Thinking about investing in Bali real estate but don’t know where to start?
It’s easy to get overwhelmed by all the legal jargon—leasehold, freehold, zoning laws, nominee structures…
But before you dive into contracts and regulations, you need a solid foundation.
Successful foreign property investors in Bali don’t just buy a villa—they make informed decisions that set them up for high returns and long-term success.
So, before you dive into legalities, here’s a simple checklist to guide your first steps and help you confidently kickstart your property investment journey.
1. Know Exactly Why You’re Investing
First thing, why do you want to buy property in Bali?
Are you looking for steady rental income from an Airbnb or long-term tenants?
Do you want a vacation home you can rent out when you’re not using it?
Or are you hoping to flip the property later and sell it for profit?
Each investment type has a different strategy, and knowing your why will save you a ton of time, money, and frustration.
- If your goal is rental income, you need a villa in a high-demand area with great occupancy rates.
- If you’re buying a personal retreat, you might prefer a quieter, less touristy area.
- If you plan to sell in the future, you’ll want a location with high appreciation potential.
One of the biggest mistakes investors make is buying a villa they love without considering the numbers.
If you’re treating this as an investment, the financials matter more than personal preference.
Related article: Stay Away From These 8 Costly Mistakes When Buying Property in Bali.
2. Set a Budget
How much do you need to invest in Bali real estate?
Most first-time buyers look at the listing price and think that’s it. But the reality is, there are other costs to consider.
So, what’s the full cost of buying a villa in Bali?
- Property Price – Your biggest upfront cost.
- Legal & Due Diligence Fees – This covers legal checks, contracts, and government permits.
- Property Taxes & Permits – These can vary depending on your ownership structure.
- Villa Management & Maintenance – If you plan to rent it out, you’ll need cleaners, repairs, and possibly a management company.
- Currency Exchange & Banking Fees – If you’re transferring large amounts from overseas, expect some bank fees.
To avoid surprises, set aside an additional 10 to 15 percent on top of the property price for these extra costs.
Related article: Cost of Property in Bali: What You Need to Know.
3. Pick the Right Location for Your Investment Goals
You’ve probably heard people say “location is everything”—and it’s 100% true when it comes to buying property in Bali.
But ultimately the right location depends on your investment type. Let’s break it down:
- Canggu & Seminyak – Tourist hotspots, perfect for short-term Airbnb rentals.
- Uluwatu & Bingin – Luxury surf villas, attract high-end travelers.
- Sanur & Nusa Dua – Great for families and retirees, long-term rental potential.
- Ubud – Wellness retreats, digital nomads, cultural tourism.
- Kedungu & Pererenan – Emerging areas, great for long-term appreciation.
If your goal is rental income, research occupancy rates and average nightly rates before committing to a location.
Find out where to invest for your investment goals on 10 Best Areas to Invest in Bali Real Estate 2025.
4. Research the Market (So You Don’t Overpay!)
Would you buy a car without checking the price of similar models? Of course not.
It’s the same thing with buying a property in Bali.
Too many first-time buyers overpay simply because they don’t research the market. But where do you start?
The trick is to discover:
- Rental occupancy rates – Some areas rent out more consistently than others.
- Average rental yields – What’s the return on investment (ROI) in your chosen area?
- Recent property sales – Are prices rising or stagnating?
The reality is, some areas will give you better returns than others. Always take the time to evaluate market trends before making a purchase.
If that sounds like a lot of work, the next tip could give you the answer.
5. Work With the Right People
If you plan to buy a villa in Bali, you probably know it’s not like buying property back home.
That’s why if you don’t know the right people, you could waste money, deal with shady agents, or buy a property with legal issues.
So, who do you need on your team?
- A trusted real estate agent – Someone who understands foreign ownership.
- Other foreign investors – Learn from people who’ve already bought property in Bali.
- A property manager – If you plan to rent it out, a good manager is a game-changer.
Take your time to build the right team. Call local agents, ask the right questions.
And if you need someone with over 14 years of experience in Bali’s property scene, our team is here to help.
6. Understand the Buying Process
Before even thinking about ownership structures, get familiar with how buying property in Bali works.
- How long does it take to buy a villa in Bali?
- What steps should you take before signing anything?
- What’s a red flag when dealing with sellers or agents?
Many first-time buyers get caught up in excitement and overlook key steps like due diligence and verifying ownership.
This can lead to legal problems down the road.
Talk to the local agent, learn how real estate transactions work in Bali, and make informed decisions.
7. Have an Exit Strategy
Imagine you’re in a racing competition. You keep running and running—but there’s no finish line.
That’s exactly what happens when you buy property without an exit strategy.
Life is unpredictable. Having an exit plan doesn’t just give you flexibility if you decide to relocate, cash out, or reinvest elsewhere…
It also ensures your investment pays off when the time comes.
Smart investors plan their exit strategy before they even buy—so they can sell at the right time for the best return.
For detailed information about exit strategies, check out our complete guide here.
Your First Steps to a Smart Investment
So there you have it!
This checklist doesn’t cover the legal details—yet. But it gives you a solid foundation for making informed decisions.
By following these steps, you’re already on your way to investing in Bali… And you have a clear vision of what you want from your investment.
Once you’re ready to move forward:
- Tick off each point
- Take some notes
Most importantly—you’ll know what you want, where to buy, and how to invest wisely.And if you have more questions, our team is ready to help. Message us anytime or you can book your FREE 10-minute consultation with our senior advisor below
