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Frequently asked questions
Is it safe to buy in Indonesia?
Legally, real estate purchases are notarized by a public notary (PPAT) and recorded with the Indonesian Ministry of Law. Under the Indonesian Civil Code, owner rights are protected in the event of death or bankruptcy of the lessor or in the event of a sale of the freehold land. In these cases, the lease will continue for its full duration.
However, like any investment, real estate investments are subject to various risks, and you should always act carefully, do your own research and due diligence (see our free guide).
What is the difference between Leasehold and Freehold?
One of the main things to consider when thinking about investing in a property is its ownership status.
Under Indonesian law, foreigners are not permitted to own freehold land (“Hak Milik” title).
However, Foreign individuals may legally enter into leasehold agreements. Investors own the rights of the lease for the duration paid and have the right to sell the remaining years left of the lease and transfer the lease title via inheritance.
Why buying a Leasehold then?
In general, leases are negotiated for 25 years to 30 years. It is also possible to add in the agreement an extension clause. Do you really want to keep a house for more than 30 years?
In addition, leasehold agreements are cheaper than freehold ones, so you will spend less money upfront and your return on investment will be, in most cases, faster.
Finally, over 90% of the market transactions concern leasehold titles. There are thus more options to choose from.
I want to invest in Bali, where should I start?
There are a few things to consider first:
- Why do you want to invest: For a passive income? To live there? To buy and sell quickly?
- What is your budget?
- In which area do you wish to find a property or land?
- Do you want to buy land then build or find an existing property?
Once this is clear, do your market research, talk to professionals, and always double-check what people tell you!
Bali, and Indonesia in general, offer great investment opportunities, you just need to be careful, as with any type of investment.
Where should I buy?
It is a difficult question to answer as it will depend on many factors: your preference, the goal of your investment, the desired return, the size of the land of the construction…
The four more popular area in Bali are Seminyak, Canggu, Ubud and the Bukit (Nusa Dua and Uluwatu). It is a good place to start. But popular does not necessarily mean good investment. Be open to opportunities (why not have a look at Nusa Penida for instance) and do your due diligence.
Should I build or buy an existing property?
Pros of buying:
- Ready to use or receiving a passive income
- No hassle with the construction that can take 8 months or more
- Location: In popular areas, there might be a shortage of land, not properties
Pros of building:
- It can be cheaper if built properly. In some cases, your newly built property will appreciate by 50%+ once in the market.
- Personalization: you can design your house
- Meet current standards and market trends
What about the surrounding Islands?
While Bali is the most Indonesian renowned Islands, there are other locations that Investors should keep on their radar:
- Lombok: with the newly built Mandalika Moto GP track, Lombok might attract more and more tourists in the future.
- Nusa Lembongan: at only 30 minutes from Bali by boat, the Island offers a stunning experience, with a blue lagoon, a mangrove forest, one of the most Instagrammable virgin beaches of Indonesia, and some world-renowned surf and diving spots.
- Nusa Penida: with its white sandy beaches, vast expanses of translucent water with spectacular diving, breath-taking clifftop scenery and sweeping sea views, Nusa Penida’s future looks bright!
Why should I invest in Bali?
Bali is well known for its amazing diversity of landscapes and sightseeing, beautiful panoramas, colorful ceremonies, white and black sand beaches, and one of the most exciting nightlife in the world.
In 2021, Bali was the:
- #1 TripAdvisor’s travelers’ choice Award
- #1 Preferred remote working destination in Asia
Before the pandemic, the number of visitors increased by 11% a year, and the Island of the Gods is well positioned to welcome new types of travelers in the future (digital nomads and remote workers, crypto investors, the growing Indonesia middle class, or the retired tourists from the West.
What differentiates you from the other agencies?
First, you should always do your research before partnering with someone. There are great professionals in Bali, as well as crooks. Regarding Emas Estate, we believe we have a few competitive advantages:
- A diverse team (MBA, sales, finance, construction, legal) that can help you through the entire search and purchase process
- A strong understanding of the market thanks to years of experience developing projects in Bali
- We position ourselves as a premium boutique real estate agency, for clients looking for quality over quantity, transparency over questionable practices.
Who are you?
We are a small international team with various backgrounds (MBA, construction, sales…), passionate about real estate and hospitality.
We invested in real estate assets, raised funds, and developed our own projects in Bali. We understand the market and how to avoid making a bad investment.
We believe in transparency, trust, and hard work, to make our dreams, and yours, come true.
How can you help?
Investing in Bali can be stressful and a bit scary.
This is why we accompany you during the entire search and purchase process: from finding a piece of land or property, to the negotiation phase with local owners and to the due diligence (check the financials behind your investment, legal check, quality of the soil, and/or of the construction…).
Why should I trust you?
Our reputation means everything. You can find our profiles on the About Us page. We don’t hide and we want to be kept accountable for our actions.
We personally purchased lands, built villas, raised funds for a hospitality project for years in Bali. We faced everything you can imagine with real estate projects in Bali.
We are happy to share our learnings with you. Our success depends on yours.