Buying Property in Bali: A Guide for Investors

Bali, often referred to as the Island of the Gods, is not only a popular tourist destination but also a lucrative real estate market. For investors, Bali provides unique residential real estate opportunities. This guide will cover the key aspects of buying property in Bali, aimed at investors looking to capitalize on the emerging market.

About SDG

Sunny Development Group (SDG) is a trusted real estate investment company with experience in property development and management. We offer a turnkey process that allows investors to purchase property and watch their income grow without the hassle typically associated with property management. Thanks to the year-round tourist season, our investors receive a stable income throughout the year. In 2023, our investors averaged a net return of 14% per annum, which is unrivalled compared to other regions of the world. We contractually guarantee a minimum of 12% per annum, which makes investments in real estate in Bali even more attractive and reliable.

Why invest in Bali?

1. Growing tourism industry: Bali's tourism industry continues to flourish, attracting millions of visitors every year. This constant influx of tourists creates demand for vacation rentals and residential properties.
2. Favorable climate and natural beauty: The island's tropical climate, stunning beaches and lush landscapes make it an attractive destination for both short and long-term stays.
3. Cultural appeal: Bali's rich culture and friendly local people create a unique and welcoming atmosphere for expats and investors.

Key aspects for investors

1. Understanding the rules of land ownership

Note: Foreigners cannot directly own land in Indonesia, including Bali.

However, there are legal structures that allow foreign investors to acquire property. One popular option is leasehold, a long-term lease agreement typically set for 30 years with the possibility of extending for another 30 years. Additionally, there is freehold (Hak Milik), which grants full ownership rights but is only available to Indonesian citizens and legal entities.

2. Available property types

• Villas: Investing in villas in Bali offers a high rental income. Villas provide unmatched comfort and access to exclusive amenities such as private pools and ocean views. The strong demand for rentals ensures a steady stream of tenants and substantial profits.
• Apartments: Residential apartments are attractive for investment due to high income from long-term and short-term rentals. The apartments provide good occupancy and return on investment, making them an ideal choice for efficient use of investment.
• Townhouses: They represent a combination of the comfort and privacy of a private home with the amenities of city apartments. They usually have several levels and small plots of land.
• Studies: Compact living spaces combining living and sleeping areas with a kitchen. Suitable for single people or couples who prefer minimalism and convenience in an urban environment.

3. Location meaning

• Canggu: Canggu is a trendy and dynamic area known for its stylish cafes, surf culture, and vibrant atmosphere. It attracts a community of young professionals and digital nomads, making Canggu a popular spot for luxurious villas and modern residential properties.
• Uluwatu: Uluwatu is renowned for its breathtaking cliffside views, world-class surf spots, and tranquil, secluded ambiance. It is the perfect location for those seeking a luxurious lifestyle away from the hustle and bustle, surrounded by exceptional natural beauty.

4. Return on Investment (ROI)

• Rental yield: Bali offers attractive rental yields, especially in high-demand areas such as Seminyak and Canggu.
• Capital assessment: With ongoing infrastructure projects and an increasing number of tourists, property values ​​in Bali are trending upward.

Benefits of choosing SDG

• Experience and professionalism: With over 12 years of experience in the real estate industry, we have successfully completed five projects in Bali and are preparing to deliver three more in autumn 2024, with three more under construction. Through strict adherence to quality standards and professionalism, we ensure high returns for our investors.
• Turnkey solutions: Our in-house property management team handles all aspects of property management, including maintenance, tenant management and rent collection. The investor simply receives income by having access to our application, where you can transparently track all changes, occupancy, management costs, taxes and other important indicators.
• Effective Property Management: Sunny Development Group handles every aspect of this process, including maintenance and tenant management. Our management company, with over 2.5 years of successful experience, has been recognized with numerous awards from Booking.com and Airbnb and is a partner of Marriott. We ensure a stable income and the highest return on your investments, as confirmed by the many positive reviews from our clients.

Steps to buying property in Bali

1. Defining investment goals

Decide whether you are looking for a vacation home or rental property. Your goals will influence your choice of property type and location.

2. Conduct due diligence

• Legal checks: Bali has a due diligence process known as due diligence. Before purchasing, clients contact an independent notary, who requests from us all the necessary documents and checks the transparency of the transaction, including the reputation of the developer, legal documents, land rights and capital. We have successfully passed more than 100 such checks, which indicates our reliability and professionalism.
• Property inspections: We adhere to the principles of openness and transparency in communicating with our clients, informing them at every stage of the investment process. When investing in construction, investors receive monthly photo and video reports on the progress of construction of their facilities. After the completion of construction and commissioning of the facility, we provide a detailed report on its rental.

3. Securing financing

While many investors prefer to buy with cash, we have other convenient options available. You can purchase real estate in instalments until the end of construction at 0%, or pay the entire amount at once and receive a discount. Also in a large number of countries through our partners, by bank transfer to our account or by cryptocurrency. In this case, you do not need to confirm your sources of income.

4. Conclusion of the deal

After clarifying all legal and financial aspects, proceed with the purchase and ensure that all necessary documents are signed and registered.

Conclusion

Investing in the Bali real estate market offers high returns and the opportunity to own a piece of paradise. With a thriving tourism industry, affordable prices for real estate and a favorable investment climate, Bali is an ideal destination for foreign investors. SDG's expertise and turnkey solutions provide a hassle-free investment experience, allowing you to enjoy the benefits of home ownership without the hassle that comes with it.

Note: Whether it's a holiday home or a rental property, Bali's diverse property market offers something for everyone.

Trust SDG to guide the process and manage your investment with professionalism and care. Our management company not only generates profit for investors, but also directly affects the return on investment. We are proud to partner with one of the best property management companies in the market, with multiple awards from Booking.com and Airbnb. We are also partners of the Marriott network and have been successfully renting out real estate for more than 2.5 years. Our clients leave numerous positive reviews, confirming the high level of service and professionalism of our team.

Ready to invest in the Bali real estate market? Contact SDG today to learn more about our facilities and services.

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