Buying your first villa in Bali is an exciting milestone – but navigating the local market as a foreigner? That’s where expert support becomes essential.
While the idea of owning a tropical hideaway may be new to you, it’s not new to your agent. A local real estate professional has helped many first-time international buyers secure properties in Bali. They know the regulations, understand the risks, and most importantly – they know how to make the process smoother and smarter for you.
Here are a few grounded tips to help you start your Bali property journey the right way:
Tip #1: Understand Foreign Ownership Rules First
Bali isn’t like buying back home. As a foreigner, you can’t directly own freehold property in Indonesia. But there are legal alternatives like leasehold agreements, or setting up a foreign-owned company (PT PMA) if you’re investing commercially.
Before falling in love with a villa, talk to an agent or legal advisor about what structures are actually available to you. Starting here will help you avoid legal headaches and focus only on properties that make sense for your status and goals.
Tip #2: Get Your Budget (and Currency Strategy) Sorted Early
A lot of first-time buyers in Bali look at villas first and think about budgets later. But currency conversion, leasehold terms, renovation costs, taxes, and notary/legal fees can really add up.
It’s smart to:
- Get advice on IDR to USD/AUD/EUR rates and how to transfer funds efficiently.
- Ask for all-in cost estimates for any villa you’re eyeing.
- Consider whether you’ll live in the villa, rent it out, or a mix of both – this will affect what kind of property makes sense financially.
A Bali-savvy agent will help you break down what your money can realistically buy – and avoid unpleasant surprises.
Tip #3: Always Do Due Diligence and an Inspection
Not all villas are what they seem – especially when they’ve been renovated to look good on Instagram. Some are built without the right permits (IMB/PBG), others have structural issues or drainage problems.
So don’t skip due diligence. Ask your agent to:
- Arrange a professional inspection.
- Verify zoning (e.g., whether you can legally rent it out).
- Confirm the villa has the correct certificates and legal standing.
It might delay your deal a little – but it can save you from losing thousands on a risky investment.
Tip #4: Your First Villa Doesn’t Need To Be Your Dream Villa
It’s easy to get caught up in the “Pinterest-perfect” villa vision. But Bali is a fast-changing market – and the smartest move is often just getting your foot in the door.
Many successful investors started with:
- A leasehold villa in an emerging area.
- A small, well-designed property with good ROI potential.
- A home with strong bones they could renovate later.
Your first villa is a stepping stone. Focus on something solid, legal, and within your budget. You can always upgrade later.
Bottom Line
Buying your first villa in Bali is a big decision – but with the right team, it doesn’t have to be a risky one. Partner with an agent who understands the local market and knows how to guide foreigners through the process.
Start by asking the important questions:
- What kind of ownership is best for me?
- What’s my realistic budget after fees and taxes?
- How can I make sure this villa is a safe investment?
Because the more informed you are, the more confident you’ll feel making your move.
