Bali: A piece of paradise under $160k
Palm trees, paradise-like beaches, sunshine, delicious food, affordable housing, and up to 20 per cent returns on investment. Why is Bali attracting Australian investors?
With Easter approaching, Bali remains a top choice for Australians seeking affordable luxury getaways, while investors can enjoy 10–20 per cent returns on their property investment.
With over 1.3 million Australians travelling to the “Island of Gods” each year, Bali has long been a popular holiday destination.
In 2023, Bali even surpassed New Zealand as the top location for short-term trips abroad by Australians, with 86 per cent traveling for holidays and 7 per cent visiting friends or relatives.
While many Australians have travelled to Bali solely for holidays, others have taken advantage of the low property prices to invest on the island.
According to the Indonesian government’s Investment Coordinating Council, in 2024, investment in Bali’s real estate grew by 28.5 per cent since 2022.
The region has emerged as a global hub for property investors, offering annual returns between 10 per cent and 20 per cent.
After living in Bali for over a decade, developers Caroline Lassays and Stephane Zurini have started building a new housing complex, “the Havana Estate Bali ,” in Lovina, on the island’s northern part.
While Bali property prices have risen over the years depending on the area, they still remain significantly lower than the average of $820,000 for Australian homes, with properties ranging from $160,000 for a one-bedroom studio to $900,000 for a five-bedroom villa.
Lassays said establishing the complex in Lovina was a strategic move due to rising prices in the southern part of the island, which has gained popularity over the years.
“Bali has grown in popularity, with over 100 projects in the south leading to high land prices and cramped townhouse developments that offer little to no green space, where large houses are built on small plots – often just 200–300 square metres,” Lassays said.
“The south of Bali is also crowded with many people, heavy traffic, and high land prices, at the opposite the northern part of the island, is wilder, lusher, and significantly cheaper,” she said.
The couple now welcomes international investors in their Lovina complex, helping them buy and hold properties in Bali.
“The Havana Estate complex is located in a coconut grove that has been there already for more than 50 years; it’s very tropical and exotic.”
The project is set to have 10 villas and an apartment complex, half of which have already been built for foreign investors.
Zurini said that, in contrast to Western culture, properties in Bali are typically built off-the-plan and include furnishings, emphasising the need for investors to do their due diligence.
“It’s all about trust.”
“First impressions can feel right, but those beautiful 3D renders can be misleading, so buyers need to check what developers and builders have actually delivered thoroughly,” Zurini said.
He said that property owners should be cautious when investing on the island as homes are not pre-built and construction quality depends heavily on the builder.
Additionally, he stated that since foreigners cannot access local bank loans, investors should only work with developers with instalment payments to monitor progress and carefully ensure quality at each step.
“Building a house in Bali typically takes about a year. With the Havana Estate project, we ensure the house is ready for investors to use for themselves or as a rental,” he said.
Zurini said foreign investors in Bali can expect high returns on investment up to 20 per cent, calculated only on potential rental income.
“The projected returns don’t even factor in the future increase in property value. The team based their pricing model on input from friends who own hotels in the same area, using conservative room rates to ensure a good occupancy rate,” he said.
According to Zurini, investors should be cautious about where they invest, as many new townhouse developments may appear attractive but lack the authentic Balinese spirit.
Additionally, he said the growing oversupply could drive down rental demand, making the promised 15–20 per cent returns unlikely.
While the Indonesian government prohibits foreigners from owning freehold land, or ‘Hak Milik’, which permits indefinite land ownership, they can often secure a long leasehold.
Lassays said that in the southern part of the island, long leaseholds typically last around 30 years.
In comparison, the northern region of Bali permits foreigners to invest for over 80 years under the Hak Guna Bangunan lease.
With the 80-year leasehold, foreign investors create a company that holds their land and properties without going through a local intermediate.
“Then it becomes their land, they can do whatever they want with it: rent it, sell it, leave in it,” Lassays said.
She said that after 80 years, investors can renew their lease through a notary and will only have to pay the legal fees.
“Eighty years is a long time. The land and house will automatically go to the children or other family members without needing to pay further, as there is no tax on succession here in Bali,” Lassays said.
For property enthusiasts looking to invest in Bali, the couple recommends acting sooner rather than later, as the local government plans to halt and regulate development in the coming years.
“Bali’s unique way of life is a major draw for visitors, especially in North Bali, where the atmosphere is more natural and authentic, resembling the island’s past, with fewer nightclubs, beautiful places to stay, local ceremonies, friendly communities, and no traffic," she said
“As a result, tourists who once stayed in Lovina for just a couple of nights are now extending their visits to one or two weeks, enjoying its peaceful charm and many activities,” Lassays concluded.