Thinking about owning a holiday home in Bali? Here’s what to consider

When it comes to buying or building your dream holiday home in Bali, finding that perfect balance between your personal preferences and the regulatory framework is crucial.

The first step? Pinpointing the ideal location that matches your vision, whether it’s right by the beach or nestled among serene rice terraces. Understanding local property regulations and teaming up with local legal experts are essential to smoothly navigating ownership rules.

“Get a good local notary, because they know the banjar (village council) and are able to suss things out,” advises Ian Chee, a Singaporean architect who owns two villas in South Bali. “Don’t use Jakarta-based lawyers just because they work for big companies. Also, if you want a simpler life, just get leasehold land. It’s a fraction of the cost to buy compared to freehold.”

Singaporeans should not forget to take into account visa regulations if they plan on staying for longer than 30 days at a stretch.

Collaborating with experienced local or international architects, designers, and contractors will help seamlessly blend your design with Bali’s terrain and climate – the effects of which should not be underestimated. Designing with Bali’s heavy rains, humidity, and potential natural disasters in mind is key for your long-term comfort and safety.

For example, Chee’s villas are reinforced to withstand earthquakes, in accordance with local building codes. He also designed his living spaces to be naturally ventilated. “When the climate is not so comfortable, you retreat into rooms that can be climate-controlled.”

Unless you have caretakers on the property, considering security measures such as local security services can bring peace of mind, especially if your property is going to be vacant for periods. Make friends with your neighbours so that there’s an informal neighbourhood watch.

If you plan to make the most of your investment, understanding the potential of the rental market is a must. “Ask yourself if it’s a holiday home for you, or a pure investment,” says Chee. “For me, it’s a bit of both, so the lines are blurred. I’m quite happy with the fact that my property is not fully rented out all the time, because it means I can come and go as I please.”

As for resale value, Chee observes that properties in Bali, like anywhere else in the world, are governed by their location and are subject to the laws of demand and supply. “If you have high expectations of capital gains… then you need to be able to guess where the next Canggu will be,” he says, referring to the trendy but pricey beachside resort.

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Lastly, in terms of property maintenance, Chee shares that it is up to the individual. “It’s up to you if you want to let it go and let it age gracefully, or if you want to constantly refresh it.” - by Aaron De Silva