How to choose a liquid property in Bali?

Bali is not just about surfing and beautiful nature. Today, the island is one of the most attractive places in the world for investment. 

Every year the popularity of Bali grows: international companies come here with projects, and investors invest in real estate and get the highest returns in the world.

Stable economic growth creates a solid environment for investors:

Land and real estate prices may rise in the next couple of years due to the increasing flow of tourists, land scarcity and large-scale construction projects that will attract travelers from all corners of the planet.

Therefore, now is the best time to buy real estate on the island. In order to make the purchase process the most profitable for you, it is important to understand the peculiarities and specifics of the location.

The process of purchasing real estate in Bali involves several key steps:

Step 1: Selecting a location and property according to your investment strategy

Every investor has different financial goals, whether it is long-term capital growth, generating passive rental income or diversifying assets. It is important that the property chosen is in line with these goals.

Step 2: Create a financial model

Many real estate developers promise high returns, but often these projections do not reflect reality. Usually outdated or averaged data is used that does not take into account the specifics of particular properties and neighborhoods.

We at Legion Real Estate take a different approach: thanks to our unique IT service, we collect up-to-date data on profitability, return on investment, occupancy and average property value in different regions of Bali. This allows us to find properties for our clients with maximum profitability.

Step 3: Legal Due Diligence (Due Diligence)

Before signing the contract, it is important to:

- Analyze the land documents and check the accuracy of the certificates.

- Verify in which zone the building to be constructed is located.

- Check if all taxes have been paid by the previous owner and if there are no disputes over the land on which the building is being constructed.

Step 4: Signing the booking contract

At this stage, the object, price and installment terms are fixed, and a deposit is paid. The deposit is usually $2,000 or more, depending on the developer and the project. Most often these funds are non-refundable, so it is worth considering everything carefully before booking.

The standard booking period is 2 weeks, during which time the documents must be signed and the first payment made. The contract is signed electronically, which avoids the need for personal presence.

Step 5: Receiving the package of documents and signing the contract

After receiving the deposit, the developer prepares a package of documents including:

- Investment agreement.

- Land documents confirming payment of all taxes.

- Documents about the developer and its founders.

All documents are agreed with the buyer and signed electronically as well.

Step 6: Making the first installment and payment of installments

After signing the contract, the developer issues an invoice for payment, usually in the amount of 30-45% of the property value. The buyer then pays the remaining amount according to a set schedule. All payments are made in Indonesian rupiah (the exchange rate to the dollar is approximately 15,000 rupiah).

At this stage, you can apply for a KITAS resident visa and open a local bank account.

Step 7: Registration of rights after the object is put into operation

After the object is put into operation, Leasehold rights are registered at the Land Office, if this is stipulated by the ownership right. All transactions go through a notary.

Obligatory payments at this stage are:

- VAT (Value Added Tax) - 11%.

- Notary fee for registration - 1% of the value of the property.

Then you accept the property by deed and hand it over to the Management Company, which will take care of all the issues of completion and maintenance of your property.

How much can you earn from investment real estate in Bali?

For example, let's take an apartment in Changgu. The area of the apartment is 35 square meters. Cost $90,000.

A residential complex with premium apartments for living and investing in the best tourist location in Bali - Changgu. Instagram pads, the best locations for photos, stylish interiors - that's what will attract tourists.

Developed infrastructure of the complex:

The management company takes care of all complex management, reservations and payments are taken care of by an international company, which is characterized by technology and high level of service.

LEGION REAL ESTATE is the #1 real estate agency in Bali. The company is officially registered on the island, we have a good understanding of the local market, because most of the team lives here.

We invite you for a free consultation: we will answer all your questions in detail, take you on a virtual tour of the island and help you find the right property for your strategy.

With us, you are guaranteed to receive 12% per annum from the rental property and will be confident in the legality of the transaction.