Buying property in Bali is a promising step, whether for a dream home or an investment. But beyond the stunning nature and potential for profit, there are critical factors you must understand before signing any documents.
Ignoring these details could lead to significant financial loss and legal problems down the road. Don’t let that happen. Here are five essential things you must know before you look for Bali land for sale.
This is the most important step. Bali has strict spatial planning regulations to maintain a balance of nature and culture. Every piece of land has a specific designation, such as:
Yellow Zone (Residential): Can be used for property development.
Green Zone (Agricultural): Cannot be built on, except for facilities that support agriculture.
Gray Zone (Open Land/Other): The purpose can be changed, but requires in-depth research.
Buying land in the wrong zone can make your construction plans impossible to realize. Make sure the land you’re interested in has a zoning status that matches your goals.
In Indonesia, there are several types of land ownership rights. You must understand the differences between them:
Hak Milik (Freehold): Full, unrestricted ownership rights. This is the strongest type of ownership. It can only be owned by Indonesian citizens.
Hak Guna Bangunan (HGB – Right to Build): The right to build and own a building on state land or land owned by another party for a specific period (typically 30 years and can be extended).
Hak Sewa (Leasehold): The right to use the land and any buildings on it for an agreed-upon lease period. This is the most common option for foreign citizens.
Make sure you understand the rights and obligations of each ownership type to avoid future misunderstandings.
Never buy land based on a seller’s word alone. Conduct a thorough legal due diligence to ensure the property’s legality. Things that must be checked include:
Land Certificate: Verify its authenticity and legality at the local land office.
Seller’s Legal Status: Ensure the seller is the legal owner and the land is not under dispute.
Debt or Collateral: Check if the land is not being used as collateral for a loan or is involved in any debt issues.
Performing due diligence will protect you from potential fraud and future disputes.
A beautiful location with no proper road access can significantly decrease a property’s value. Make sure the land you buy has a clear and official road access, whether it’s a public road, a village road, or a legal private access. Small paths or alleys without clear legal status can create problems, especially if you plan to build a commercial property.
Think about the existing infrastructure around the location. Is there adequate access to electricity and water? What about the internet network? Also, pay attention to the surrounding environment, such as the potential for flooding, erosion risks, or population density. Buying land in the right location with good infrastructure will save you a lot of costs and headaches during the construction process.
Buying land in Bali is a smart investment, but it requires careful planning. Don’t let your dream be hindered by avoidable mistakes. Conducting in-depth research and consulting with experts is the key to success.
At Githa Asri Properti, we not only help you with the Bali land for sale process but also provide comprehensive legal and due diligence consultations on all important aspects of property investment in Bali.
Ready to secure your dream property in Bali safely and with peace of mind? Contact Githa Asri Properti today for a free consultation and ensure every step you take is the right one.
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