When Kathryn Romeyn thinks of her dream home, she envisions a certain number of rooms or maybe a standout feature like a library. But when she began searching for a plot of land to build her Bali villa, location was the biggest priority.

In her search, she found a property in a semirural neighborhood known as Pedang Pedang. Dream Home in Bali area is less touristy and more akin to the “real Bali,” where rice fields follow the natural contours of the landscape and volcanic Mount Batu Karu towers over the region.

Purchasing a villa in Bali can be an excellent investment for foreigners, with the island’s thriving tourism industry and relaxed culture providing strong rental income potential. However, there are a few things that foreigners need to be aware of before making their purchase.

Bali Villa Investment: Smart Moves for Your Future

Investing in a freehold villa will give you complete ownership rights and be ideal for long-term residency, but is nearly exclusively available to Indonesian citizens. Leaseholds, on the other hand, offer a more limited scope of ownership and are more commonly available to international buyers.

When you buy a villa in Bali, make sure it is legally zoned for residence and has IMB – a building permit. This is a major requirement that a lot of foreigners overlook and it can cause a lot of problems if you don’t get it right away. Also, always read reviews about the villa you are considering. Whether they’re good or bad, you can learn a lot from other people’s experiences.