In the post-global pandemic, Bali has made a comeback, and the growing demand for property investments in 2023 is proof! And if you want to live in Bali or create a business here by renting out the villas, leasehold is the best option, especially when you are a foreigner. After all, owning a property in Bali is not an option for non-Indonesians unless they will build a PT. PMA company.

But before you buy a villa in Bali for leasehold, you should have a clear idea of this leasing concept here for better decision-making before any investment. Let’s get started!

What Is the Bali Villa Leasehold Concept and How Do They Bring a Perfect Investment Opportunity?

According to Indonesian law, a foreign national does not need to register a PT. PMA company while leasehold property in Bali.

Taking villas for lease in Bali means a long-term lease or temporary ownership where you have control over the property for a certain time. With a legalised contract, you will have a stronger ownership form than signing the lease agreement with the property owner.

Now, if you wonder how leasehold Bali villas are a perfect investment, you can understand that from the length of agreements and clauses. For example:

Length of Leasehold Agreement:

In Bali, the leasehold agreement length is up to 25 years first, but you can extend it up to 70 years using the Right to Lease (Hak Sewa). Hence, there will not be any annual lease payment while you will sign as per the current market conditions.

Leasehold Clauses:

Now, you will have complete ownership of the villa for the specific time you lease it. Within that period, you can sublease the property as a vacation home or rental business to double your investment and gain a great ROI. And since Bali has become one of the top tourist destinations now, no wonder you will have a huge passive income by using this investment opportunity.

However, you should know that since you don’t own the property, you have no right to sell it. But yes, you can sublease the villa, which is called “lease transfer” or “sell the lease”. Also, you or your family won’t have the villa permanently beyond the leasehold agreement unless you extend the lease.

Types of Bali Villas Best for Leasehold

While leasehold a villa or land in Bali, you have the following options to choose from:

Empty land:

Yes, acquiring an empty property and building your villa in Bali is a great idea since such lands are affordable. But the overall construction costs are not that much less!

Off-plan villa:

The demand for off-plan villas in 2023 is quite high since the developers have taken care of such under-construction villas already. Hence, you don’t have to spend much on maintaining or designing it.

Existing villas:

It is the most straightforward alternative for leasehold property in Bali. After agreeing on the price and leasing it, you can move in whenever you desire.

In a Nutshell:

To cut a long story short, investing in a Bali villa for leasehold is really a perfect investment opportunity you should never miss! And if you are interested, count on Prestige Property Bali. With our experts, you can find the best Bali villas for sale to leasehold. Also, we can help you legalise the property you are leasing.

For the top property lists and best price estimates, stay tuned with us!