Melbourne couple Sarah and James Carter had always dreamed of owning a villa in Bali. After years of visiting the island and falling in love with its culture and relaxed lifestyle, they decided to take the leap and invest in a property in Canggu. Now, they’re not only enjoying their own tropical retreat but also benefiting from a smart financial move.
Like many Australians, Sarah and James were drawn to Bali not just for its beauty but for its investment potential. The island’s thriving tourism industry meant they could generate rental income while having a holiday home whenever they wanted. “We’d always joked about buying a villa in Bali,” James said. “But once we started looking into it, we realised it was actually a great opportunity.”
The couple spent months researching Bali’s property market. Since foreigners cannot own freehold property in Bali, they opted for a leasehold agreement, which typically lasts 25 to 30 years with the option to extend. After researching multiple properties, they settled on a stylish three-bedroom villa in Canggu, one of the most popular areas for expats and tourists. “Canggu was perfect for us,” Sarah said. “It has a great community, amazing cafés, and a strong demand for short-term rentals.”
Purchasing a property in Bali had some challenges, but the couple ensured they worked with a trusted notary and legal consultant to handle the process. “We wanted to make sure everything was done properly,” James explained. “Understanding the leasehold structure, setting up a local company (PT PMA) for rental operations and knowing the tax requirements were all important steps.”
Once they had secured the villa, Sarah and James focused on making it a high-performing short-term rental. They partnered with a professional management company to handle bookings, maintenance, and guest services. “We wanted to create a boutique experience,” Sarah said. “So we invested in quality furnishings, a private pool, and strong branding through social media and booking platforms.” Within six months, their occupancy rates were higher than expected. “The Bali rental market is booming,” James said. “During peak season, we’re fully booked, and even in quieter months, we still get consistent bookings.”
The couple’s total investment—including the villa, renovations, and setup—was around AUD 400,000. Within the first year, their rental income covered a large portion of their costs, and they expect to recover their full investment in five to seven years. “The returns are stronger than what we’d get from a rental property in Australia,” James said. “And the best part is, we get to enjoy the villa ourselves.”
Looking back on their experience, Sarah and James highlight the importance of preparation and working with reliable professionals. Their top tips for Aussies thinking about investing in Bali include doing thorough research, working with reputable real estate agents and legal professionals, considering property management to maximise occupancy rates, budgeting for extra costs such as taxes and maintenance, and thinking beyond financial returns to ensure it’s also a lifestyle investment.
For Sarah and James, buying a villa in Bali has been one of the best decisions they’ve made. “It’s given us the best of both worlds,” Sarah said. “A solid investment and a beautiful place to escape whenever we want.” With Bali’s property market continuing to attract Australian investors, their experience shows that, with careful planning, owning a villa in paradise can be both a dream and a profitable reality.
