According to REI (Real Estate Indonesia), the growth of real estate in Bali is more significant than other cities in Indonesia, comparable to Jakarta and Surabaya. Bali Real Estate rental and investment take advantage of international tourists who decide to spend their day in Bali whether it’s temporary or permanent.
But because foreigners might be unfamiliar with the system and laws regarding the property in Indonesia, many fraud and scams had been committed by the local agents taking advantage of gullible people. These irresponsible individuals ended up causing a lot of trust issues within foreigners and local tourists alike.
How does the fraud work in Bali Real Estate Rental and Investment?
There are many cases of deceit among property business, for example, there’s someone who got tricked into transferring DP about half of the property value before even surveying the place first. Based on Indonesian rules, every property no matter what type or kind must only have 5% DP before the buyer and owner can close the deal.
The suspects are really convincing while doing their “work”. So no matter how nice the agent might be when you’re about to purchasing or renting a property always be on your guard and pay attention to what they are saying. Not to be skeptical or anything, but it’s best to keep your distance first unless you really trust the person.
And the other thing that quite dangerous and popular among the Indonesian crime method is hypnotism. In Java, there’s a lot of scam and fraud cases by hypnotizing the target, the offender only needs to ask a couple of questions and suddenly the victim feels like doing anything to him/her. In Bali, this case is not really often happened, but stay vigilant in case someone finally resorts to using this method.
Advice to prevent being tricked
Find a trustworthy source every time you wanted to check out a real estate. Even buying things like electronic devices require careful research first let alone spending a large sum of money on properties. Check the background of the agent first or ask for a card to ensure that the person is legit.
Also don’t just blindly take bait from an offer that sounds suspicious. No matter how popular the growth of real estate in Bali, the property is not going to have a huge drop in price because of the huge demand. Small discounts or an extra gift may be normal but beware if someone offers property with price that way different from the market.
Taking interest in Bali real estate rental and investment is good, but you should be more careful while browsing for your preferred property. Indonesia might not be the country with the highest rate of crimes, but there’s still a lot of shady people out there looking for an opportunity to rob clueless buyers. Stay Safe!