Bali is a naturally beautiful island. The cost to build a house in Bali depends on the cost of building material, land cost, location, legal cost, and the cost of labor.
To build a house or villa and live in it is not cheap at all. If you know the location or live in Bali, these are the factors that can help you save some money and time.
A contractual obligation is patient when you decide to build a house in Bali. Choosing to build a villa in Bali is so expensive, but it feels like it is worth every penny after looking at its beauty.
The below article covers an in-house project of building a villa and its cost in Canggu of Bali.
Location is the only main influencing factor that affects the price of a property in Bel-Air or Bali. Therefore, you can choose Canggu, Seminyak, or Kuta to build your house. Here we mention the cost of a property as per a piece of information.
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How Much Does it Cost to Build a House in Bali?
A pool which is 5 min far from the beach with three bedrooms costs about $300,000. It is a mid-range villa and unfurnished. The total cost includes the leasing of land, labor cost, legal fees, etc. leasing a land of 240 sqm costs about $80,000. The lease is for 25 years and the per year cost is $1,500. $900 is the labor and building cost for sqm, and the total is $207,000. For bribes and legal costs, you have to spend $10600.
Here we provide simplified cost information of both a fully furnished house and also an empty plot.
Buying land in Bali Cost
“Indonesia’s land is a gift from God to the Indonesian people” – this is the official decree of Indonesia.
It means outsiders can not buy property or land anywhere. The easiest option to stay there for a long time is to do a leasehold agreement.
The legal agreement is for 25 years from the initial period. You have to pay the decided cost as per 100 sqm per year. The Hak Sewa is the right to build a pool and a property on your land which is included in the main cost.
In the middle of nowhere, an inland plot’s starting cost is around $400, and in some of the most desirable beachside destinations, the price goes up to $3500; as we said, location is the main element.
The total outlay for a 3 is plotted for 25 years, you have to pay $30,000 to $250,000 and more. Finding land for rent is so difficult in Bali.
The non-desirable locations command a premium and the best locations have been snapped up. There is no decrease in the land price even on the covid-19 pandemic. If you want to buy land at a minimum price, you always have to keep your eyes on the market movement.
It is a wise decision to invest in Nyang Nyang Beach (a secluded place) for the future because the cost of this place is affordable now. It is worth buying a less-residential place.
Buy a property through an agent
The estate agents of Bali are great sources of pieces of information and they are present in uncountable numbers in Bali.
They are ever ready to sell a leasehold property to you. You should bookmark a site run by a reputable group to verify the weekly cost fluctuations when you start your construction work.
You have to prepare to pay 5% to the agent if you lease it to an estate agent. If you plan to stay in Bali for more than 25 years, you have to pre-arrange the extension time.
According to law, the land with any improvement has to return to the owner, if the contract comes to an end. You can extend the stay up to 70 years; then you have to return it for free.
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Don’t use a nominee
To own land, a lot of forums help to find a local nominee for you. However, as per law, the land belongs to the nominee always, so this is not a good idea.
If the local nominee wants, he can legally evict you from the land and force you to pay double for the property. So it would help if you did not buy land by using the nominee protocol.
Otherwise, you may have to leave the property and lose everything.
Permissions and permits cost To build an House in Bali
You have to obtain an Izin Mendirikan Bangunan, a building permit, before buying land in Indonesia.
This permit comes to your hand in between 4 to 10 months after applying.
Without this, if you start your construction work, it is illegal. The IMB cost is up to $200 to $300. Generally, the architect pays the IMB cost and adds the cost in the Bill Of Quantity, and hands over the paperwork to you.
If you don’t pay all the taxes for the land, you can’t apply for IMB. The tax amount depends upon the land location and size.
The land cost can be negotiable while discussing with the landowner if there is any outstanding price.
In Bali, you have to apply for a license known as Pondok Wisata to build a house for rent. The outsiders have to get a nominee for the process. This process is legal and the landowner becomes the nominee.
$3500 is the average cost for this license. In this cost, you should include your contractor and the landowner.
Cost of the building manager and architects
While building a new villa or house, so many unpredictable things appear, and those matters are so hard to overcome in a foreign country.
In this case, you need to hire a local person with a lot of experience to look after materials, construction deadline, and allot contractors for the construction.
For this task, you should hire a local building manager or an architect.
In Bali, $15,000 to $20,000 could be the approximate cost of a local architect, which is 10% to 15% of the total construction cost.
The less reputable architects over-inflate the price regularly to push up their payment, which is the main problem.
This is an acceptable cost for many Indonesians, but it is possible for only those foreigners who have enough money and are ready to spend thousands of dollars.
An architect could be contracted for some typical work for a good performance. For example, $2000 to $3000 would be the typical cost of a qualified independent draughtsman for submitting and finishing the documentation work.
On the other hand, the price is double for an architect. But you can avoid the surcharges and delays by appointing an architect.
Cost To hire A project manager to build an home in Bali
The hiring of a project manager or building manager is a better option. He would have looked after the client’s interest and been loyal to the client.
If the project manager asks you to hire a local architect and do the building work themselves, don’t appoint that manager.
Possibly he would be the fraud. $20,000 is the exact cost as an architect and a project manager in Bali.
To avoid the lazy work and inflated prices of local contractors, you should hire a good building manager.
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Labor and material cost
For building a villa or house purposes, in Indonesia, labor cost is cheap. Many crews are looking for a project.
Per square meter, the construction cost, including material cost, should be $500 to $1000.
The price depends on the floorplan size of your villa.
$12,000 is the additional cost if you are planning for a pool. If you find a contractor who offers you to fix the cost of building a house, he is genuine. If the contractor insists you pay him as per the size of your property, then refuse to hire him.
Other professional costs
You have to be ready to pay some other professional fees besides the cost of a project manager and an architect. The professional cost depends upon the square meter. As per 200 sqm property, the prices are:
● Plumbing, mechanical, and electrical design cost – $1,700
● Structural engineering cost – $3,500
● Quantity surveyor cost – $1,200
Other costs Related On Building an house in Bali
When building a house in Bali, there are so many different expenses. There is a local village community in Bali. They demand $10 per month from the residents.
But if you are the villa owner, you have to contribute $100 per month to the community called Banjar. So for a 25 years lease, you would have to contribute $20,000 to the Banjar community.
Conclusion
It is not an easy task to build a house in Bali. Compared to Bali natives, the cost of leasehold for foreigners is higher, and it is so hard to find land.
To open the mail you sent to a government officer and grant it takes too much time.
All you have to do is keep waiting. It is a good idea to save some money by doing some legwork yourself.
But in Bali, it is also not possible. You have to prepare to spend more than 30% of your villa cost. If you are ready for a huge expense and have sufficient patience, then you can make a beautifully designed house with a bomb location.
