Why Use A Buyers Advocacy
Why Use A Buyers Advocacy
Buying property in Indonesia, including Bali, is different from many other countries because of strict regulations on foreign ownership. Here’s a detailed guide to what foreign investors can and cannot legally buy, plus tips to navigate the process safely.
Right to Use (Hak Pakai - SHGB)
This is the most common option for foreigners. It gives you the legal right to use and occupy land or buildings for a set term, usually 25 years, with options to extend up to 80 years. While you don’t own the land freehold, this right is legally recognized and allows you to live in, lease, or develop the property within the agreement terms.
Leasehold (Hak Sewa)
Foreigners often buy leasehold agreements, which are contracts allowing you to lease land or a villa for a long period—commonly 25 to 30 years, with renewal options. Leaseholds provide a secure way to control property without full ownership but require carefully drafted contracts to protect your interests.
Foreign-Owned Company (PT PMA)
If you plan to develop commercial properties, resorts, or apartment buildings, you can establish a foreign-invested company (PT PMA). This company can hold a Right to Build (Hak Guna Bangunan or HGB) title, which allows ownership of buildings on land owned by the company for an initial period of 30 years, extendable up to 80 years. While more complex and costly to set up, this option provides greater control and is widely used for larger investments.
Freehold Ownership (Hak Milik - SHM) – Not Available to Foreigners
Full freehold land ownership is reserved exclusively for Indonesian citizens. Some foreigners attempt “nominee” arrangements where an Indonesian holds the title on their behalf, but this is illegal and carries significant risk, including total loss of the property.
Why Use a Buyer Advisory in Bali?
Unlike many countries with buyer-friendly property portals, Bali’s real estate market is largely unregulated online. About 90% of listings appear only on social media, a breeding ground for misinformation, unreliable sellers, and unscrupulous agents. Without a trusted local advisor, buyers risk falling victim to scams, inflated prices, or hidden pitfalls.
There are no centralized websites where you can safely search for genuine properties. Instead, finding the right villa or land requires deep local knowledge and strong connections. At MDT Property Group, our extensive network and on-the-ground relationships allow us to source off-market and exclusive listings that you won’t find online.
Why Use a Buyer Advisory in Bali ?
- Unlike many countries with buyer-friendly property portals, Bali’s real estate market is largely unregulated online. About 90% of listings appear only on social media, a breeding ground for misinformation, unreliable sellers, and unscrupulous agents. Without a trusted local advisor, buyers risk falling victim to scams, inflated prices, or hidden pitfalls.
- There are no centralized websites where you can safely search for genuine properties. Instead, finding the right villa or land requires deep local knowledge and strong connections. At MDT Property Group, our extensive network and on-the-ground relationships allow us to source off-market and exclusive listings that you won’t find online.
- Using a Buyer Advisory also saves you countless hours of research, viewing unsuitable properties, and dealing with unprofessional sellers. We filter options, handle negotiations, and protect your interests every step of the way.
- As the old saying goes: “If you think it’s expensive engaging a buyer’s advocate, wait and see how much it costs when you don’t use one here in Bali.” Agents here can disappear with your deposit in a flash — without expert guidance, you’re vulnerable.
- With a professional Buyer Advisory by your side, you gain peace of mind, time savings, and a safeguard against Bali’s unique risks — making your property purchase as smooth and secure as possible