Finding accommodation in Bali can be a daunting task, given the island’s growing popularity among tourists and investors. However, with the right approach and researching the real estate market, finding the right one for you shouldn’t be too difficult. We have compiled a list of the most important steps that will make it easier to find and buy your dream property in Bali.
Determine what you need the accommodation for in the first place
The first step in choosing a property in Bali is to determine your goals and needs. You should ask yourself whether you are buying a property for investment or for your own residence, because further approaches can vary greatly depending on the purpose.
If your goal is to invest, it is important to research the potential for property value appreciation in a particular area of the island. Consider factors such as:
- Location: this is one of the most important considerations, because the return on your investment will depend on how well you choose the right neighborhood;
- A proven developer, especially if you are buying a property at the construction stage;
- the terms of the management company, which in the future will be responsible for renting out your property;
- occupancy in the selected area, i.e. what percentage of housing is not idle for a long time and brings income to the owner;
- competitors that are in the immediate vicinity: analyze their prices and conditions, study their strengths and weaknesses;
- if the object you have chosen already had an owner who rented it, you can ask to share the contacts of tenants to clarify what they liked and what – not. This will help you to eliminate shortcomings that you might not have even noticed yourself, such as an uncomfortable mattress, dim lighting and so on.
If you plan to use the property for your own residence, it is important to consider your preferences and needs, as well as pay attention to:
- who your neighbors are;
- whether there are any construction plans in the vicinity of the property (if there are many vacant lots, there is a good chance that there are);
- how close the property is to beaches, restaurants, stores and other infrastructure that is important to you;
- the quality of materials and structures used in construction.
Select a neighborhood
When buying a property to rent out, look first of all at the Changgu area. This option is likely to bring you the most income in the long term.
Changu is located in the southwest of the island and attracts tourists and investors with its unique atmosphere and variety of opportunities. Here you can surf, relax on the sandy beaches or enjoy a sunset overlooking the ocean. Changgu is known for its restaurants, cafes and bars offering a variety of culinary delights. There are also many stores, galleries and markets where you can buy souvenirs, clothing, jewelry and other goods.
Understand whether you want a finished home or one under construction
Of course, there are both risks and benefits to buying real estate under construction. Here are just a few of them:
- you can make adjustments to the interior of your future apartments;
- it is possible to take an installment plan, so that you do not have to pay the amount at once;
- after completion of construction, you can easily sell the property, getting up to 40% of the profit;
- due to the inaccessibility of credit from banks for most developers in Bali, developers are willing to offer significant discounts to attract financing.
What to pay attention to when choosing a developer
It’s pretty straightforward here:
- authenticity of all documents, including the right to build, to land;
- whether the developer has other objects that have been successfully completed and handed over;
- try to invest at the stage when construction has already started.
Of course, this way the cost of real estate will be higher, but there are also more chances that the object will still be built.