Buying property in Bali as an Australian. What you need to know

Bali, with its natural beauty, relaxing resorts and the friendly hospitality is a popular destination for Australians. It’s no wonder that some consider moving there.

If you’re planning to make the transition from living in Australia to Bali, Indonesia, this article can help you understand a little bit more about the property situation. We’re going to take a look at the Balinese property market, what it’s like buying real estate there and a few things to consider when deciding which choices are best for you.

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This article is purely for general information purposes and is not to be taken as financial advice. We recommend that you obtain independent financial advice before making any form of investment.

Can Australians buy property or real estate in Bali?

In the simplest terms, it’s possible for Australians to buy property in Bali. That being said, there’s government legislation restricting what can be owned and by who.

What is reciprocity when it comes to buying property in different countries

Around the world certain countries have reciprocal agreements that give citizens of each nation certain rights in the other. These agreements are often in the form of treaties put in place following negotiations between the two countries.

When it comes to property, Australia doesn’t have a reciprocal agreement with Indonesia. This means that to buy property in Bali, Australians have to follow the rules that generally apply to anyone the Indonesian government considers a foreigner.

What’s the property market like in Bali?

Post pandemic the property market in Bali is booming.¹ Not long after travel restrictions were lifted, visitors began to flock back to the island and the number of property transactions increased. Foreign buyers include investors, remote workers and families looking for new opportunities. Among the areas considered to be most ripe for foreign investment are Seminyak, Canggu, Ubud, and Nusa Dua.

Property prices for Bali

To give you a better idea of how the property prices in Bali compare to the rest of Indonesia, here’s the average price per square metre in a few different locations around the country.²

Location	Price per square metre
Jakarta	IDR 18.3 million
Yogyakarta	IDR 10 million
Bali	IDR 14.5 million
Balikpapan	IDR 8.9 million

As seen on 6 September 2023

For some people, the ideal way to buy property in Bali is to build a new home. What the land is valued at does vary depending on the location.³

Area	Price per square metre
Lovina & Singaraja	IDR 1.4 million
Uluwatu	IDR 1.4 million
Canggu	IDR 3.4 million

As seen on 6 September 2023

How to find property to buy in Bali

To buy a property in Bali you could try looking online first or go directly to an agent.

Property websites in Bali

Checking online property listings can be a good place to start during the early stages of your property search, or if you want to do as much of the process yourself as you can. Here’s a few sites to get you on your way.

• Dot Property
• Bali Realty
• Villas of Bali
• Rumah

Property agents and agencies in Bali

Navigating the property market in a foreign country can be more complicated so it may be a good idea to have a real estate agent at your side. The right agent should know the current market trends and be able to make sure you’re following all of the correct procedures required by the Indonesian government.

To find an agent you can search online for a company or individual who has good reviews, can speak English and Indonesian, and has experience assisting foreign buyers enter the Balinese or Indonesian property market.

How to choose the right property to buy in Bali

There’s a number of things to consider when deciding which Balinese property is the right choice for you.

Property type

Think about the size and style of home you want for the lifestyle you envision. Is an apartment or condominium enough space, or would you prefer a full sized home or villa? Also consider the amenities that are important to you. This could include the number of parking spaces, whether there’s space for a home office, if a balcony or pool are desirable, and what type of cooling system you’d prefer.

Property location

Where a property is located can have a huge impact on the price, lifestyle and social scene. Some areas tend to be more popular with tourists, while others have become a hub for expats and digital nomads. There are villages and towns located along the coast if you prefer the beachy vibe, or head up into the mountains if lush jungle and high altitudes are more to your taste.

New or existing

Something else to consider is whether you want to buy an existing dwelling or build something new. If you decide to build, you’ll then need to look at the pros and cons of becoming part of an existing development, buying something off the plan or trying to build a completely unique home.

Can you get a mortgage in Bali as an Australian

Due to the rules surrounding foreign ownership of Indonesian land, getting a mortgage in Bali is somewhat complicated. There is nothing legally preventing a foreigner from getting a mortgage there, it’s more a matter of finding a bank willing to grant you one.

What are the legal requirements for buying property in Bali as an Australian

There are a few legal requirements Australians need to meet when buying property in Indonesia, but one of the main ones to understand is the types of land titles and certificates under Indonesian property law. ⁴

Here’s some of the titles that may be of interest to you as an Aussie considering moving to Bali.

Hak Milik

Hak Milik (HM) is the right to hold a freehold land title, which gives full land ownership rights. This form of land title is only available to Indonesian nationals, not foreigners.

