Tips for Buying a House in Bali to Avoid Regrets

Tips for Buying a House in Bali to Avoid Regrets

Bali is a favorite destination for both tourism and living. Many people dream of owning a home on the Island of the Gods, whether for personal residence, investment, or rental. However, buying a house in Bali shouldn't be rushed. Mistakes can lead to financial losses and legal issues. To avoid future regrets, here are some effective tips for buying a house in Bali:

1. Ensure the Land's Status and Legality

The most important thing is to check the land certificate. In Bali, many plots of land or houses are still held under customary rights or lack clear land titles. Ensure the house you buy has a valid Freehold Title (SHM) or Building Use Rights (HGB) certificate. Foreigners can usually only purchase with an HGB, Right of Use (Hak Pakai), or through a business entity (PT PMA).

2. Examine Location and Accessibility

Location determines property value. Choose an area that suits your needs, for example, near the beach for a villa investment, or near public facilities for a residence. Don't forget to check road access, environmental conditions, and the area's development potential.

3. Pay Attention to Customary and Environmental Regulations

In Bali, customs and culture are highly respected. Some locations have specific regulations regarding the construction or use of houses. Be sure to respect local customs to avoid conflicts with the surrounding community.

4. Calculate Additional Costs Carefully

Besides the house price, there are other costs to consider, such as taxes, notary fees, renovations, and permits. If the house will be used for business, such as a homestay or villa, you also need to prepare for operational costs.

5. Buy from a Trusted Seller or Developer

Avoid buying a house from an unknown party. Use a reputable property agent or developer, and check their track record first. This will help avoid fraud or problems later on.

6. Align with Your Purchase Purpose

Determine from the outset whether the house will be used as a personal residence, vacation spot, or investment. This will make it easier to choose the location, building type, and develop a financial strategy.

7. Use an experienced notary/PAT

For a safer transaction, use an experienced notary or Land Deed Official (PPAT) in Bali. They can help ensure all documents and the purchase process are legally compliant.

Buying a house in Bali can be a profitable investment and a dream come true. However, ensure you pay attention to all legal, location, and customary regulations. With thorough research and professional guidance, you can own a home in Bali without regrets.