Located in the west of Lombok and the east of Java, Bali has served as a tourism hub for decades with comprehensive travel offerings. However, a great number of foreign investors are now very much into buying property in Bali than anywhere else in the world. There are many reasons that Bali is currently a top choice among property investors around the world.
Over the years, the economy in Bali has been driven by tourism. And due to the prospering tourism, the property has also developed extensively by more than 80%.
According to Bali Province Tourism Development Statistics, the number of visitors arriving at Bali’s Ngurah Rai International Airport in 2019 was recorded at 6.3 million while local visitors to Bali were at about 10 million.
Therefore, as you can see, the growth of tourists means the increasing demand for hotels, villas, resorts and other types of property in Bali.
If you are one of those who are thinking of buying property in Bali to get a piece of the profitable pie, you need to look into conducting due diligence.
Why Conduct Due Diligence Before Buying Property in Bali
There are unforeseen risks when buying property in Bali. If you’re not meticulous enough, you will end up on the wrong side of the Indonesian legal system.
Most of the time when you have come to realise it, it is already too late. Thus, you must find a reliable partner and conduct due diligence before you finalise the deal.
Most foreigners may think of skipping out on due diligence to save money or find a cheap but shady due diligence service provider to do the job. You should avoid doing this at all costs as you can be easily victimised in a hoax in terms of monetary loss and other more serious penalties.
Always hire a professional who can do the due diligence properly for you who can help you with the process of property purchase seamlessly without any negative consequences.
Here is a summary of things that due diligence will help you understand when buying property in Bali:
1. Lease Rights and Zoning Regulations
You need to know the details of the land you use to build your property. The government regulates the land in Bali under the City Planning Act. It means that certain buildings and building purposes are restricted on specific due to zoning and environmental legislation. Therefore, you must verify the land your property is built on is permitted for your building’s intended purposes.
2. Property Ownership History
Due diligence helps with the identification of the land documents to make sure that they are properly issued and have the right owners. It also provides you with the history of the property to prevent any discrepancies.
3. Neighbourhood Research
When buying property in Bali as a newcomer, you may not know certain neighbourhoods. Instead of spending a lot of time to do the research yourself through the local police department, due diligence can help determine the crime statistics and potential hazards for you efficiently.
Cekindo as Your Due Diligence Partner in Bali
Cekindo acts as your due diligence partner, allowing you to gain an in-depth understanding of sellers when buying property in Bali.
Many foreigners have turned to us for advice concerning transactions to assist them with risk management and taking advantage of opportunities. Your partnership with us also demonstrates to regulators that you conduct proper due diligence and your transactions comply with local laws.
By undertaking a detailed review of your seller when buying property in Bali, you can help safeguard your rights as a buyer. It helps you make informed decisions.
See how Cekindo’s due diligence service can help you reduce risks when buying a property in Bali. Contact us now.