As Marshall Field said,
“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.”
Investing in real estate is a proven path to building wealth. But it’s not without challenges—especially when buying overseas, like in Bali.
Many first-time investors stumble into common mistakes that lead to unnecessary setbacks—or even losses.
That’s why, in this article, we’ll explore the 13 most common real estate investing mistakes—and, more importantly, how you can avoid them.
1. Not Having a Plan
Imagine setting sail without a map—you wouldn’t know where to go or how to reach your destination.
Investing in real estate without a plan is just as risky.
A strategy is your compass.
Are you buying for rental income or to flip for profit? Each approach requires a different mindset.
For steady, passive income, focus on high-demand rental areas. In Bali, Canggu offers great returns but comes with higher prices and competition.
If you prefer renovation projects, look for properties with value-adding potential.
Clarifying your goal will guide your investment choices.
2. Letting Emotions Drive Your Decision
It’s easy to fall in love with a property—the charm, the location, the idea of owning it. But seasoned investors think differently.
They don’t let emotions take over. They focus on the numbers.
Before buying, ask yourself: “Does the price make sense for what this property can deliver?”
If the numbers don’t add up, walk away.
Smart investors research comparable properties, analyze supply and demand, and negotiate confidently. They also get professional guidance and request a valuation.
The best deals aren’t about emotions—they’re about making the numbers work. If it doesn’t fit your financial plan, be prepared to walk away.
3. Not Doing Enough Research
This mistake ties back to not having a plan—without a clear strategy, you won’t know what to research or why it matters.
A property might look stunning, but what about the neighborhood? Is it filled with tourists, long-term renters, or digital nomads?
Your research should match your investment goal:
- Flipping? Focus on areas with rising values and strong renovation ROI.
- Rental income? Look for steady demand and reliable infrastructure.
Without proper research, it’s easy to fall for hype or promises of “the next big thing.”
Instead, target emerging areas with real rental demand—like Pererenan and Kedungu, where interest from renters and investors is growing.
4. Waiting for the “Perfect” Market
A lot of people argue, “Wait for lower interest rates to buy property.”
While that sounds logical, it’s not the whole picture.
The truth? The best time to buy is when you’re financially ready, not when the market seems perfect.
Here’s why…
Even when interest rates are high, you gain some unexpected advantages.
- There’s less competition—so you’re more likely to find motivated sellers who are open to negotiation.
- Plenty of time to carefully research, evaluate options, and secure a great deal while others are waiting on the sidelines.
Instead of chasing the “perfect market,” focus on value:
- Identify well-located properties or quality assets in areas with growth potential.
- Stay flexible with locations. Sometimes the best opportunities are just outside the main hotspots.
After all, it’s not about finding the “perfect market situation”; it’s securing the best asset for your budget and long-term success.
5. Ignoring Ongoing Costs
Buying a property isn’t just about the purchase price—there are ongoing costs like maintenance, taxes, and repairs that can add up if you’re not prepared.
This isn’t meant to scare you—it’s about making informed decisions.
If you’re buying overseas, understanding these costs gives you confidence and helps you plan. Some key expenses include:
- Legal fees, taxes, and permits
- Maintenance and repairs (varies by size, location, and lease period)
It’s not just about buying the property—it’s about maintaining it and ensuring it generates long-term value. For a full breakdown of costs, check out our recent post on How Much to Buy a Villa in Bali.
6. Misunderstanding Location Value
The golden rule of real estate? “Location, location, location.”
But it’s not just about being close to the beach—it’s about what drives demand.
- Properties near good schools attract families willing to pay a premium.
- Homes near tourist hotspots perform well for short-term rentals.
- In Bali, digital nomads seek private office spaces, while eco-friendly homes are rising in demand.
Understanding these trends helps you align your investment with the right market—whether it’s families, tourists, or remote workers.
7. Skipping Due Diligence
A property might look perfect on the surface—but looks can be deceiving.
