Things to Ponder while Buying property in Bali (for foreigners)

Its pleasant tropical climate, magnificent landscape, and friendly people indeed make Bali regarded as one the world’s most favored place to inhabit. The island has magnetized multifarious elements of people in the entire world from holidaymakers to peace seekers to find ultimate escape and pleasure. Even, some shift their fun sojourn into a permanent dwelling and are proud to be named an expat.

Once the foreigners feel convenient to settle and merge with the neighborhood, they will purchase property for either commercial or personal purpose. Is it worthy for expats to invest their wealth into the property? Sure, it truly helps you to achieve your financial goals in the future. Still, before going for that, you need to consider these following things in regard to buying property in Bali (for foreigners). 

1. Local Land Rights Called Adat
Famous for its strong tradition, Bali has much power in controlling the residents’ land; as a result, the adat land rights are created. If you are about to buy land property, be sure to find out whether it is under the traditional law or official one from the local government. For anticipation, we recommend you not to buy the land with an adat title as it might bring out some issues concerning the family’s legacy. 

2. Understand Indonesia’s Agrarian Laws 
It is such a significant thing to acquire stipulation about land property ownership. All of the technical matters are regulated under the agrarian laws including the right of use (sertifikat hak pakai), right to build (sertifikat hak guna bangunan), and cultivation right on land (sertifikat hak guna usaha).

Anyone of you planning to build a company, you can make use of the right to build. Meanwhile, owning the land, building structure or cultivating the ground requires both rights of use and cultivation right on land.

3. Updated Regulations concerning Property
According to an act no.13 of 2016, if any foreigners willing to possess a home, they should follow the latest regulation including the particular minimum price level determined by each region authority. 

The cost of a house in Bali is surely different from the one in Jakarta. So, there is no need to gripe about when a house in this exotic island is more extravagant than the rests. In addition to the smallest worth, the expats and their family should own residency status as well as buying the property from a developer. 

4. How Leaseholds Take Place 
Another condition that the foreigners need to conceive is about the leaseholds. It is pretty common to see that fact that getting a hold of condominiums and apartments in Bali is slightly unusual. Once you sign a letter about the lease agreement with a developer and the sale is completely finished, the title remains under the developer’s name. To avoid this, you can hinge on a safer lease certificate commonly known as SHP. 

Buying property in Bali (for foreigners) requires steps out of the ordinary. They strictly depend on the local directions which have distinctive characteristics. 

source: Smart Legal Consulting