Hak Guna Bangunan

Hak Guna Bangunan (HGB) is the right to build and own a building on a piece of land. This type of land title does not necessarily mean you own the land, just the building on it, which can be sold and bought. HGB titles are valid for 30 years and can be extended.

It is possible for a foreigner to hold a HBG title by setting up a foreign-owned company in Indonesia. An example of this is a Perseroan Terbatas Penanaman Modal Asing (PT PMA), which is a form of company that allows foreign investors to do business in Indonesia.

Hak Pakai

Hak Pakai (HP) gives someone the right to use a property for residential or commercial properties. Foreigners with permanent residency, and foreign-owned companies are eligible for this type of title, which can be issued by the government or a private entity.

The Hak Pakai is valid for 30 years and can be extended up to 80 years before a new application needs to be made. Like the HGB title, it only applies to the building.

Hak Milik Atas Satuan Rumah Susun

Also known as a strata title, the Hak Milik Atas Satuan Rumah Susun (HMSRS) gives ownership over a unit inside a building. Foreigners with a valid temporary residency permit or permanent residency permit can get one of these titles, but only 49% of the floor space inside the building can be titled to foreigners. The rest is reserved for Indonesian citizens.

Documents needed for buying a property in Bali as an Australian

The documents you’ll need to provide will vary depending on what type of property you’re trying to purchase and under what title. It could include the following.

• A valid residency permit
• A foreign-owned company
• Passport
• Proof of identity
• Proof of income
• Proof of address

What are the taxes and fees usually levied on property purchases in Bali

During the sales process you’ll need to pay a 5% transfer tax to the Indonesian government.⁵

You may also run into fees for these services and applications.

• Setting up a PT PMA
• Obtaining a valid residency permit
• Real estate agent fees
• Public notary fees
• Fees for exchanging AUD to IDR

Steps to take to buy a house in Bali

Here’s a basic overview of the steps to take when buying a home in Bali.⁵

1. Research and decide the location, price point and type of property you want
2. If you’re planning to buy through a PT PMA you’ll need to set one up through the Indonesian Investment Coordinating Board. You can do this yourself or engage an experienced agency.
3. View a shortlist of properties you're interested in
4. Once you’ve selected a property, complete your due diligence and verify that the seller has a Certificate of Property and the Building Approval document
5. Sign a legal purchase agreement in front of an authorised public notary and pay the agreed deposit
6. Pay the transfer taxes
7. Complete the final transfer and sign the buy and sell deeds in front of a public notary. The public notary will then submit the documents to the National Land Agency
8. Receive the licences and certificates for the property as well as the final sale and purchase agreement

Avoiding scams when buying a property in Bali

For many, becoming a victim of a fraud is one of the biggest worries when buying property abroad. Here’s a few tips to remember to help avoid scammers.

• Make sure to have professional help, advice and representation before entering into any deals.
• Don’t hand over a deposit before speaking to the seller and viewing the inside of the property yourself.
• Have a property inspection completed to check for any issues that aren’t immediately evident.
• Due your due diligence on the property to ensure it’s freely available for sale and the people selling the property actually have the legal authority to do so.
• Make sure you thoroughly research any companies you engage to help you, checking that they have positive reviews and a solid reputation.

Wise for sending large amounts

Sending large amounts of money can be frightening and the fees add up fast — but not with the Wise large money transfer service.⁶

Wise is a specialist in sending large amounts overseas, securely. The added bonus is that with a sliding fee scale, the more you send, the more you save. The exchange rate is always based on the mid-market rate, like the one you’d see on Google.

Safety is super important at Wise and it’s regulated wherever it operates. In Australia, it is regulated by the Australian Securities and Investments Commission (ASIC) and holds an Australian Financial Services Licence (AFSL number 513764). On top of this, Wise has dedicated compliance teams and systems working around the clock to keep our customers’ money safe.

You’ll need to keep in mind how much your receiving bank will accept in one transaction, check with them first before making the transfer.

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This article is purely for general information purposes and is not to be taken as financial advice. We recommend that you obtain independent financial advice before making any form of investment.

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Sources:

1. Bukit Vista - A Guide to Bali Property Market Since the Pandemic (2019-2023)
2. Own Property Abroad - How much does it cost to buy a house or villa in Indonesia
3. Own Property Abroad - How much is the land price in Bali?
4. Own Property Abroad - 7 important land titles and certificates for property ownership in Indonesia
5. Own Property Abroad - 8 steps for foreigners to buy property in Bali
6. Eligibility is subject to verification of customers' identity

Sources checked on: 12 September 2023