Why some Aussies are now heading to Bali to invest
Bali has been a popular choice of holiday destination for Aussies for quite some time.
In fact, according to a report released by the Australian Bureau of Statistics in February, around 1.37 million Aussies travelled to Indonesia in 2023.
However, with Australia’s rising interest rates and house prices reaching record highs across most of the capital cities, some Aussies are turning to Bali to invest.
While the Indonesian government prohibits foreigners from owning freehold land (Hak Milik), where they purchase once and own the land forever, Hak Sewa ownership is a long leasehold where the buyer is entitled to full usage rights and control of the land during the leasehold period.
There is also the option to the extend the lease.
“The lease term in Bali is typically 25 to 30 years and it’s common for the lease to be extended for another 25 to 30 years,” Angela Udemba, owner of PT Mazari Properties Group, explains.
The Indonesian government’s decision to expand visa categories has also impacted the number of foreigners who choose to call Bali home.
Proposed in August 2023 and launched last month, the Golden Visa policy offers long-term residency to foreigners who make significant investments in Indonesia and is valid for five to 10 years.
There is also the Second Home Visa policy.
“Many of our investors now have a long-term vision of eventually spending several months a year in their villas when they retire or semi-retire,” Udemba reveals.
“There’s also increased interest from families looking for a six-month sabbatical.”
Udemba is behind a new property development in Bingin, an area of Bali’s Uluwatu region, with a collection of one, two and three-bedroom villas available for foreigners to invest.
The new Svara by Mazari Villas collection follows the recently-sold collection of Mazari Villas.
One-bedroom villas start from $US232,800 ($AU357,493). Investors are required to pay a 15 per cent deposit with the remainder to be paid over a year.
The villas have a floorplan ranging from 83 to 244 square metres and come fully furnished. Construction is due to commence this month, with a completion date scheduled for October 2025.
A gym, sauna and cold plunge pool is available for residents in the complex.
One Aussie who has taken the plunge and invested in property in Bali is Isabel Whitaker, a 47-year-old chocolate shop owner from Oakdale, New South Wales.
Whitaker purchased from the recently sold-out Mazari Villas.
“It was the return on investment that drew me in,” Whitaker reveals.
“Initially I just wanted something that had the highest possible return. I looked at several different places and Bali kept coming up as the one that had the highest return on investment.”
Whitaker was also interested in the “possibility of living somewhere part-time as well.
“I’ve got kids that are young adults and I wanted to be close enough that I could still come home,” she says.
Udemba encourages Aussies to do their research, particularly if they feel a bit hesitant about investing overseas.
“Choose a reputable company that offers some protection,” she advises.
“For us, it’s things like extended warranties and detailed contracts listing finishing materials that ensure accountability. You don’t have to be married to your investment forever.”
“Most property investment opportunities in Bali are off-the-plan which increase in value by over 20 per cent by the time construction finishes. Remember, you can always sell and make a quick return,” Udemba says.
The company also provide agents who offer tax and legal advice, and handle all aspects of setting up an investment in Bali.
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