That’s why due diligence is critical. In Bali, this 1-2 week process ensures the property meets your expectations and is legally sound.
Here’s what it includes:
- Verifying ownership – Confirm the property is legitimately for sale.
- Checking the land title – Ensure it matches your intended use (residential or commercial).
- Confirming zoning – Make sure you can build a rental villa or operate a business.
We get it—you want to enjoy your investment without drowning in paperwork.
That’s why at Bali Villa Realty, we’ve done all of the due diligence process along with trusted legal and construction experts to ensure every aspect of your property is thoroughly examined.
8. Expecting Quick Wins
Real estate is often seen as an easy path to wealth.
Maybe you’ve heard stories of quick returns—and it sounds tempting. But the truth? Real success takes time, effort, and patience.
It’s normal to feel frustrated if your rental isn’t fully booked right away or property values don’t rise as fast as you hoped.
Instead of chasing quick gains, stick to your plan:
- Choose a well-located property.
- Manage your finances carefully.
- Stay patient with the process.
Wealth in real estate isn’t built overnight—it’s about laying a solid foundation for long-term success.
9. Neglecting Property Management
Owning a property isn’t just about buying it—it’s about maintaining it and maximizing income.
Without proper management, you risk losing rental income, costly repairs, and bad guest experiences.
That said, hiring a property manager isn’t always necessary.
- If you live in Bali and can handle bookings, maintenance, and guest communication, you might manage it yourself.
- However, for overseas owners, a property manager is essential.
A well-managed property protects your investment, saves time, and reduces stress.
Related article: Managing Your Bali Investment Property from Abroad: Expert Tips.
10. Unrealistic Expectations
Many investors have unrealistic expectations about how quickly they’ll see returns.
Real estate investments take time to appreciate and generate rental income. If you expect fast returns, you may make rushed decisions that could hurt your investment.
Patience is key—whether looking for high occupancy rates in a rental property or waiting for market appreciation.
11. Not Hiring Professionals
We always think that we can do anything without others’ help.
However, even seasoned investors rely on professionals for advice and support.
Thinking you can handle everything alone is a major real estate mistake.
Whether it’s a lawyer to help with legal issues, a real estate agent with local expertise, or a contractor to oversee renovations, having professionals in your corner can save you time, money, and frustration.
Don’t try to cut corners by skipping out on expert help.
12. Trusting the Nominee System as a “Quick Fix”
If someone tells you, “Just use a local nominee—it’s faster and cheaper,” be careful.
The nominee system—where a local holds the property title on your behalf—isn’t legally secure. You don’t have real control, and if things go wrong, you could lose everything.
Many foreigners have trusted the wrong person and ended up with nothing.
It may seem like a shortcut, but it’s a risky one.
If you want real protection, go with legal structures like PT PMA or leasehold agreements with clear terms.
A quick fix now can cost you your entire investment later.
Also read: Why the Nominee Agreement Is a Risky Bet.
13. Not Doing Due Diligence on Legal Aspects
Real estate laws can be complicated, particularly for foreign investors in Bali.
Failing to understand the legalities of property ownership or not securing clear titles can lead to costly legal battles.
Always work with a qualified real estate lawyer to ensure all your paperwork is in order.
Also read Freehold vs Leasehold: Which Ownership Type is Right for You?
Avoid These Real Estate Investing Mistakes for Long-Term Success
Real estate investing mistakes can be costly, but understanding these common pitfalls can help you make smarter decisions and build a profitable portfolio.
Whether investing in Bali or elsewhere, avoid these missteps, and you’ll be on your way to a successful real estate journey.
Planning, researching, and working with the right professionals are key to a great investment.
If you’re ready, our senior advisors offer a free 10-minute consultation to help you decide whether investing in Bali is right for you and create a free investment plan tailored to your needs and budget.
There is no sales pitching or commitment, just pure information.
If that is something you like, click the link below and get your personalized investment plan now.
