With its lush landscapes, vibrant culture, and consistent tourist appeal, Bali has become a hotspot for Australians looking to diversify their investment portfolios. If you’ve been wondering how to invest in property in Bali as an Australian, you’re not alone — interest in this market continues to grow.

But while the island lifestyle and strong returns are appealing, investing in Indonesian property requires navigation of local laws, cultural nuances, and financial considerations.

In this comprehensive step-by-step guide, we’ll walk you through the process — so you can invest with confidence, protect your interests, and maximise your potential returns.

Step 1: Understand the Legal Pathways for Australians

As an Australian, you cannot directly own freehold land in Bali. Indonesian law reserves freehold titles (Hak Milik) for Indonesian citizens only. However, there are several secure and legal ways for foreigners to invest in property, the most common is through long term leasehold ownership:

Leasehold (Hak Sewa)

This is the most common and straightforward method for Australians. Leasehold agreements allow you to lease a property for long periods, typically for 25 years, often with the option to extend. While you won’t own the land, leasehold still allows for significant use rights and investment value, especially in popular tourist areas.  Leasehold contracts are a legal asset that you can on-sell to another party or bequeath in estate proceedings.

Step 2: Choose the Right Location for Your Investment Goals

Bali offers a range of regions that cater to different types of investors. The right location will depend on your goals — whether you’re looking for rental yield, capital growth, lifestyle, or a combination of all three.

Seminyak

Upscale and established, Seminyak is popular with tourists seeking luxury villas, designer shopping, and fine dining. Properties here come at a premium but deliver consistent demand.

Canggu

Trendy and fast-growing, Canggu appeals to digital nomads, creatives, and younger travellers. Its blend of surf culture, cafes, and community makes it a hotspot for modern villas and short-term rental income.

Ubud

Surrounded by rice terraces and spiritual retreats, Ubud is ideal for wellness-focused developments and eco-accommodation. It attracts a different type of traveller — one seeking nature, calm, and connection.

Jimbaran & Uluwatu

These southern coastal areas offer clifftop views, luxury resorts, and growing infrastructure. Perfect for boutique resorts or high-end holiday homes.

Sanur

Quiet, clean, and family-friendly, Sanur attracts retirees and families. If you’re considering a lifestyle investment for personal use less crowded, this is a strong contender.

North Bali

This region is less developed and more affordable, but infrastructure improvements (like the planned North Bali Airport) are driving curiosity to invest.

Step 3: Work with Trusted Local Professionals

Unlike buying property in Australia, investing in Bali requires a strong team of local experts to ensure your investment is safe and legally sound.

• Legal Advisors: An experienced property lawyer who understands both Indonesian and international law is essential. They will review contracts, verify ownership, and ensure compliance with visa, title, and tax regulations.

• Notary (PPAT): All property transactions must be formalised by a licensed notary, who ensures that documents are valid and submitted correctly to Indonesia’s land registry.

• Real Estate Agents: Choose a reputable agency with local knowledge and a proven track record. A good agent can guide you through local market conditions, price trends, and occupancy strategies.

• Tax Consultant: A tax advisor familiar with the Indonesia–Australia Double Taxation Agreement can help minimise your liability and keep you compliant in both jurisdictions.

Through our network, Bali Property Investment, we have all of the above covered for you through our team of experienced and licenced professionals.

Step 4: Secure Your Financing

Indonesian banks rarely offer mortgages to foreigners, so most Australians fund Bali property purchases through one of the following:

Cash Purchase

The most straightforward option — it avoids bureaucracy and allows for faster settlement. If you have access to liquid funds or plan to downsize or reinvest Australian property proceeds, or have funds from a settlement or divorce, this can be an ideal route.

Equity Release

You may be able to release equity from your Australian home or investment property. This is a popular strategy for investors who want to leverage Australian Real Estate equity that has already appreciated in value.

Self-Managed Super Funds (SMSFs)

Australians use SMSFs to purchase international property. However you must use a compliant professional to assist you with this process to comply with ATO rules. 

