Owning Property

Before we start there is one important thing to understand, whatever anyone tells you foreigners are not allowed to own land in Indonesia.

So how do they sell villas?

Well foreigners can lease land. Leases are not allowed to be longer than 30 years although they can be extended later on.

Another method may be to form a management company. Foreigners can own shares in companies.

Guaranteed Returns?

Many villa sales people say they will rent out your villa on your behalf and guarantee returns of maybe 12% or so per year. Take this claim with a pinch of salt, the huge number of villas being built in Bali means that the competition for that elusive rental is very high.

Permits and Tax

The government in Bali is also starting to realise that villa owners are operating virtually as hotels but do not have hotel permits and do not pay tax. Things are likely to change in the near future.

Villas - a booming industry

Many people are now coming to Bali and buying villas. The lifestyle and the environment in Bali are superb and very affordable.

Buying a villa can turn out to be a nightmare if you get it wrong so care is needed. If you get good advice and deal with ethical people it is possible to get a good arrangement. But beware, many have been taken to the cleaners after being pursuaded to trust a smooth talking salesman or a smiling face.

You should also read the small print. Look out for arrangements that have hidden costs or promise terms longer than 30 years. Also look out for clauses that limit you, one operator insists that you cannot buy your own furniture for your villa.

Do not be tempted to buy your villa in the name of someone else. A recent case involved a very expensive villa that was claimed by the owner's driver once it was built and paid for. He seemed such a nice chap!

If you really want to buy a villa, this is a beautiful place to live, an excellent place to retire. Find dependable people, don't go with the first person you meet, look around, explore the market, test out the person selling the villas and above all get very good legal advice.

A good move might be to talk to lawyers who are representing people who have had major problems. You might start by contacting Kantor Kita at: 0361 287 020.