Many Australians consider investing in property abroad for lifestyle upside and portfolio diversification. Overall, Australian investment abroad has risen from 326.9b USD in 2023 to 4,970.6b USD in 2024.
Buying property overseas can work, but only when the numbers, rules, and on-the-ground reality line up. Therefore, this article will cover one area recommended for overseas property investment from Australia.
We’ll use Indonesia, especially Bali, as the most common target market Australians ask about, so the mistakes feel practical. In 2025, Antara recorded 6,948,754 direct foreign arrivals in Bali, signalling a high demand and ROI potential on overseas property investment from Australia.
The opportunity for property investment in Indonesia is wider than holiday rentals. Australians often look at leasehold villas, retirement homes, and property tied to business expansion, which changes how you should model risk and cash flow.
This guide breaks down 4 common mistakes people make when they invest in property abroad, and each one ends with what to verify before you shortlist anything.
Ready to compare options with less guesswork? Explore Indonesia opportunities and connect with vetted, reliable real estate agent partners via IndoProperty Hub.
Mistake #1: Neglecting to Research Local Market Conditions
Understanding real estate trends in Indonesia
One of the most common errors when investing in property abroad is treating a country as a single market. In reality, Indonesia operates as multiple micro-markets. The Bali property market alone differs sharply between Canggu’s short-term villa demand, Sanur’s retirement housing profile, and Uluwatu’s lifestyle-driven developments.
Price growth and supply patterns also vary. According to Bank Indonesia’s Residential Property Price Index (RPPI), overall national residential property prices grew 1.74% year-on-year in Q4 2023. This indicates modest but stable movement, yet prime tourism zones can behave differently from the national average.
Before flying in, Australians should run a simple trend sanity check:
- Recent residential price growth by city
- Building permit issuance trends (new supply indicator)
- Short-term rental occupancy benchmarks by area
- Infrastructure developments (toll roads, airports, ports)
- Local zoning rules affecting renting in Bali
Structured your property investment research via Indo Property Hub [https://example.com] or Bali neighbourhood to help validate offers and pricing made by real estate agents Bali.
Best places to invest in property abroad
Skip “top 10” lists. The smartest approach is matching location to your goal, because the demand engine is different in each market.
Use this simple framework:
- Jakarta, if you want a business base and exposure to office demand, expat leasing, and corporate-driven activity. 57,02% of Indonesia’s GDP in 2024 is heavily concentrated on Java, which supports Jakarta’s role as the commercial anchor.
- Surabaya, if your strategy ties to logistics, trade, or an industrial footprint. It is supported by its proximity to Tanjung Perak. It’s a major port-linked city in East Java, which matters for warehouse, factory, and supply-chain real estate.
- Bali, if your focus is lifestyle-led demand and holiday-rental performance, where neighbourhood fit often drives pricing power more than “national averages”.
This is how to think about the best places to invest in property abroad without getting pulled into hype cycles.
Local regulations and cultural factors in Indonesia
Indonesia can be attractive for Australians, but it’s non-negotiable on structure, permits, and local norms. If you get these wrong, the impact is real: delayed handovers, blocked operations, or contracts that don’t protect you when something goes wrong.
Watch these red flags before you pay anything:
- Unclear land status or inconsistent ownership documents
- Missing key permits (or “permits later” promises)
- Pressure to transfer a “rush deposit” to lock the deal
- Vague lease renewal terms (pricing, timing, control)
- No written scope for management (fees, reporting, responsibilities)
- No clear dispute clause or legal jurisdiction language
Use a due diligence checklist, foreign-buyer basics, and an ownership type explainer so you can verify claims early before you rely on any agent, developer, or operator.
Mistake #2: Underestimating Costs Involved
Hidden costs of buying property overseas in Indonesia
The biggest budgeting mistake in investing in property abroad is treating the purchase price as the real cost. In Indonesia, especially the Bali property market, returns often depend on operating discipline, not sales pitches from real estate agents in Bali.
Use this cost matrix as a baseline for a Bali rental-style asset and adjust by size and service level
| Cost line | Typical range | Notes |
| Property management | 10% to 40% of rental income | Some firms charge a flat rate around IDR 4 million per month |
| Airbnb host platform fee | Around 3% | Split fee model for most hosts |
| Staffing baseline | UMP reference IDR 2,996,561 per month | Bali provincial minimum wage for 2025. This wage is applicable to one staff member. If you are going to hire five staff members, you will spend approximately 15 million IDR per month. |
Match the cost plan to the asset type. For instance, villas need stronger operations for guest turnover. Meanwhile, houses for retirement planning often run on longer leases and different upkeep.
Additionally, office space for PMA and business expansion adds fit-out, utilities, and compliance overhead. Lastly, warehouses and factories depend on access, power reliability, and ongoing site maintenance.
Currency fluctuations: Rupiah vs AUD, invest in Indonesia with IDR is recommended
Many expenses for renting in Bali sit in Indonesian rupiah, so planning in IDR first is recommended, then converting to AUD for personal cash flow.
