How to start investing in property on Bali or Nusa Lembongan

Step 1: Get clear on why you’re interested and what you want to achieve

Before you start sketching villas or scrolling through land listings, it’s important to ask yourself what you actually want from this

• Is it a lifestyle move?
• A long-term rental income strategy?
• Or a pure capital investment?

Bali offers all three

• But each comes with a different timeline, risk and level of involvement

So be honest with yourself. What kind of investor are you?

• Do you want to be involved in the process?
• Are you excited about designing, choosing materials and being part of every step?
• Or would you rather invest and let someone else handle the day to day?

Keep in mind: there’s no wrong answer to this question.
But your answer will shape everything that comes next

Step 2: Learn the landscape — legally and literally

Foreigners can’t own land freehold in Indonesia

But there are legal ways to secure property and benefit from it

• Leasehold agreements
• PMA company structures
• Or nominee setups through a notary

This part may sound technical but it’s surprisingly doable. You can even sign a pre-agreement fully online via a trusted legal representative. No need to be physically present

At this stage you’ll often make a deposit of 5 to 10 percent. That money goes into escrow and is fully refundable if the land doesn’t pass due diligence. So you’re not taking blind risks

Due diligence includes:

• Checking zoning rules
  
• Validating land certificates
  
• Confirming no tax issues or restrictions
  
• Making sure access roads and utilities are in place
  

This entire process is managed by a licensed notary and verified through the official land office. These are established procedures, carried out daily by professionals who know the system inside out.

Tools to start exploring:

• Google Maps (satellite view gives you a lot)
  
• Bali GIS maps (if available)
  
• LinkedIn groups like “Bali Villa Professionals”
  
• Notaries (PPAT) who speak English or your preferred language
  

Step 3: Choose the right location

Not every beach is a good investment .Some areas like Canggu or Uluwatu are already far along the curve. Others like Lembongan or parts of Lombok are still growing. And that’s where opportunity lives.

Spend time on the ground. Book an Airbnb, rent a scooter, and observe.

What’s the vibe? Are their facilities nearby? How developed is the infrastructure?

The more you understand the area you’re in, the more likely you are to add & create value.

Step 4: Find the right land or existing villa

Now that you’ve found your why and your where, the what becomes easier

• Do you want to build from scratch?
• Or buy something existing and make it better?

Either way, Be careful with “too good to be true” deals

Always check:

• The land certificate
  
• Legal access to the plot
  
• Ownership history
  
• Water and electricity availability
  

Once you find something, the seller may ask for a small deposit, usually 5 to 10 percent
This goes into escrow and is refundable if the land doesn’t pass due diligence.

That check includes:

• Can you legally build here
  
• What’s the zoning
  
• Are taxes paid
  
• Are there claims or legal issues
  

The due diligence and legal checks are handled by a licensed local notary (PPAT), who oversees the entire process from verifying land certificates and tax records to ensuring there are no encumbrances or disputes. Everything is cross checked and confirmed through the official land office (BPN), so you can move forward with clarity and confidence.

Step 5: Partner with a trusted developer or builder

This is where most dreams either take shape or fall apart…

We strongly suggest working with experienced partners who understand not just construction, but local culture, permits, and long-term quality.

On Lembongan, Shape Haus is a known name for villa development with an eye for design and longevity.

Tips when it comes to finding a partner:

• Obviously: Their work. Does it speak to you? Would you like to stay at the venues that they’ve developed?
• Reviews: What are the people saying? How did they experience working with them?
• Intuition: Talk or even better visit them. Make sure you get a deeper understanding on how they operate. Do they use high quality materials? What are their ethical standards

Even if you’re the type of investor that’s not willing to take part in every step of the process, investing some time and effort can especially benefit your process. Find someone you can trust and rely on. 

Step 6: Design with purpose

Think about function and flow.

If your goal is rental income, consider the guest experience

• Privacy, air flow, kitchen layout, outdoor shower, filtered water, these details matter.

An aesthetically beautiful villa that’s hard to clean or overheats at noon won’t perform well 

Step 7: Start thinking about rental returns early

‍Even before the first brick is laid, think about your positioning in the hospitality market.

Will you manage it yourself, or work with a rental agency?

Benefits of an agency:

Once the property is complete, a reliable rental partner can step in and take over the operational side:

• Guest communication
  
• Booking platform setup
  
• On-site cleaning and maintenance
  
• Monthly reporting

But besides that, also try to make sure that everything else about your venue is appealing to your future guest.

Who is your target audience: Surfers, families, honeymooners?

• What are the needs of your audiences? What do they like? 
• Are they into fancy dinners? Would they like to cook?
• Are they looking for adventure? Or do they want to relax by the pool

All of these things need to be taken into consideration. Try to place yourself into your future guests. Then, what would you like to see when you open the doors of your location

At Avanterra, we work with property owners to take care of the full rental journey. From bookings to check out, we make sure every step of their stay is seamless and intentional.

You build, we help it reach its full potential.

Step 8: Prepare yourself for the long game

Investing in Bali isn’t a quick flip. It takes patience, paperwork, and a bit of island rhythm.

But with the right guidance, it can be deeply rewarding. Not only financially, but also personally. 

‍

Thinking about your own project?

You don’t need to figure all of this out alone.
There are clear, legal processes in place, but working with the right team can save you months of confusion and expensive missteps.

We’re always happy to share insights from the field. Whether you’re scouting land, curious about returns, or just starting to dream. Please reach out, we are happy to help!