A few weeks ago, our clients asked whether this year could be the right time to invest in property in Bali…
And it’s a great question…
Most foreign investors who want to invest in Bali must comply with laws and regulations that differ from those in their home country.
Not to mention, foreigners cannot borrow money in Indonesian banks unless they have foreign-owned businesses in Bali…
But that even comes with higher costs.
If you’re a serious investor ready to invest in Bali, 2024 is a great year.
I know it seems biased…
But hear me out first. Bali’s property market is crazy at the moment.
Most property investors are looking for where to invest.
They face high taxes and mortgage rates in their home country, making it impossible to retire before age 70.
Then Bali shed light on folks who want to invest in real estate with lower-entry costs… and can see a steady income stream and financial stability.
But if you’re still skeptical whether Bali is the right place to invest…
These six surprising reasons could help you decide.
1. The 2nd most visited destination worldwide (after Dubai)
Thus, your property generates a high return on investment (ROI) and gets more than 65% occupancy rates…
Even more than 83% rates in the hottest locations in Bali, like Canggu and Seminyak.
Since you want to maximize ROI, you should look for the right property in the premium locations with the highest visitors.
The hottest market is still in Canggu because of its beautiful beaches, great cafes, and beach clubs.
But don’t take my word for it. Here’s the data on what returns in Canggu can give you…
Source: Demand for properties in Canggu
With occupancy rate up to 91% every year…
Source: Occupancy rate for villa in Bali
2. Easy and simple transaction
You don’t have to know everything about investing in Bali, not even the legal and complex information about taxes…
I didn’t say it’s unnecessary, but that could be your last worry.
The first thing is knowing what and how to invest…
And that’s where working with a trusted local property expert in Bali comes in to help.
Because of Bali’s booming market, more property experts are finding a way to help you secure your first investment in Bali.
As we’re doing at Bali Villa Realty, we give you a guide and plans after purchasing and help you navigate your safe first investment in Bali…
You won’t have to waste time researching and confusing yourself with contradictory information.
3. Strong economic growth
Strong economic growth Indonesia, including the island of Bali, is considered one of the most promising developing countries with strong economic growth.
Despite the global challenges posed by the COVID-19 pandemic, Indonesia has shown resilience and is projected to maintain a steady growth rate in the coming years.
This growth is driven by several factors, including a large domestic market, increasing foreign direct investment, and the government’s focus on infrastructure development and economic reforms.
As one of Indonesia’s most popular tourist destinations, Bali has seen significant infrastructure improvements in recent years.
Some notable projects include a new international hospital, a cruise ship port, a Formula 1 track, road development, and more.
These developments will contribute to the island’s long-term economic growth and land value appreciation.
4. Potential Areas for Investment
While Canggu remains a hot market due to its beautiful beaches, great cafes, and beach clubs, other areas are also worth considering.
Locations like Cemagi, Nyanyi, and Bingin offer relatively lower-cost investment opportunities than more established areas.
These areas are now seeing the popularity of first-time buyers for their property investment due to their lower initial investment.
It is important to research and consider the unique characteristics of each location before making a decision.
5. Ease of doing business
Bali is a great place to buy property because doing business there is easier.
Over the past decade, the Indonesian government has made it simpler for people to invest in the country. They’ve done this by making new rules and policies that help investors.
So, what does this mean for property investors?
Well, as more people visit Bali and it becomes easier to do business there, the property value is likely to increase.
When you buy property in a growing and popular area, you may be able to sell it for more money later or rent it out to tourists for a nice profit.
Imagine you buy a house or an apartment in Bali today. In a few years, as more people want to visit or live there, you might be able to sell that property for a higher price than what you paid.
Or, you could rent it out to tourists looking for a place to stay during their vacation.
6. Ease policies for foreign property investors
The Indonesian government has made investing in Indonesia easier for foreign property investors.
They want to encourage businesses and create more jobs for people in Indonesia. Here are some ways they have made it easier:
- Omnibus Law on Job Creation:
The Omnibus Law introduces provisions to simplify business licensing requirements, reform rigid labor laws, and establish the Indonesian Investment Authority (INA) to facilitate direct investment.
It also allows foreign investors to invest in technology-based startups in special economic zones with lower capital requirements.
- Investment Positive List:
The Investment Positive List, issued through Presidential Regulation No. 10 of 2021, replaces the previous Negative List.
This list eases restrictions on foreign investment activities and clarifies sectors open to foreign investors.
- Online Single Submission (OSS) System:
The OSS system simplifies the business permission process through a one-stop web-based business registry platform.
It aims to streamline procedures and reduce bureaucratic hurdles for investors.
- Investment Incentives:
The Indonesian government offers numerous investment-related business incentives to attract foreign investors.
These incentives include tax incentives, which are considered one of the most important and attractive features of the Indonesian business landscape.
Remember, there may still be specific rules for different business sectors. Foreign investors should do research and understand the rules before investing.
Conclusion
Bali’s market is booming, and it’s the perfect time to invest.
Foreign investors face different rules and challenges when buying property in Bali.
But that’s okay. These rules help protect the market and make it stable.
I won’t go into all the details about how these rules work or whether they are best for everyone. You can check for more information here.
The most important thing to know is that Bali’s property market is growing fast.
And it’s doing so right now.
Investors might wish for lower costs and easier processes. That’s not happening overnight. The market will slowly adapt, just like it did with new growth.
But the demand for real estate in Bali will keep climbing… and smart investors will jump in at the right time.
That time is now. The market is still open for new investors.
Now is your chance to invest in Bali before it’s too late.
