Buying
Rent or Buy in Bali? About Seven Years of Rent Buys a 25-Year Lease
A completed 2-bedroom leasehold asked 7.4 years of the median 2-bedroom rent on 6 October 2026. What that ratio does and does not mean.
Updated 6 October 2026 · 3 min read
Years of rent needed to buy the lease
Each row divides the median asking price of a completed leasehold villa by twelve months of the median asking rent at the same size. Both sides come from the same partner agencies on the same day. Many of the rents are monthly-term prices; a yearly contract would cost less, which pushes these ratios up, not down.
| Size | Leasehold price | Rent / month | Years of rent | Median lease |
|---|---|---|---|---|
| 1-bedroom | IDR 2.13bn (64) | IDR 25.5m (102) | 7.0 | 25 years |
| 2-bedroom | IDR 3.54bn (130) | IDR 40.0m (234) | 7.4 | 25 years |
| 3-bedroom | IDR 5.30bn (95) | IDR 55.0m (183) | 8.0 | 25 years |
The cost of owning, per year
Owning a leasehold has three yearly costs that renting does not. The lease runs down: IDR 3.54 billion over 25 years is about IDR 142 million a year of value consumed, before anything else. The money is tied up: every 1% it could have earned elsewhere is another IDR 35 million a year. And the owner pays for upkeep, annual land and building tax (PBB) and repairs that a landlord would otherwise carry.
Against that, the renter pays about IDR 480 million a year for the median 2-bedroom on a monthly basis. The owner’s yearly cost is lower on these numbers — but it only becomes a saving once the one-off costs are recovered: BPHTB of up to 5% of the price and notary fees on the way in, and a seller’s tax and agent commission on the way out if you leave early.
When renting is the better answer
Renting for at least a year first is the cautious default when any of these apply:
- Your visa or work situation could change within five years.
- You have not yet lived through a wet season in the area you are considering — Canggu flooded twice in September 2025.
- You would have to buy a short lease to make the numbers work; per year of use, short leases are the most expensive.
- The cash would otherwise sit in an investment you understand better than Bali property.
Common questions
Is it better to rent or buy in Bali?
It depends mainly on how long you stay. On 6 October 2026 a completed 2-bedroom leasehold asked about 7.4 years of the median 2-bedroom rent for a 25-year lease; that favours buying for long stays, after acquisition costs and the lease running down, and renting for short or uncertain ones.
How much does it cost to own a villa in Bali per year?
For a IDR 3.54 billion, 25-year leasehold, about IDR 142 million a year of lease value is consumed, plus upkeep, PBB land tax and the return the cash could earn elsewhere — roughly IDR 35 million a year for every 1% forgone.
Can a foreigner buy a house in Bali to live in?
Yes, through a leasehold, or Hak Pakai with a KITAS or KITAP. Hak Pakai for a house carries a reported minimum price of around IDR 5 billion; a leasehold has no such floor.
How long should I rent in Bali before buying?
At least a full year, including a wet season, in the area you are considering. It shows you the drainage, traffic and neighbours that a viewing cannot.
Medians over completed leasehold villas and priced villa rentals listed by Baliestate’s partner agencies as extracted on 6 October 2026. A median-to-median ratio across different properties, not a matched comparison; asking prices, not transactions. Not financial advice.