Bali as one of the world-famous holiday destinations is now a great place for a foreigner to put down some investment. The small island with incredible culture, tradition, religion and cuisine is always a great place to spend some vacation. With that consideration, some realtors start taking a look at property for sale in Bali. If you are interested in it, here are some pinpoints to know.
Things To Know About Buying Property In Bali
1. Tittle To Obtain For Foreigner
One thing that every foreign investor needs to understand is that they cannot have a property in Bali. In this case, there are some laws and processes that currently only allow a foreigner to own several titles to uses. Thus, they got the chance to use, lease, or build property in the famous island or the rest of Indonesia.
In this case, a foreigner cannot acquire Hak Milik or the title as the right to own. It is the strongest one which is a freehold title, but it only available for local citizens or companies. Foreigners can obtain Hak Pakai or the title as a right to use. It is the best one that allows you to get exclusive uses of your property for sale in Bali.
There is also a title as leaser or Hak Sewa. It is another good option for a foreigner that allows them to lease the property with periods up to 50 years. And lastly, you got the right to build a title or Hak Guna Bangunan. It is available for local citizens and PMA companies. Indonesia is currently making changes to this law to attract more foreign investors.
2. Purpose For Real Estate
You need to think about the purpose of buying property before you buy property. The reason goes to the zoning area in Bali, which includes agriculture, residential, and tourism. Each zone has different laws, such as you cannot rent your villa in the residential zone. The point is to make sure you got the right zone for your property for sale in Bali.
Since you got a lot of zoning to think about, the best investment is the tourism zone. In this case, you also need to underline some of the best locations for your property. You can opt for some famous locations such as Seminyak, Canggu, Ubud, Sanur, Uluwatu, and many more. Each area has diverse tourism attractions, places, and price tags.
4. Conducting Due Diligence
The last thing that you will find in the property deal is Conduct Diligence. It is very vital, considering you are doing business in a foreign country. The due diligence for property for sale in Bali will check every kind of certificate, title, and data. It includes the Hak Milik, taxes, security, zoning, and more. So, you can avoid a problem later on.
Considering how foreign investors are now in a different country, they need to follow the Indonesian rules regarding property law. While there is no quicker or easier way to own one, Indonesia is currently trying to open up with a foreign investor. In meantime, you can invest your money with some of those ideas in your mind.