Owning a property can have many benefits. Anything from becoming direct inhabitants in it to using it as a business venture. Engagement in the market means keeping in mind regulations and concerns rotating around the ownership of the property and the regulation of its use. In some countries, the ownership rules can be quite different, which is what we are looking into here with Bali.
Why would you want to buy a property in Bali?
Bali is a beautiful place to travel and holiday in. Its beautiful landscapes attract a myriad of people to this location throughout the years. However, buying a property is a whole different thing. Let’s look at the reasons why one should consider purchasing a property there.
The first one would be the reasonable pricing, at least in North Bali. The prices can be a deciding factor for some because purchasing a property like this is simply an engagement that requires quite a bit of fund.
The natural wonders of Bali are a considerably attractive part of purchasing a property there. Natural attractions are many, usually starting with beautiful and dramatic sceneries. The beautiful vistas are an ever-present reason to consider purchasing a property here but there’s more. The beautiful beaches and coral reefs near them are places you can frequently enjoy.
The culture and cuisine of Bali are yet another part of these lands one could enjoy. The advantage of both is that it allows more people to find something to do in Bali.
The property market of Bali
The advantage of Bali’s property market is that it has been proving very good in terms of performance. It’s one of the top-performing property markets in all of Asia in fact. The luxury property had spiked in price before, reaching a 15% increase yearly. It wasn’t much different with vacant lots, leading to a ton of speedy price increases.
However, these days the prices have started to stagnate. The usual huge increases have stopped and the market is pretty motionless right now.
Why did the market stagnate?
Despite the beautiful sights and great bumps in price, the market ran into some issues. These problems were primarily issues that the residents of Bali struggle with daily. While the problems aren’t insurmountable, they do impact the engagement of the market.
The first issue has always been local infrastructure. The streets are frequently jammed with hundreds of people and crowds that form are difficult to get through. This makes any form of traversal infinitely more difficult and as such detrimental to the enjoyment of the tourist experience. Anybody who comes over for a few days in Bali will have to deal with these issues and may end up being unable to fulfill all of their plans for the trip because of it.
However, a much bigger issue of Bali’s infrastructure comes from its lack of clean water. Any tourist and inhabitant need water to operate. A lack of clean water can easily turn an enjoyable trip to Bali into a struggle to fulfill our basic needs.
The next issue comes from the market itself. You see, the property market in Bali wasn’t that well regulated, leading to a lot of iffy and incompatible sales throughout its lifespan. The rising prices we mentioned before stemmed from a constant increase in properties which has now come back to cause issues. The oversupply being the most present problem, considering how many properties were made available during the boom of the market.
Buying property
The best way to obtain ownership is by getting a freehold title. Purchasing this title allows you to directly witness the increase in the price of a property as time goes on. Any increases to the price of land as well as benefits of improvements that you’ve constructed will directly impact the price of your property too.
A Freehold title is the most potent title you can get when it comes to land ownership in this area. However, it’s impossible to obtain it if you aren’t Indonesian. You have to be of Indonesian Nationality to get a Freehold title, otherwise, it’s unattainable for you. Of course, there are ways to circumvent this somewhat. Foreigners can get a right of use for a property by entering contracts with owners from Indonesia. These contracts can be achieved through an Indonesian corporation or a single person, these being the owners of the title themselves.
The properties with this title often get better use out of an increase in appreciation of the land. The contract also allows you to establish much better terms with the person you are signing it with, leading to some boons. Another option for acquiring property is usually leasehold. These types of acquisitions come with a time period during which you can utilize the property. Usually, you won’t benefit as much from land appreciation and your property may even lose some of its lusters as the expiry date draws near.
The choice of freehold title usually comes with a lot of safety concerns. There are many ways in which you could end up swindled so caution is advised. The advantages this title brings are usually worth the struggle.
On the other hand, a leasehold property is very safe although with some limitations on its use. The freehold title will allow you to heavily modify the property, unlike this one. As we’ve mentioned already, this also makes it hard to get used to price appreciation.
Conclusion
Purchasing property in Bali will bring with it a few concerns. These concerns can be rather problematic depending on the way you wish to employ and engage with the property you are scouting. That’s why informing yourself further is always a good goal and the reason a ton of fruitful sources of information, including this one, exist.
The Bali market is a weird one to get into as you’ll need to achieve contact with somebody who already has ownership of a property in Bali. That somebody will have to be a Bali citizen due to their laws and the other new regulations don’t make the experience much easier too.
However, once all that has been done you’ll have a very impressive experience to engage in with the slew of possible uses one can get out of a property in Bali. Especially one backed up with a good contract.