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When buying property in Bali, do you know the right questions to ask?
Whether you are looking to invest in a rental villa or searching for your dream vacation home, asking the right questions can make or break your investment.
Let’s dive into the 8 essential questions every savvy buyer should ask before buying in Bali’s dynamic real estate market.
1. Is the Market Stable?
Before diving in, you need to know how stable Bali’s real estate market is.
Good news—Bali sits within a unique real estate environment.
A 2023 CNBC Indonesia report shows that Indonesia’s property market remains resilient, even as global real estate markets struggle.
Why?
Indonesia’s “old-fashioned” approach shields it from the financial volatility seen in other countries.
Unlike regions that rely on tools like Real Estate Investment Trusts (REITs), Indonesia keeps its property market more localized.
This means fewer ripple effects when other markets experience downturns. If you’re looking for stability, Bali’s got it.
2. What’s the Rental Yield and ROI?
Here’s the deal: buying property isn’t just about owning a slice of paradise; it’s about making it work for you.
Bali boasts some of the world’s highest rental yields, with popular areas like Canggu achieving occupancy rates of over 90%.
Source: Occupancy rate in Canggu (Bukit Vista)
Rental yield measures how much income a property generates annually as a percentage of its purchase price.
A higher yield = more rental income.
ROI (Return on Investment), on the other hand, shows the total profitability of your investment, including property appreciation over time.
With Bali welcoming over 5 million tourists in 2023 and aiming for 13 million in 2024, demand for rentals is surging. More visitors mean more potential for consistent rental income.
3. How’s the Demand?
What’s the rental demand in the area?
High demand means better chances of keeping your villa occupied year-round.
Look for areas with consistent tourist traffic or long-term expats. Ask about peak and off-seasons to gauge how often your property will be rented out.
Bali’s property demand is booming. With around 30,000 expats living on the island and millions of tourists visiting each year, Bali is a hotspot for short- and long-term rentals.
This growing community of tourists and expats creates a steady demand for high-quality properties.
Investing now could position you to benefit from the island’s rising popularity.
Related article: How to Start Your Property Rental Business in Bali: Answering Your Burning Questions.
4. When Was the Villa Built?
Age matters when buying property.
A newer villa might come with modern amenities and fewer maintenance concerns.
But older properties? They often have unique charm and character that can appeal to certain renters or buyers.
Knowing when the villa was built helps set expectations.
New builds mean less hassle upfront, while older properties may need more attention to stay in top shape.
5. How’s the Neighborhood?
Location, location, location!
Ask yourself: Is the villa in a peaceful area? Is it near popular hotspots or the beach? What about amenities like schools, shops, or restaurants?
A great neighborhood isn’t just convenient—it’s a major selling point if you ever decide to resell.
Related Article: 10 Best Areas to Invest in Bali Real Estate.
6. Can I Afford This Property?
Affordability goes beyond the price tag.
Factor in not just the property cost, but also additional expenses like taxes, maintenance, and management fees.
Make sure you’re financially comfortable with these commitments so your dream villa doesn’t turn into a financial burden.
Investing in Bali can be highly lucrative, but it’s not a guaranteed path to riches.
Do your due diligence, thoroughly research the market, and factor in all potential costs and risks.
7. Why Is the Owner Selling?
This question can reveal hidden truths.
Are they selling because the property isn’t performing as expected? Or are they upgrading to something better?
Knowing the owner’s motivation can give you insights into the property’s potential or uncover red flags.
8. Is There Any Major Renovation Needed?
Renovations can turn a good property into a great one—but they can also eat into your profits if you’re unprepared.
Before buying, ask if the villa has undergone any major renovations.
If not, assessing what upgrades or fixes might be needed is essential.
This will help you budget properly and avoid any unpleasant surprises.
Meanwhile, cosmetic changes, such as a fresh coat of paint or new fixtures, can enhance the villa’s appeal without draining your budget.
By weighing these potential costs upfront, you’ll have a clearer picture of the total investment needed to get your property rental-ready.
How to Get Started
Every question you ask shapes your real estate journey in Bali.
By focusing on these critical questions, you’ll lay the groundwork for a successful and profitable investment.
Pro Tip: Bali’s property market is thriving, with visitor numbers on the rise. To navigate this growing market effectively, consider working with a local real estate expert like Bali Villa Realty.
We’ve helped hundreds of foreigners legally buy and build property in Bali based on their personal goals and budgets.
Plus, with 14 years of experience in Bali’s property market, we know what works and what flops. If you’re ready to navigate Bali’s property market and have a legal and risk-free investment, schedule your free, no-obligation session with our senior advisors below.
