5 Common Mistakes to Avoid When Buying Property in Bali

Buying property in Bali sounds like a dream, right? Beautiful beaches, warm weather, vibrant culture - it’s no wonder so many expats and investors are drawn to this island paradise. But buying real estate in a foreign country is very different from booking a holiday. There are local rules, hidden fees, and legal frameworks that can trip up even the smartest buyers.

To make sure your Bali property journey is exciting - not stressful - here are 5 common mistakes people make, and how you can easily avoid them.

Skipping Proper Bali Property Due Diligence

Let’s be honest - when you fall in love with a villa in Canggu or a cliffside home in Uluwatu, it’s easy to rush in. But skipping proper due diligence is one of the most expensive mistakes you can make.

Many buyers don’t check the land certificate properly or ignore whether the building has the right permits. Others assume zoning rules won’t matter. But later, they’re stuck with legal issues that delay - or completely block - their property plans.

What to do instead: Hire a local notary (PPAT), check land ownership history, verify zoning, and get every document in writing - translated if needed. Due diligence isn’t a step; it’s a safety net.

Trusting the Wrong Property Agent

In Bali, anyone can call themselves a “property agent” - and unfortunately, many do. Some agents push properties that aren't legally sound or inflate prices just to earn a higher commission. Others are just not experienced in helping foreign buyers.

What to look for: Choose agents who are part of a registered agency, have experience working with international clients, and are transparent about their commission structure. A good agent won’t just sell you a house - they’ll guide you through the entire process like a partner.

Pro tip: Ask to speak to past clients or check Google reviews before moving forward.

Overlooking Title Deeds and Ownership Structures

Foreigners can’t own freehold land in Bali - that’s a law, not a loophole. But there are safe legal structures that allow you to own or use property, such as Leasehold, Hak Pakai (Right to Use), or setting up a PT PMA (a foreign-owned company).

The issue? Many buyers don’t fully understand these options and end up choosing the wrong structure - risking their rights, long-term plans, or even the property itself.

Best move: Sit down with a legal advisor who’s handled foreign investment before. They’ll help you choose the right ownership method based on your goal - personal use, income generation, or long-term asset holding.

Ignoring Hidden Costs in Bali Real Estate

That “budget-friendly” villa might not be so budget-friendly after all. Beyond the listed price, there are several hidden costs buyers don’t always see coming - from notary fees and taxes to renovation costs and annual land/building taxes.

You might also need to furnish the home, pay management fees, or handle licensing for rentals.

Avoid surprises: Before signing anything, ask for a full cost estimate - down to the taxes and maintenance fees. And always keep 10-15% of your budget aside for post-purchase expenses.

Buying Off-Plan Villas Without Guarantees

Off-plan properties in Bali can be appealing - especially with lower prices and modern designs. But buying something that doesn’t exist yet? That carries real risk.

We’ve seen buyers stuck in projects that never finished, had major delays, or looked nothing like the original design. And when there are no written guarantees, recovering your money is tough.

Play it safe: Only work with developers who have a proven track record. Ask to visit their completed projects, read every clause in your agreement, and make sure there are financial safeguards, timelines, and refund clauses in place.

Pro Tips for Foreign Buyers

Here’s what experienced investors in Bali always do:

• Hire a bilingual property lawyer and certified notary
• Register your purchase legally - no nominee tricks
• Stick to established zones like Canggu, Ubud, Sanur, or Seminyak
• Understand your tax obligations - both purchase and yearly

Remember, it’s not just about buying a house - it’s about protecting your investment.

Conclusion

Bali is truly special - and owning property here can be both emotionally and financially rewarding. But it’s not something to rush. Take your time, ask the right questions, and surround yourself with professionals who know the system inside and out.

Avoiding these five common mistakes will give you peace of mind and make your dream home or villa a smart, long-term success.

Ready to Explore Properties Safely?

At Leylines.com, we specialize in helping international buyers invest in Bali the right way - legally, securely, and stress-free.

Visit Leylines to view handpicked listings and get expert support today.

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