How to avoid getting burnt in the hot Bali property market

Bali’s property market is booming, attracting investors, expats, and long-term renters from around the world. However, behind the tropical dream lies a range of pitfalls that many newcomers overlook. Understanding the risks of buying and renting in Bali is crucial before making any financial commitment.

Renting Risks in Bali

• Fake Listings – Scammers often pose as owners, especially on Facebook Marketplace, collecting deposits before disappearing.
• No Formal Lease Agreements – Many deals are verbal or poorly drafted, leaving tenants unprotected.
• Sudden Eviction – Landlords may reclaim properties mid-lease to re-rent at higher prices.
• Inflated Prices for Foreigners – Dual pricing is common, with foreigners paying significantly more than locals.
• Maintenance & Liability Issues – Rental contracts often fail to clarify who is responsible for repairs.
• Copy-Paste Scams – Fraudsters repost photos from Airbnb or Booking.com, pretending to own the property.
• Suspicious Payment Requests – Demands for deposits via Western Union or crypto are major red flags.
• Too-Good-to-Be-True Deals – Luxury villas advertised at a fraction of market value are usually scams.
• No Legal Recourse – Once money is transferred overseas, recovering funds is nearly impossible.
• Property doesn’t meet western standard – Things like smoke detectors and electrical safety devices (RCD) are often not included in homes in Bali and could pose a danger to your safety.

Buying Risks in Bali

• Lack of Due Diligence – Many buyers skip proper checks, leaving them exposed to fraud and the risk of losing the proeprty.
• Leasehold Traps – Leases are often not registered with the land office, making them invalid in disputes.
• No Central Property Registry – Unlike Australia and the US, Bali lacks a reliable central property portal (until platforms like Propeko).
• Missing Building Permits (IMB/SLF) – Properties without the right permits cannot be legally rented or developed.
• Tax Complications – Many owners fail to declare income, creating risks for buyers and tenants in disputes.
• Inheritance Challenges – If the landowner dies, heirs may contest lease agreements.
• Unlicensed Agents – With no regulation, anyone can claim to be an “agent” and sell property.
• Overpricing – Sellers often inflate prices dramatically when dealing with foreigners.
• Unclear Zoning Rules – Villas built on agricultural land risk fines or even demolition.
• Overlapping Titles – Poor record-keeping means the same land is sometimes sold to multiple buyers.

Final Word

Buying or renting property in Bali can be rewarding, but the risks are real. Always conduct due diligence, work with trusted professionals, and never rush into deals that seem “too good to be true.”

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