A Life of Freedom, Wealth, and Legacy

We are an organization specializing in facilitating the sale of villas in Bali. Our mission is to ensure a safe and profitable investment in properties on this exotic island.

Purchasing a villa in Bali can be a highly lucrative investment that can significantly improve your life—if you proceed with caution, as it can also bring considerable challenges. We ourselves had a dream of owning an investment property abroad and chose Bali.

We decided to fly out and view a villa for sale that we had selected. The offer was prepared by Czech developers, so we assumed everything would go smoothly. However, the reality was quite different. While the villa looked stunning in pictures, we soon noticed several red flags. It was located four hours from the airport in a remote area with no amenities, yet it was priced comparably to the most premium locations. When it came time to sign the contract, we found it completely unacceptable—surprisingly, many investors had signed it regardless. The entire complex had over 30 villas, which remain unfinished to this day.

This experience didn’t discourage us; instead, it motivated us. We successfully purchased a villa elsewhere and, during the process, established partnerships with professional and reliable partners who adhere to the high-quality standards we are accustomed to in the European Union. Our experience and success attracted the interest of other investors seeking a safe way to buy a villa in Bali. Thus, Kokowa was born.

Thanks to our experience and carefully selected network of partners, we now offer you a safe and transparent process for purchasing a villa in Bali. We’ll help you avoid pitfalls and ensure you can fully enjoy your investment.

Yes, foreigners can purchase villas in Bali.

You can own a villa with the caveat that, as a foreigner, you cannot own land in Indonesia unless you are a citizen. However, this is not an issue—villas can be acquired through a long-term lease (Hak Pakai) for up to 80 years or via nominal ownership with an Indonesian citizen. Typically, a lease is arranged for 30 years with the option to extend for another 30 years at a pre-agreed price.

• Comparisons:
  • USA: A two-bedroom condo in Miami and a $1 million property in California as reference points.
  • EU: A small apartment in Paris and a €900,000 apartment in Berlin for context.
  • Australia: A suburban house in Sydney and a AUD 1.2 million house in Melbourne.
  • Bali: one-bedroom vila in a prime location starts at $150,000

No, it is not necessary to be physically present in Bali. Most properties are now sold online, often via WhatsApp—what a time we live in! However, if you are in Bali, it’s ideal to visit the property in person to get a true sense of the villa and its surroundings.

For signing contracts or other legal procedures, you can appoint a representative to act on your behalf as your proxy—we are happy to arrange this service for you.

Nevertheless, we strongly recommend visiting the villa in person before making an offer to verify its condition, surroundings, and overall atmosphere. This minimizes risks and ensures your investment meets your expectations.

How long does it take to finalize the purchase of a villa in Bali?

The process of purchasing a villa in Bali typically takes about one month if everything goes smoothly. Below is a detailed overview of each step, including additional details for completeness:

1. Property Selection and Signing the Letter of Intent (LOI)
   Once you select a villa, a Letter of Intent (LOI) is signed, specifying which property you wish to buy, at what price, and under what conditions (e.g., timeline, payment method). This document is not legally binding but serves as the basis for further negotiations.
2. Deposit
   A deposit of 10% of the total purchase price is transferred to a notary escrow account. This amount is secure and will be refunded if the transaction is canceled due to an unsuccessful legal review.
3. Due Diligence
   The notary conducts a thorough legal review (Due Diligence), which includes verifying ownership rights, the legal status of the land, building permits, and other relevant documents. This process can take 1–2 weeks, depending on the complexity of the case. If issues are found, your deposit is returned, and the transaction is canceled. If everything is in order, the process continues.
4. Signing Contracts
   • For an existing villa, a long-term land lease agreement (Leasehold Agreement) is signed, typically for 30 years with an option to extend (e.g., another 30 years at a pre-agreed price).
   • For a new construction, a Construction Agreement is also signed, specifying the construction terms, timeline, and quality guarantees.
   • At this stage, the remaining purchase price is paid.
5. Transfer of Rights and Completion
   After signing the contracts and paying the full amount, the notary ensures the registration of leasehold rights in your name with the relevant authorities. This step can take a few days to a week, depending on the efficiency of local authorities. Upon completion of the transfer, you receive all documents confirming your rights to the property.

Duration:
The entire process, from signing the LOI to final closing and transfer of rights, usually takes approximately 4–6 weeks, assuming no legal or administrative complications arise. In some cases, such as more complex reviews or delays with authorities, the process may take slightly longer.

Our Support:
Our organization, Kokowa, provides comprehensive support at every step—from selecting the property to securing a reputable notary and legal team, as well as reviewing contracts and partners. We help you minimize risks and ensure the process is smooth, transparent, and secure, whether you’re in Bali in person or handling it remotely.

Mortgages for foreigners are available through some Indonesian banks, such as Bank Mandiri or Bank Central Asia (BCA), but the conditions vary depending on the bank and the type of property.

• Deposit: Most banks require foreigners to provide a deposit of 30–50% of the property’s value. For example, for a villa worth 300,000 USD, you would need to deposit 90,000–150,000 USD.
• Interest Rates: Interest rates for foreigners are typically higher than for locals, often ranging between 8–12% per year, depending on the bank and loan term.

Kokowa does not currently provide services directly related to arranging mortgages.

Alternatives to a Mortgage

• Own Funds: Many foreigners opt to pay in cash to avoid the complexities of mortgages. This is common, especially for more affordable properties or in less touristy areas.
• Developer Financing: Some developers in Bali offer payment plans directly to buyers, often with a lower initial deposit (10–20%) and the remaining amount spread over 1–5 years. However, these plans may come with higher interest rates or hidden fees.
• International Loans: Some foreigners take out a mortgage in their home country and use it to purchase a villa in Bali. However, banks often require the property to be pledged as collateral within the home country, which can be a limitation.

Indonesia, and Bali in particular, is experiencing a sort of “gold rush of the Wild East.” With the growing popularity of real estate investments, unfortunately, there are also many dishonest individuals preying on unsuspecting investors. That’s where we come in—to guide you through the purchase process safely and with confidence.

We’ll help you select a reputable notary who will ensure clear and legally sound ownership titles. Our legal team will thoroughly review and provide feedback on all contracts to ensure you don’t sign anything that could jeopardize your investment. We work only with vetted partners who guarantee you won’t end up buying a “pig in a poke.” With us, you can be confident that your investment in a villa in Bali will be both profitable and secure.