Why Off-plan Real Estate is so popular in Bali
Let’s have a look at why Off-plan has become such a massive attraction for investors in Bali
We all know Bali is know for its lush and natural landscapes, booming tourism market, beautiful culture and authentic street foods, and not to mention the stunning white sandy shores and turquoise oceans. All these things mentioned makes Bali a very attractive investment location for those seeking Property investment and for other Residential real estate
Investing in off-plan developments, or developments that are under construction provides several advantages compared to the standard already built Real estate market.
As I am sure most of you are aware, off-plan provides investors with a lot more options to choose from, affordability being one of the main attractions to investors as there are payment schedules that assist buyers, launching of new projects and purchasing early pre sales can offer buyers an additional benefit of an even better purchasing price.
Investing at early stages of most these new developments gives you the opportunity to capitalise on growth in the thriving real estate market
Let’s have a look at the benefits of investing early stages of construction or pre-sale
1. The most obvious start would be the price points (They generally speaking lower)
Getting an early start in your investment and purchasing at an early stage of the development allows buyers to see a much larger capital growth on their investment, due to the later stages of development prices increase and the value becomes more. So dear reader, if capital gain is your game, then off plan or presale units might just be the best option for you.
2. Instalment options on Pre-sale or Off plan
This is a fantastic benefit, due to several different payment schemes available to the early birds. This allows investors to pay the investment or resident off over the construction period written in to the construction agreement. Generally speaking, payment plans work as follows
10% - Deposit upon a legal Letter of Intent or Offer to Purchase
30% - Upon signing the land agreements with the Notary after a legal due diligence is done
Remaining 60% split over the remaining period of construction and handover period of the property
Construction times range from 10-18 Months
3. Getting in Early allows you a little room for changes if necessary
Should you purchase in off plan or presale it can be to great benefit should you wish to make a few changes to the current design of the space or landscaping. You able to have a much larger say in the fit out and completion of furniture and fixtures of the property
4. Property Warranties
When purchasing a new building, most of the new modern developments and developers offers a warranty on roof and building structure of 3-10 Years depending on sales prices. Some developers offer a defects warranty ensuring that should anything not be up to standard after the handover is done, they will sort that out for you at no extra charge. Completed villas in Bali generally does not come with any warranties, therefore it sold as seen.
Here are a few suggestions we have when looking at Off plan or presale
1. Do research and ask your real estate agent as many questions about the development and the developers as possible
2. Make sure that you are purchasing a villa with a trusted developer that has either had a project in Bali or have been in construction and knows the ins and outs of project management. This is great for quality control
3. Work with a professional licensed Real estate agent in Bali to assist you in the process, that have relationships with developers, they will know more about future plans, construction times, financial projections, legal assistance and we will protect you interest
4. Spend some time visiting the development site and speak to the developer directly
We hope that you enjoyed this article
Should you have any further questions on the above topic please do not hesitate to reach out to our offices and our professional Real estate staff will assist you with your enquiry
