in Indonesia, whereas establishing a PT PMA demands a lot of resources but provides greater freedom and better protection.

What should I do next?

Sit back, relax, and enjoy the island life. Consider renting out your villa occasionally or when you’re overseas for cash flow and your property won’t be unattended while you’re away. If you choose to sell the house in the future, asking for a valuation from real estate agencies will reveal the property’s market value and having the right price will increase the likelihood of selling quickly. 

Should you hire a property manager or manage the rental yourself? Handling a rental property requires constant attention and not everyone has the time or energy for that. For a hassle free experience, hire a trustworthy management company that will ensure your property is well managed by providing full-time support including sales, marketing and operational support so you can focus on everything else and enjoy the rental returns.

For more information on investing in Bali property or real estate related matters, do not hesitate to contact us as we’re more than happy to help.