Two-scenario check
- AUD strengthens. Entry price and ongoing IDR costs become cheaper in AUD
- AUD weakens. The same IDR budget costs more in AUD and reduces net returns
Therefore, always check the currency fluctuations to budget your cost models
Financing options for overseas investments in Indonesia
Most Australians tend to explore cash, releasing equity at home, using a local bank, or applying with an overseas lender. HSBC lists these four common paths and notes that suitability depends on your situation and the property structure:
- Arrange an overseas mortgage from your local bank
- Apply for a mortgage from an overseas lender
- Release equity from your own home to buy a property overseas
- Use your savings to buy a property overseas
Confirm these early checklists:
- Repayment currency
- Approval timeline versus contract timeline
- Deposit expectations
- Legal structure requirements
This is a key part of how to invest in property abroad without losing time and fees late in the deal.
Mistake #3: Failing to Consider Legal and Tax Implications
Tax obligations on rental income abroad in Indonesia
Before you earn rental income abroad, go to your tax advisor with facts, not assumptions. This protects your net return and keeps reporting clean for investing in property abroad advice.
Bring this checklist
- Ownership structure and who signs contracts
- Expected income by use case and seasonality
- Expense categories with invoices and bank trails
- Holding period and exit plan
- Where cash is received and in what currency
Tax estimations to confirm, based on asset type
- Villa used for renting in Bali and short stays
- Likely Indonesian final income tax on rent at 10% of gross.
- Possibly VAT exposure at 11% on rental transactions if the operator is a taxable entrepreneur, depending on the setup.
- House on a longer lease
- Likely the same 10% final income tax on gross rent [https://www.pajak.go.id/index.php/en/withholding-income-tax-article-42-corporate-taxpayer]
- Office or warehouse leased to a business
- Likely 10% final income tax, and VAT at 11% may apply, depending on registration and invoicing
If you are an Australian tax resident, the ATO expects you to declare overseas rental income according to IT 2167 Income Taxation Ruling.
Legal requirements for foreign buyers in Indonesia
Because buying property overseas in Indonesia requires the right structure, the opportunity is real, but the paperwork is non-negotiable. PP No. 18 of 2021 is a key reference for land rights and foreign ownership pathways.
Verify before signing
- Land status and who controls it
- Permits that match the intended use, including renting in Bali
- Contract term and renewal options
- Dispute clauses and governing law
- Who controls compliance day to day
Use the Indo Property Hub investment guide. This reduces risk from claims made in the Bali property market by real estate agents Bali.
Seeking professional overseas property investment advice in Indonesia and Bali
Because rules and operations intersect, split the work clearly. Legal confirms title and contracts, tax confirms reporting and exposure, and local ops confirms whether the plan works in the Bali property market beyond what real estate agents Bali claim.
Questions to ask
- What exactly will you verify, and what will you not verify?
- What documents do you need before you can sign off?
- How will you handle compliance and renewals over time?
- What are your fees, and what triggers extra fees?
- What happens if a dispute or permit issue arises?
This supports smarter overseas property investment, whether you want to invest in property abroad, investing in rental property abroad, or decide why invest in property abroad.
If you want, Indo Property Hub can help you compare options and connect with vetted local professionals.
Mistake #4: Not Visiting the Property Before Purchase
Importance of on-site inspections in Bali and Indonesia
Even with a clean listing, buying property overseas without visiting increases the risk of paying for problems you cannot see online. For example, in 2024, ABC News reported Australians who transferred more than AUD 120,000 for a Bali villa investment that allegedly did not exist.
Therefore, treat the first visit as a risk filter, not a holiday. Focus on issues that can block operations or trigger ongoing repairs in the Bali property market.
- Access road quality and legal right of way
- Drainage and flood marks after rain
- Construction quality, cracks, dampness, and roof condition
- Neighbour noise in daytime and at night
- Water pressure and water source reliability
- Electricity stability and backup readiness
We recommend contacting Indo Agents as a reliable property agent to secure your overseas property investment.
Evaluating neighborhoods and amenities (Bali, familiar areas for Australians)
Once the property passes inspection, neighbourhood fit becomes the next driver of performance. This is why Bali can be attractive for Australians, because demand is tied to lifestyle patterns, but results still depend on the micro location.
Fit signals
- Walkable access to the main draw for the area
- Reliable services nearby, gyms, cafes, and clinics
- Smooth access routes without daily bottlenecks
Risk signals
- Heavy construction next door
- Poor drainage corridors
- Zoning mismatch for renting in Bali
AirDNA reports Bali average daily rates around USD 145 and average monthly revenue around USD 13,274, which shows why neighbourhood selection affects pricing power.
Because these signals are easier to validate when the listing is specific, you can link them to real Uluwatu examples. For instance, a gated estate setup with shared amenities and a defined access road can reduce daily friction for owners and guests, which supports occupancy stability.
