You’ve finally fallen in love with the Bali lifestyle—beaches, sunsets, and the relaxed pace of life 🌅✨ But now comes the big question: should you rent or buy your dream home in Bali?
Many foreigners jump into renting long-term villas or even buying land without fully understanding the legal risks, hidden costs, or lifestyle impacts 😬 One wrong move could cost you more than just money—it could affect your entire experience living in paradise.
This blog breaks down the pros and cons of renting vs buying in Bali so you can make the smartest choice based on your budget, visa status, and future plans ✅ Whether you’re staying short-term or planning to settle down, we’ve got the info you need.
“We bought a villa in Canggu too early,” says Sarah from Australia. “If we’d rented first, we would’ve realized we preferred Ubud’s peaceful vibe. Now we’re stuck with monthly upkeep on a place we barely use.” 😟🏠
For example, did you know foreigners can’t legally own freehold land in Bali without complex legal arrangements? 😲 And that long-term rentals often include staff and full furnishings, saving you tons on setup costs?
Ready to figure out which option fits your Bali lifestyle best? 🏡🌴 Let’s explore everything you need to know to make a confident, informed decision today!
Table of Contents
- Should You Rent or Buy a Villa in Bali with Your Family?
- Legal Restrictions for Foreigners Buying Property in Bali
- Estimated Cost Comparison: Renting vs Buying Over 5 Years (for a Couple with 1 Child)
- Hidden Costs You Might Not Expect When Buying a Villa
- Pros and Cons of Long-Term Villa Rentals in Bali
- What Happens to Your Investment if You Leave Bali?
- How to Avoid Scams When Renting or Buying Property
- FAQs About Renting and Buying a Home in Bali
Should You Rent or Buy a Villa in Bali with Your Family?
Imagine waking up to birds chirping, ocean breeze, and your kids playing barefoot in a lush garden 😍🌿 That’s life in Bali! For many foreign families, it feels like paradise.
But the decision to rent or buy a villa isn’t always clear-cut. Renting offers flexibility—you can change locations, try different neighborhoods, and avoid legal headaches.
Buying, on the other hand, could provide a sense of ownership and long-term savings if done right. The key is knowing what works for your lifestyle, visa status, and financial goals. Let’s unpack the differences 🤔
Legal Restrictions for Foreigners Buying Property in Bali
Before you even think about signing a purchase agreement, know this: foreigners cannot own freehold land in Bali — period. ❌ The legal workaround?
Leasehold titles (typically 25-30 years), Hak Pakai (Right to Use), or owning via a PT PMA company structure. These are legitimate but come with legal complexity, fees, and maintenance requirements. Using a local nominee is illegal and risky — you could lose everything if something goes wrong.
If you plan to buy, make sure you have a great notary, a property lawyer, and full understanding of land certificates (SHM, HGB, etc.) 📄🔒
Estimated Cost Comparison: Renting vs Buying Over 5 Years (for a Couple with 1 Child)
Your cost comparison for renting versus buying a 2-3 bedroom villa with a pool and staff in Canggu over 5 years is well-structured and highlights the financial trade-offs clearly. Let’s break it down further to ensure clarity and address any potential gaps, while also considering the context for a couple with one child.
I’ll use your figures and assumptions, converting all costs to USD for consistency (using your exchange rate of approximately IDR 15,277 per USD, derived from IDR 4.5 billion = $295,000).😅
Renting Costs Over 5 Years
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Annual rent: $18,000 (IDR 275 million/year).
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Total rent over 5 years: $18,000 × 5 = $90,000.
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Additional costs: Typically, renting a villa in Canggu with a pool and staff includes utilities, maintenance, and staff salaries in the rental price, as this is common in Bali’s expat villa market. If these are not included, you might add:
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Utilities (electricity, water, internet): ~$1,500–$2,000/year.
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For simplicity, let’s assume these are included in the $18,000/year, as is typical for fully serviced villas.
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Total renting cost: $90,000 (no additional taxes or major maintenance, as these fall on the landlord).😅
Buying Costs Over 5 Years
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Purchase price: $295,000 (IDR 4.5 billion).
