Frequently Asked Question
a. First thing first, it’s free!
A real estate agent’s commission is most of the time paid for by the owner/seller and not the buyer.
b. Knows what to look for when viewing properties.
There are certain red flags to look for when buying a property, many of which you may not be aware of, especially identifying potential problems within the property.
c. Market knowledge
Real estate markets can differ from area to area and even neighborhood to neighborhood. It’s extremely important when buying a property that you understand the local market, property values and how to compare properties. It’s helpful even when the time comes to make an offer.
d. Coordinate showings
It can be tricky and something that gets confusing. A real estate agent is also responsible to coordinating a large number of showings in several different area at a variety of different times.
However, Teal Estate is now taking it one step further by providing full property tour with cutting-edge technology that you can access anytime, anywhere using 360 Virtual Tour. Check it here: https://tealestate.co/virtual-tour/
e. Negotiation experience
Real estate deals have many moving parts. When it comes time to negotiate, you will want a neutral, third party advocate in your corner. Even if negotiation tactics are a strength of yours, it helps to have an understanding of the current market standards to know what you should be requesting from the owner/seller.
f. Paperwork management
A real estate agent can help you gather, prepare, and understand all of the documentation that is required to buy your property.
To begin your property search in Bali, it’s important to determine your purpose – whether you’re buying for investment, private residence, or vacation home.
For those looking for a family-friendly neighborhood, consider Umalas or Canggu with their numerous amenities.
Sanur is a great option for retirement, while Ubud offers tranquility and nature. For breathtaking views, Uluwatu or Bingin are ideal, especially for surfers.
Seminyak, Canggu, or Pererenan are great investment options with highly profitable villa rentals. For a balanced combination of living and investing, Canggu is the perfect neighborhood.
Consider the highly recommended areas of North Pererenan (Tumbak Bayuh) and Munggu-Seseh-Cemagi for more affordable options, yet become high demanded areas in the current market.
In short, you can’t.
However, foreigners can acquire a leasehold title (Hak Sewa) to land or building for a defined period of time. This title can be held in your own personal name and is 100% legal and protected by the Indonesian law. Before the lease terms end, you may also have the choice for another extension and pay land value only.
There’s also only one way for foreigners to securely own property in Indonesia outright by setting up a foreign-owned company (PT PMA) and acquire the ‘Right to Build’ (Hak Guna Bangunan) certificate. Your property will then be under your company’s name legally, and considered as the company’s asset.
Tl;dr yes, you can, however we don’t recommend it.
Besides it is not easy, the interest rates are so high (around 15% and up). We recommend to buy off-plan property instead. The payment installment is available during the construction progress, which usually within 10-14 months.
- Attractive destination and climate
- Growing economy and infrastructure
- Favorable investment policies & regulations
- Strong rental demand
- Huge digital nomad hub & community
- Real estate market in Bali is stable with a good Return on Investment (averaging 8-12% ROI)
Yes!
Not only they are cheaper compared to freehold properties (therefore higher ROI), nowadays there are also many attractive options for leasehold properties offering up-to-date design & style considering aspects of sustainability and quality building structure.
Also, you may extend at the land value only in future market price. Make sure if you point out the extension on your lease agreement.
Yes, it is safe.
The most important key points are:
- Be sure to do your due diligence.
- Work with reputable developers/companies to minimize any potential risks.
Guarantees of off-plan property may vary, but common ones include:
- Completion date
- Quality of construction
- Title guarantee
It’s important to review the sales and purchase agreement in details before buying an off-plan property.
Whether your villa is available for leasehold or freehold sale, we are happy to list yours on our platforms!
You may submit your villa here and our listing manager will be in touch with you to arrange the content creation.
Our 360 Virtual Tour is free of charge! It’s one kind of our unique approach we bring to the real estate in Bali, and as additional tools for marketing promotions to reach your potential buyers worldwide 😉
Determining the market value can be challenging, especially if you haven’t aware enough and putting an eye about the current Bali real estate market.
There are several factors, including:
- Location
- Property condition and furnishing
- Property size and style
- Number of bedrooms
- Current demand in the area
- Lease length and terms (for leasehold)
To determine a fair market price, it is recommended to consult to three different agents and average their suggested prices. They can provide valuable insights on similar properties.
Additionally, you can use the prices of similar properties in the area or neighbourhood as a benchmark.
The main difference is
Yes, you must have a valid stay permit to buy a villa with a right to use certificate.
Actually, there are two kinds of stay permits for foreigners, the limited stay permit (KITAS) and the permanent stay permit (KITAP).
- Notary fee
- Lawyer fee (if needed)
- Stamp duty
- Land and building tax
- Maintenance and repair costs (if needed)
Notary fee can differ depending on the property value and the type of services you require. Generally, in Indonesia, the notary fee is calculated as a percentage of the property value, usually around 1%.
It’s worth noting that all other charges are typically included in the villa’s price.
For a Freehold (Hak Milik)
The buyer → Land and building acquisition duty (BPHTB) = 5% of NJOP value (government assessment)
The seller → PPh income tax = 2.5% of NJOP (government assessment)
For a Leasehold (Hak Sewa)
The buyer → No Tax implications
The seller → Final income tax of 10% (Indonesian nationals or KITAS / KITAP holders) or 20% (foreigners without KITAS / KITAP)
By law, you need to operate under a company. If you operate privately, means you breach tax and immigration laws. If you operate under a local, then you are liable for double taxation. The best and most transparent way is to set up a company (PT PMA).
No, unless it is specifically written into an agreement. It’s worth remembering the Pondok Wisata is a permit that only Indonesians can hold. Foreigners cannot have a Pondok Wisata. A company however, can hold other types of permits and can operate a villa that’s already been issued with a Pondok Wisata permit.