Getting Deeper Into It: 

The dream of owning a villa in Bali is one that captivates many. The island’s lush landscapes, vibrant culture, and laid-back lifestyle make it an appealing destination for both investment and personal enjoyment. Like many others, the idea started as a casual curiosity—scrolling through listings, collecting project brochures, and imagining what life could be like in paradise. But as the collection of potential villas grew, so did the seriousness of our intentions.

Hype, Warnings, and Wild Stories

When we got serious about buying, the warnings started flooding in. Friends and family—some with years of experience in Indonesia—shared their horror stories: lost investments, legal nightmares, and "too good to be true" deals gone wrong. It was enough to make anyone think twice.

But for every cautionary tale, there were just as many success stories: smooth transactions, thriving rental properties, and even life-changing relocations. The truth? The line between a dream and a disaster is drawn by preparation, knowledge, and having the right team by your side.

Drowning in Choices

The Bali property market feels like an all-you-can-eat buffet. Beachfront villas, jungle retreats, rice field hideaways—paradise in every form. But with so many options, it’s easy to feel overwhelmed. Prices vary wildly, and every listing seems to promise your own slice of heaven.

We quickly realized we needed clarity about what we truly wanted. Did we prioritize being close to the beach? Were we seeking tranquility or wanted to be in the thick of the action? Bali’s neighborhoods are so diverse, and we knew we needed a list of must-haves and nice-to-haves. Spoiler alert: that list got long.

The Location Dilemma

"Location is everything!" Everyone says it, but in Bali, determining the perfect spot can feel impossible. Every area has pros and cons—some buzzing with tourists, others peaceful and tucked away. Opinions were everywhere, but we knew we had to trust our own instincts.

So, we got boots on the ground. No more relying on Instagram-perfect photos or secondhand advice. We wanted to see, feel, and even taste (local warungs, we’re looking at you) each neighborhood. Walking the streets and visiting properties in person gave us the confidence to decide what truly worked for us.

Working with the Agency: Raising the Bar

After scrolling through countless properties online, teaming up with a Dutch agency felt like the next logical step to refine the search. Their promise? To help narrow things down so we could confidently visit six top properties in person, guide us through all the legal procedures, and organize an assistant in Bali to support us on the ground. By that point, we’d become a bit picky—maybe even borderline jaded—but all that experience only sharpened our perspective. Having lived in multiple countries, we knew exactly what makes a place feel like home and what would appeal to future guests or renters.

We weren’t looking for just any house. We wanted a home with soul—a vibe that’s impossible to resist. It had to be close to essentials like supermarkets, restaurants, and the beach, but also in an authentic area that still felt like the real Bali. No compromises. It took 8 months of searching on our own, then another 3 with the agency, debating, and refining before we finally narrowed it down to the six properties we would visit in person. From there  it would take another year to finish the construction work completley. 

The Importance of Zoning, Ownership, and Leasehold in Bali

Understanding Bali’s zoning laws is absolutely essential for anyone considering property here. The island is divided into several zones—Green, Yellow, Pink, Red, and Orange—each with its own rules for what can and can’t be built. These zones cover everything from agriculture and residential living to tourism and mixed developments. Building in the wrong zone can lead to serious legal trouble, financial losses, or even demolition orders. Always check zoning certificates and consult a legal expert before making any property commitments.

Key Zoning Guidelines:

• Green Zone: Agriculture only—no construction allowed.
• Yellow Zone: Residential use only—no businesses permitted.
• Pink Zone: Tourism developments, such as hotels or short-term rentals.
• Red Zone: Commercial and industrial purposes.
• Orange Zone: Mixed-use—residential, commercial, and tourism.

Zoning regulations directly impact profitability, legal compliance, and the overall success of your investment. Always verify both zoning and ownership details before moving forward with any property.

Land Ownership 101: The Not-So-Secret Rules

Here’s the deal: freehold ownership in Bali is reserved for locals. But don’t worry! Foreigners can lease land for the long term—think of it as a super-extended Airbnb stay. If you’re looking to go the business route, you can set up a PT PMA (a foreign investment company) to own property like a pro entrepreneur.

Leasehold Risks

Leasehold properties are the most common route for foreigners, but they come with their own set ofchallenges. There are uncertainties about lease renewal, potential disputes over land rights, and the need for clear, legally binding agreements. One of the biggest concerns is what happens as the lease nears its end—without a clear extension agreement, the property’s value can drop. Negotiating extension options upfront is critical to protecting your investment and maintaining its long-term potential. Always have a trusted legal advisor review any leasehold contract to ensure your rights are secure.

In short, zoning, ownership rules, and leasehold details are all critical pieces of the Bali property puzzle. Double-check everything, ask questions, and never skip the legal steps—your dream villa depends on it.

Practical Tips for Property Hunters

• Decide on your ideal location: buzzing areas or tranquil retreats?
• Test the WiFi—how else will you post those envy-inducing beach shots?
• Spend time in the neighborhood. Eat, shop, and experience the local vibe.
• Stick to your list of must-haves and don’t compromise.
• Work with professionals. A reliable agent or company makes all the difference.

Financing: Navigating the Numbers

Financing a property in Bali isn’t always straightforward. Local banks can be cautious, so exploring options with banks in your home country might be the way to go. Be prepared for a bit of paperwork and patience—it’s all part of the adventure.

Conclusion

Buying property in Bali is a thrilling journey—equal parts exciting and challenging. The market is full of opportunities but also a few potential pitfalls. With preparation, thorough research, and the right experts on your team, owning a Bali villa isn’t just a dream; it’s entirely possible. So, if you’re thinking about diving in, remember: preparation, personal experience, and a little humor go a long way.