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Additional upfront costs (10% for taxes, notary fees, renovations): $295,000 × 0.10 = $29,500.
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Total upfront cost: $295,000 + $29,500 = $324,500.
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Ongoing costs (maintenance, staff, property taxes): $6,000/year × 5 years = $30,000.
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This includes pool maintenance, gardening, security, staff salaries, and property taxes (PBB, which is relatively low in Indonesia, often under $1,000/year for a villa of this value).😅
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Total ownership cost before selling: $324,500 + $30,000 = $354,500.
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Sale after 5 years: Assuming the property is sold for $275,000 (as you noted, reflecting market stability or slight depreciation), you recover $275,000.
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Net ownership cost: $354,500 – $275,000 = $79,500.😅
Comparison
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Renting total cost: $90,000.
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Buying net cost (after selling): $79,500.
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Difference: $90,000 – $79,500 = $10,500 (renting is more expensive by $10,500 over 5 years).
Your calculation suggested a $265,000 difference, which seems to stem from comparing the gross ownership cost ($355,000) without accounting for the resale value ($275,000).
When factoring in the resale, buying appears slightly cheaper than renting over 5 years, contrary to your conclusion that renting is more cost-effective by a large margin.😅
Hidden Costs You Might Not Expect When Buying a Villa
Buying sounds glamorous, but wait until the bills start coming 😅
Expect pool and garden upkeep, banjar fees, staff salaries, building permits, and luxury tax (PPnBM) if the villa is worth over IDR 5 billion.
Add property insurance, management fees, and potential legal renewal costs if you’re using leasehold or a PT PMA. Some areas also require contributions to local temple events or ceremonies
— it’s part of the culture! These costs can stack up to $5,000–$10,000/year easily. If you’re not in Bali full-time, you’ll also need a trusted property manager 🚫💼
Pros and Cons of Long-Term Villa Rentals in Bali
Renting is simple and comes with perks 🚀 Most long-term rentals are furnished, come with staff, and don’t require big upfront costs.
Contracts are usually 1-5 years, and you can negotiate renewals. Plus, it’s easy to try different areas before committing.
The downsides? You’re subject to landlord rules, rent increases, or changes in availability. Also, you don’t gain equity. But if you want ease, flexibility, and less risk, renting is ideal—especially for families still exploring life in Bali 🏡🚗
What Happens to Your Investment if You Leave Bali?
Let’s say after 3 years, your family decides to relocate 🚨
If you’re renting, you simply give notice and go. If you own property, it’s not that simple. Selling can take time, and the market isn’t always in your favor. You may have to keep paying staff and upkeep while trying to find a buyer.
Renting it out could be an option, but only if you have licenses and a reliable agent. If not, your investment could sit empty—or worse, be misused. Flexibility is one of the biggest advantages of renting in Bali 🚪
How to Avoid Scams When Renting or Buying Property
Unfortunately, real estate scams do happen in Bali ❌ Watch out for fake agents, double-booked rentals, and unclear land titles. Always verify property ownership via land registry (BPN), avoid cash-only deals, and demand written contracts.
Use expat-recommended agents, and never rely on WhatsApp promises alone. For buyers, hire a trusted notary and lawyer who speaks your language.
And never use a nominee without knowing the full legal risk. Protect your money, your family, and your future 🚫📄
FAQs About Renting and Buying a Home in Bali
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Can foreigners buy freehold property in Bali?
No, only leasehold or Hak Pakai are legal options for foreign buyers.
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What visa do I need to rent long-term?
KITAS, investor, or retirement visa is best.
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Is buying a villa a good investment?
Only if you plan to stay long-term or manage it as a licensed rental business.
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Can I renovate a rental villa?
Sometimes, but only with written permission from the landlord.
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Are pets allowed in rentals?
Usually yes, but always check the rental agreement 🐾
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What are the safest areas for families?
Sanur, Ubud, and Berawa are top picks for family-friendly neighborhoods with schools and community support.
