There are numerous properties and land for sale in Bali, and due to the recent growing interest from global investors, land prices are increasing at between 15% to 20% annually. As with all properties around the world, most investors are only keen on freehold properties due to the unquestionable fact that the land value will always appreciate and it belongs to you ‘forever’.
However, under the Indonesian law, only Indonesian citizens are allowed to own freehold properties. Due to this law, most foreigners are only able to buy freehold properties if they use an Indonesian citizen to act as a nominee. This means that under the law, the nominee owns the land and has his/her name on the title deed. In order for the foreigner to still own the rights to the property or land, the two parties goes into a separate agreement that spells out a long list of terms to help ensure that the foreigner still holds the rights to the land and title deed.
This is not regarded as completely secure as there has been cases of disputes and foreigners losing their freehold properties in Bali.
However, foreigners are allowed to own leases in land and villas in Indonesia.
Leasehold is the safest and most secure way for any foreigner who wants complete protection of their investment and ownership of their properties in Indonesia. The lease document of the land or villa that you buy, has your name clearly stated on it and in the event of a dispute, this lease agreement is recognised and accepted in the Indonesian Court of Law.
Our villas are offered at 23 years leasehold with an option to extend for another 25 years. Apart from enjoying the annual returns from the daily rentals, the value of your villa is able to appreciate with the surrounding land prices, as long as there is at least 15 years left in the lease. It is very likely for owners to sell their leasehold villas to the global market, especially with the continued strength of the tourism and beauty of the magical island of Bali.
Contact us to find out more about leasehold terms. We will be happy to share our research data with you.