Renting vs Buying in Bali: A Cost Comparison Over 10 Years
Which makes more sense: renting a villa at IDR 300 million per year or buying for IDR 12 billion? We did the math.
Komang Suarjana
Investment Advisory Lead
Scenario: a three-bedroom Canggu villa, annual rent IDR 300 million or purchase price IDR 12 billion (25-year Hak Sewa). Over 10 years: total rent IDR 3.75 billion (assuming 5% annual rent inflation), with no remaining asset value. Purchase: IDR 12 billion + IDR 900 million transaction costs + IDR 600 million maintenance = IDR 13.5 billion total cost. However, the 15-year Hak Sewa remainder at year 10 is still worth around IDR 7–8 billion (assuming 4% annual appreciation). Net purchase cost: IDR 5.5–6.5 billion, slightly more expensive than renting, but you get the flexibility to stay any time. For someone in Bali less than 6 months a year, renting is more efficient. For someone in Bali more than 8 months a year, buying wins.
