Thinking about buying a villa in Bali? You’ve probably come across the term off-plan villa and wondered what it means.
Don’t worry, this guide breaks it all down for you.
Even if you’ve never invested in real estate before, you’ll learn what off-plan means, how it works, and why it could be the perfect way to own your dream villa in Bali.
Let’s dive in!
What Is an Off-Plan Villa?
An off-plan villa is a property you buy before it’s built.
Instead of walking through a finished home, you’re purchasing based on the developer’s plans, drawings, and designs.
Think of it like reserving your spot for a villa that’s currently under construction—or hasn’t even started yet.
When you buy off-plan, here’s what you can expect:
- 3D Renderings or Digital Designs: Visual representations of what the villa will look like when completed.
- Floor Plans: Layouts showing the size and arrangement of rooms.
- Brochures or Models: Tools that help you visualize the finished property.
Now, let’s walk through how you can buy one.
Related article: Benefits Of Buying Off-Plan Property In Bali.
How to Buy an Off-Plan Villa in Bali
Step #1: Understand Your Ownership Options
As a foreigner, you can’t directly own freehold land in Bali. Instead, you’ll choose from these options:
- Leasehold
You lease the land for a set period (usually 25-30 years, renewable). You don’t own the land, but you have full rights to use it during the lease term.
- PT PMA (Foreign-Owned Company)
If you plan to use the property for business (e.g., renting it out), you can set up a foreign-owned company to legally hold the title.
Each option has pros and cons, so think about your long-term goals before deciding.
Related article: Freehold vs Leasehold: Which Ownership Type is Right for You?
Step #2: Find the Right Property
Now that you know your ownership options, it’s time to search for the perfect property. Here are a few key things to look for:
- Location
Are you drawn to the vibrant energy of Canggu, the serene beauty of Ubud, or the peaceful coastline of Tabanan? Choose a location that fits your lifestyle or rental goals.
Related article: 10 Best Areas to Invest in Bali Real Estate.
- Rental Potential
If you plan to rent it out, look for areas with high demand and year-round tourist traffic.
- Legal Status
Ensure the property is zoned for your intended use, whether that’s residential, commercial, or short-term rentals.
Finding the right property can feel overwhelming, especially in a competitive market like Bali. That’s where we come in.
At Bali Villa Realty, we offer curated listings from credible developers to help you find a villa that fits your needs. Explore our listings here.
Step #3: Conduct Legal Due Diligence
Before signing anything, hire a legal advisor to conduct due diligence on the property. This includes:
- Land Certificate Check: Ensure the title (e.g., Hak Milik or Hak Sewa) is legitimate and matches the seller’s details.
- Zoning Verification: Confirm the land is zoned for your intended use (e.g., tourism, residential).
- Tax and Ownership History: Check for unpaid taxes or disputes.
With Bali Villa Realty, you’ll have access to vetted properties and trusted legal advisors, so you can move forward with confidence.
Step #4: Draft and Sign a Secure Agreement
Once the property checks out, your lawyer will draft a purchase agreement. Key elements include:
- Terms of Sale: Price, payment schedule, and property handover details.
- Guarantees: Developer or seller obligations (especially for off-plan properties).
- Penalties: For delays or breach of contract.
For off-plan purchases, having a solid contract makes all the difference.
That’s why working with reputable developers is crucial—ensuring you get exactly what’s promised, on time, with no hidden surprises.
Step #5: Make Payments Securely
Paying for property in Bali often happens in stages. For example:
- Deposit: Usually 10-20% to secure the property.
- Construction Progress Payments (for off-plan): Payments are tied to key milestones (e.g., foundation, roofing, completion).
- Final Payment: The balance upon completion or transfer of the lease.
Always transfer funds through secure and traceable methods. Your lawyer or notary can guide you here.
Step #6: Secure Necessary Permits
If you’re buying land to build or operate a rental villa, you’ll need permits:
- PBG/SLF (Building Permit): Required for any construction.
- Pondok Wisata License: Needed if you want to legally rent out your property for short stays.
Your legal advisor or agent can help you apply for these permits.
Step #7: Transfer Ownership
Once payments are complete and all permits are in order, it’s time to finalize the ownership transfer.
For leasehold or PT PMA structures, this means registering your name or company as the legal holder.
The notary will oversee this process and ensure everything is properly recorded.
Step #8: Plan for Ongoing Management
If you’re renting out your villa, consider hiring a property management company to handle maintenance, bookings, and guest communication. They’ll ensure your investment runs smoothly, even if you’re not in Bali.
Related article: Finding the right property management company in Bali.
Is Off-plan Right for You?
Buying an off-plan villa can be a great way to own a modern property in Bali at a lower cost. It’s ideal if you’re willing to wait for construction and want the flexibility to customize your villa.
However, if you prefer seeing a completed property before committing, an off-plan purchase might not be for you.
That said, with thorough research and the right guidance, it can still be a safe and rewarding investment.
Ready to explore more off-plan options?
Check out our curated listings here and take the first step toward owning your dream villa in Bali!
