Buying Real Estate in Bali

Most of the time after having spent a few trips traveling to Bali and staying in a villa, Bali rental may seem like something you want to get past. You may even think about moving to the island to set up a permanent summer home for you and your family. Before you take the plunge, it is best to examine what conditions you must fulfill in order to be able to get any Bali real estate for sale.

Indonesian laws, in which Bali is a island under the rule of, state that foreigners cannot own land in the country. The only exception to this rule is people deemed to be resident foreigners or companies which have a representative office in Indonesia. Both of which must be also deemed an asset to Indonesian benefits. So not just anyone is allowed to buy property in this part of the world.

Of the people who are allowed, there are certain provisions which are open to them. All of the provisions mean that every so often a renewal is needed by the Indonesian government in order to continue to use the premises. These two provisions called rights were only recently passed to allow people to use the land who are not originally from Indonesia.

The Right of Use deals with being able to use the land. This was originally passed to discourage large companies from coming to the nation and exploiting the small amount of land they had already. Every twenty years this right must be renewed for a period of then either twenty-five years or even indefinitely. There is no limit to the amount of times in which a permit can be renewed.

The Right of Building Use deals with being able to use the building which is on the land already or being able to construct a new building for use on the land. This is usually what most people think of when they are thinking of buying any Bali real estate for sale. This right must be renewed every year by paying money to be able to continue to use the land.

Neither one of these fully guarantees a foreigner the complete rights to the building. In order to obtain a building for yourself completely, you need to have an intermediary who is a citizen of Indonesia. Many times this can be a problem learning who to trust with this building. If they choose to take it themselves, then you have no legal right to try and get it returned to you. For this reason, most people consult with professional businesses that have experience when it comes to buying homes for foreigners and maintaining them on the island.

If all of this seems like too much trouble, you may want to consider continuing to stay in a villa; Bali rental fees are not as much as it would cost for you to purchase or even to rent from other areas of the world. No matter what option you choose though, the island is a great place to visit if you are looking for an escape from the pressures of the Western world.