Through our Bali Property Investment network, we can connect you with mortgage brokers that are experienced with cash out equity release for investment purposes overseas and licensed and qualified SMSF experts.

Step 5: Perform Due Diligence

Don’t skip this step.

• Review locations: Understand what is located in tourism hotspots by researching Google Map locations and researching where tourists flock to on holiday by looking at social media and travel blog sites.

• Inspect the Property: Ideally, come on over on holiday to Bali and view the developments in person, plus meet with our local team at the office in Seminyak.

• Check Occupancy & Average Daily Rates: Desktop research of booking.com and sites like Airbnb can give you evidence of average daily rates for popular accommodation in prime locations such as Seminyak and Canggu. Occupancy is reported on a monthly basis to the government and tourism industry associations.  In the last 12 months, the average occupancy for Bali for all types of accommodation was 75%.  Please review the independent research report by Horwath and the research report by Colliers.

• Review Testimonials: Clarify the experience of other Australian property investors in Bali who have invested through our network by reviewing testimonials.

Step 6: Finalise the Purchase

When everything is feeling comfortable for you, you’ll move through these stages:

Watch our two essential education videos on our website

a. Financial Coaching Money Management Investment Secrets Explained

b. The ins and outs to property investment in Bali - and specifics on The Beraban Luxury Lofts in Seminyak, Bali

Then: Book a discovery call to check you qualify with a funding source to invest in Bali

Yes, I’m in, what happens next?

1. You'll meet with our Property & Financial Strategist to understand how investing in cash flow positive property in Bali fits your specific goals. (optional)

2. Review property investment options via Bali Real Estate for sale - Geonet Property & Finance Group partner projects within your budget

3. Fill out your contact details to reserve a fractional or full investment via our online website

4. Pay the holding deposit online. $727 AUD

5. Submit a copy of your passport within 48 hours of paying the holding deposit (this is required for an ID verification check).

6. Receive a welcome pack that outlines the process from expression of interest through to property exchange.

7. Once passport/s have been received, you'll be issued with draft purchase agreements for your review. This will officially begin your 2-week review and due diligence period.

8. Due Diligence Period (Approx 2 Weeks) - The two-week due diligence period is designed to give you time to thoroughly review all aspects of the contract. If you have any questions or would like to discuss the details further, we’d be more than happy to arrange follow up meetings with our client services team and connect you with a complimentary session with a local lawyer.

9. Contract Signing Process - Once the due diligence period has passed and you've confirmed to proceed, we will send your contract to e-sign online. 

10. Arranging Finance - We understand that if you’re purchasing through a Self Managed Super Fund (SMSF) or securing funds through an equity release, there may be delays waiting for funding to become available. This is completely fine, and we are flexible and understanding of your unique circumstances. Once your funds are ready, we’ll proceed to finalise the payment and exchange process.

11. Invoice for Balance Owing

12. Once you confirm that funds are ready, we will issue your invoice to transfer the amount for the property purchase. Please note that the invoice will be valid for 2 days (due to currency fluctuations) so the timing of issuing you the invoice will not happen until you have access to your funding and are ready to transfer.

13. Exchange on your property investment purchase in Bali

14. Once your funds have been received, we will notify you by email. At that time, you will receive another DocuSign for your Bank Revenue Form, where you can specify the account details for your returns. After completing this form, you will receive your confirmation of exchange email, which will include signed copies of your contract, your receipt, and your returns payment schedule.

15. Congratulations, you are now a property owner in Bali!

Learning how to invest in property in Bali as an Australian involves more than just choosing the right hotel or villa — it’s about making informed decisions, protecting your investment, and understanding the market’s unique dynamics.

If you’re ready to start your Bali property journey and want clarity at every step, our team is here to help. From due diligence to legal structuring and long-term strategy, we help Australians navigate Bali’s property market with confidence.

Let us help you turn your island dream into a solid investment reality.

Discover money management investment secrets and more information on the ins and outs of Bali property investment by accessing our educational video content.

Head to our main website to get started: balipropertyinvestment.com.au