Who want to have a vacation home in Bali? Not only that you can own it for your private holiday in the island, but you can also turn it as a source of income. Especially in Bali, where tourism blooms and holiday accommodation is a lucrative business. It’s not difficult to find good lands or holiday villas for sale in Bali — but buying it is another game. Not only that you need to deal with Indonesian law of land and property ownership for foreign investors, you also need to know the hidden costs of buying property in Bali.
The Cost of Inspections
When you purchase any Bali villas for sale, you will need a thorough inspections. You’ll want to know anything that needs repairs and any other problems in the house. That is another cost.
We recommend conducting a professional home inspection, just like you would for your primary house, to check the condition of the Bali villas and negotiate any needed repairs. This can cost as little as $200 on a smaller property and as much as $500 on a bigger one. You, as the buyer, will be responsible for this expense.
You may also choose to have extra, more detailed inspections done at your agent’s or the general house inspector’s recommendation. Termite/pest inspections, structural inspections, property surveys, and radon inspections are just a few examples. Each of these comes with an additional fee but can save you thousands — if not tens of thousands — of dollars if something new turns up.
Property Agent & Realtor Cost to Purchase Bali Villas for Sale
In terms of comprehending the local processes and legal environment, purchasing a property in Bali might be challenging. Do not attempt to navigate it on your own. You’ll want an experienced realtor on your side to help you navigate the process. This will cost money, but if you avoid typical mistakes and problems, it might save you a lot of money in the long run. Get suggestions for agents from people in the area, and make sure they have expertise selling to foreigners.
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Taxes and Fees
Buying a real estate is never cheap, and the expenditures in Bali are higher than in many other places. There are at least three things you need to pay:
- Fees for agency/agents: 5%, paid by either the selling or the buyer
- The cost of a land deed: 1%.
- Transfer tax for payments: 5%
The Cost of Notary for Purchasing Bali Villas for Sale
Foreigners interested in purchasing land in Bali should conduct thorough due diligence to ensure that the purchase is legal and free of complications. Using the services of a reputable Public Notary is one example. In relation with property transaction and land acquisition, a notary will do the work of processing the transfers of land titles, and legalizing plus certifying the civil and commercial agreements, such as property leases.
- The fees for notaries and lawyers range from 0.5% to 1.5% from the property price
- The fees for public registration are 0.2 percent of the total.
Some agency, like Kibarer, provide notary and lawyer service when you buy Bali villas for sale with their service. This could free you from finding a good notary that follow proper legal process during the transactions.
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Insurance for Your Bali Real Estate
Nobody can anticipate the future, but you can prepare yourself to deal with the unexpected. So, in a nutshell, yes, you should insure your newly bought Bali villas. Because Indonesia is located on the “Ring of Fire,” you should be aware of the dangers of earthquakes, volcanoes, and tsunamis. If you just want to protect your family’s home or business investment, you should check into insurance policies, which often cover things like fire, lightning, wind, hail, liability, and personal injury. If you rent out your home, you should consider getting landlord insurance to cover unforeseen losses to furniture, appliances, and other valuables.