You can see this structure in Waits Estate Villa A in Uluwatu by Paralian Uluwatu, which highlights estate security, wellness facilities, and a 4-meter access road.
Likewise, if your target guest profile values rooftop social spaces, the neighbourhood fit still matters first, then the lifestyle feature becomes the differentiator. Waits Estate Villa C in Uluwatu by Paralian Uluwatu is a clear example of that rooftop positioning inside a managed estate environment.
Building relationships with local agents in Bali and Indonesia
After you shortlist areas, vet people as hard as properties. Ask for transparency, references, reporting cadence, fee clarity, and conflict checks before trusting real estate agents Bali.
Red flags
- Pressure to pay fast
- No written scope of work
- Vague fee structure
- No evidence of past deals
- Avoids compliance questions
If you prefer a structured process for overseas property investment and how to invest in property abroad, use Indo Property Hub to shortlist vetted agents and service providers.
Your Pre-Investment Checklist Before You Commit
If you want to invest in property abroad to work, treat it like a verification process, not a leap of faith. Start with this checklist, because each mistake hits your returns in a different way.
Pre-investment checklist
- Validate micro market demand in the Bali property market, not national averages
- Price the full cost stack so overseas property investment numbers stay realistic
- Confirm tax and legal structure before you sign, not after you pay
- Inspect in person so buying property overseas does not hide access, drainage, noise, or building issues
When you do that work, Indonesia can be a top choice for Australians, especially Bali. According to BPS, Indonesia’s economy grew 5.03% in 2024, and 2024 investment realization reached IDR 1,714 trillion, which supports long-term confidence when deals are structured properly.
This applies whether you target leasehold villas for renting in Bali, houses for retirement planning, an office for PMA expansion, or warehouses for trade presence.
Ready for a clearer path on how to invest in property abroad and invest in property abroad with less risk. Compare verified options on Indo Property Hub, then speak to vetted local partners and real estate agents in Bali through our secure platform.
FAQs
Can Australians buy overseas property?
Yes, but the rules depend on the country, so start with the structure first. In Indonesia, foreign pathways sit under PP No. 18 of 2021, so misunderstanding this creates legal risk quickly. If you’re planning to invest in Indonesia, always refer to the foreign ownership regulation in Indonesia.
How to finance an overseas property
First, map realistic paths, then validate eligibility early. HSBC lists common routes such as cash, releasing equity, using your local bank, or applying with an overseas lender, and suitability varies by your situation, which is central to how to invest in property abroad.
Can an individual who is not a Member or a Trustee in the SMSF, hold ownership of an overseas property on behalf of the Fund?
SMSF rules are strict, so get licensed advice before acting. If you are asking, can i invest my super in overseas property, treat compliance as the first filter because breaches can trigger serious consequences.
Where should you purchase property abroad?
The best places to invest in property abroad depend on strategy, collection goal, hold period, management capacity, and risk tolerance. To decide the best place, add must-have criteria such as demand engine and logistics access.
For instance, Java contributes about 57.02% of Indonesia’s GDP in 2024, which supports Jakarta and Surabaya as business and trade anchors. In regards of trade exposure, Surabaya’s container terminal operator handled 1,584,774 TEUs in 2024, which supports warehouse and industrial presence.
For lifestyle and yield strategies, shortlist micro areas inside the Bali property market using our Bali neighbourhood guide.
What are the best international real estate companies?
We recommend choosing based on proof. Collect licensing and certification evidence, deal with references, the fee schedule in writing, and conflict checks, especially when using real estate agents Bali. This matters because Australians have been scammed in Bali villa deals that did not exist.
Also, Indonesia has been tightening risk-based licensing rules, so ask for the valid licence number and scope. Therefore, we recommend using the Indo Agents directory for reliable and trustworthy property investment support.
How do currency fluctuations impact the global real estate market?
Because FX changes affordability, costs, and AUD returns even when performance is stable.
Plan renting in Bali costs in IDR first, then convert to AUD for cashflow planning.
Also, if you are an Australian tax resident, the ATO expects you to declare foreign income, including overseas rent.
What taxes will you need to pay on an international property investment?
If you are an Australian tax resident, you usually need to report overseas rental income in Australia, and you may also pay tax in the country where the property sits. The ATO is clear that Australian residents must declare foreign income in their tax return, including rent.
For Indonesia specifically, rent from land and buildings is commonly subject to a final income tax of 10% of gross and 11% of VAT under PP 34 of 2017.
Because Indonesia and Australia have a tax treaty, you may be able to claim relief to avoid double taxation, depending on your situation.
How can you get an international mortgage?
Australians typically use one of these routes, so start by matching the route to your structure and timeline. HSBC includes an overseas lender as one of the common options for funding routes.
Confirm the early checklist:
- Repayment currency and whether your income matches it
- Deposit expectations and required documents
- Approval timing versus your contract timing
This matters for buying property overseas in the Bali property market, because financing delays can force renegotiation or loss of deposits when invest in property abroad plans move too fast.