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, 3D renderings or digital designs.
Off-plan property turns out to be a more flexible and cheaper option compared to fully furnished villas.
Many foreign investors, especially first-timers, have taken this route to maximize returns (ROI). But, buying a villa that is not built yet can feel a little confusing.
Luckily, you’re in the right place. This guide will walk you through the full process of buying off-plan property in Bali without any unexpected costs.
Let’s get started!
Key Takeaways
- Off-plan villa Bali are cheaper and flexible. You buy before construction is finished, often with lower entry prices, flexible payments, and options to customize.
- Key steps to buy off-plan Bali property safely: Do legal due diligence, sign a secure agreement, make payments in stages, get permits, and register ownership properly.
- Pros vs. cons: Off-plan offers lower prices and higher profit potential but comes with risks like construction delays; finished villas cost more but give income right away.
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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.
- Freehold (Through PT PMA): If you plan to use the property for business (e.g., renting it out), you can set up a foreign-owned company (or PT PMA) to legally hold the title.
Read More: Freehold vs Leasehold: Which Ownership Type is Right for You?
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.
- 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 holiday rentals.
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). You can check about Bali land zoning here.
- Tax and Ownership History: Check for unpaid taxes or disputes.
Many investors feel stuck here, since choosing a qualified legal advisor who understands Indonesian land laws can be tricky. But no worries!
With Bali Villa Realty by Ilot, you’ll have access to trusted legal advisors and verified properties, so you can proceed with confidence knowing everything is secured.
Feel free to ask our agent anything through this link, no strings attached.
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.
Remember that having the right contract is very important. It protects your rights, sets clear expectations, and outlines exactly what you’re paying for—down to the smallest detail.
This helps ensure your investment stays safe, and you don’t face hidden costs or unexpected delays later on.
5. Make Payments Securely
Paying for off-plan developments in Bali often happens in stages. For example:
- Deposit: Usually 10-20% to secure the property.
- Construction Progress Payments: For off-plan project, 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 legal advisor or notary can guide you here.
6. Secure Necessary Permits
If you’re buying land to build or operate a rental villa, you’ll need permits like:
- PBG/SLF (Building Permit): Required for any construction.
- Pondok Wisata License: Needed if you want to legally rent out your property for short stays.
Let your agent or legal team handle the paperwork to keep things smooth.
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. Again, your notary will oversee this process and ensure everything is properly recorded.
8. Plan for Ongoing Management
If you’re renting out your property, consider hiring a property management company to handle maintenance, bookings, and tenant communication.
They’ll make sure your investment runs smoothly, even if you’re not staying in Bali full-time.
Also Read: Managing Your Bali Investment Property from Abroad: Expert Tips
Off-Plan vs. Finished Property: Quick Comparison
When buying property in Bali, you’ll often hear the terms off-plan and finished property. Both options have their own pros and cons, depending on your goals, budget, and risk tolerance.
Here’s a quick overview to help you understand the difference and make a smart decision.
| Aspects | Off-Plan Property | Finished Property |
|---|---|---|
| Definition | Property bought before construction is completed | Property that is already built and ready to use |
| Price | Usually cheaper than finished properties | Higher upfront cost |
| Customization | Often allows you to choose finishes or make design changes | Limited to renovations after purchase |
| Rental Income | No income until the property is finished | Can generate income right away |
| Risks | Construction delays, developer issues, or market changes during build time | Fewer risks; no delays or surprises during construction |
| Market Value | Potential to grow as the area or market improves | Known market value based on current conditions |
| Tangibility | Hard to visualize until it’s built | You can see and inspect the actual property |
| Payment Terms | Often offers flexible payment plans during construction | Usually requires full payment upfront or a mortgage |
Read More: Pros and Cons of Buying an Off-Plan Villa in Bali
Is It Good to Invest in Off-Plan Property?
Yes, buying off-plan property can be a smart move, since one of its advantages is the lower entry price.
For example, off-plan villas price in Bali typically range from $180,000 to $400,000.
While the number can vary based on location, size, and features, it’s still much more affordable compared to fully furnished villas, which can go up to $1,000,000 or more.
You also only need to pay around 10% deposit upfront, making it more accessible for beginners.
Another benefit of buying off-plan is the potential to resell for a higher profit, along with the flexibility to choose the best unit and customize it to your taste.
Easiest Way to Choose the Best Off-Plan Villa Bali
Now you know how to buy off-plan villa. It’s quite easy, right? But with so many listings out there, choosing the right off-plan villa can still feel overwhelming.
A great shortcut is to browse the project showcases on balivillarealty.com, the trusted villa agency under Ilot Property.
Below are some available off plan properties for sale listed by Bali Villa Realty:
Off-Plan 1-Bedroom Villa in Seseh
You can explore more by visiting this page: Off-Plan Villas for Sale
You’ll find a variety of villa designs in prime locations, including the “off plan property near me” category.
Whether you’re looking for a luxury villa, a sleek modern build, or a peaceful retreat by the ocean, there’s something to match your style and needs.
FAQ
1. Can I sell my off-plan property?
Yes, you can. As long as you’ve completed the payment and finalized all the necessary paperwork, there’s nothing preventing you from selling your off-plan property.
2. Can you get a mortgage on an off-plan?
Yes, it’s possible. Most banks release mortgage funds only after the project has reached a certain stage of construction (usually around 50–60%). Once that point is reached, and if you meet the eligibility requirements, you can apply for a pre-approved mortgage to cover the remaining cost.
3. How to calculate ROI on off-plan property?
You can calculate ROI using this formula: ROI = (Annual Profit ÷ Total Investment Cost) × 100
For example, if you purchase a property for AED 1,000,000 and earn a net profit of AED 90,000 per year, your ROI would be 9%.
Conclusion
Buying an off-plan villa can be a fantastic choice if you’re looking for a more affordable way to own a modern property in Bali.
But remember, you’ll need to wait for construction and be open to customizing your dream villa.
Still have questions or not sure which villa suits your vision? We’re here to help!
Click the link below to book a free, no requirement call with our professional real estate agent anytime.
