Investing in Bali: Should You Buy Land or a House?

Buying land means creating your dream home exactly how you want it and making good money over time. 

But buying a house gives you immediate access to Bali’s community and lifestyle…

Which one to choose can be overwhelming.

Each path offers its own set of benefits and challenges. 

Let’s explore the pros and cons of buying land or a house in Bali. This will help you make the best choice for you.

Ready to dive in? Let’s get started.

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I’ll explain the pros and cons of buying land vs. a house, but first, let me begin with your…

Investment goals and time horizon

Once upon a time, there were two investors, let’s call them Sam and Alex…

Here’s the story… 

Sam’s short-term Goal.

Sam was just like you, excited but cautious. 

He decided to buy a finished house in Bali because he wanted to see returns right away. When he bought the house, he started renting it out to tourists. 

Every month, his rental income covered his expenses and even gave him some extra cash for fun. 

For Sam, buying a finished house was perfect. He didn’t have to wait to see his investment grow.

But one day, he thought, “How easy will it be to sell my investment?”

Sam’s Exit Strategy…

After a few years of renting out his finished house, Sam decided it was time to sell. 

The process was smooth and quick. Many buyers were interested in his house because it was ready to move in. 

Families, retirees, and other investors were all looking for a place like Sam’s. He sold his house and made a nice profit.

Now, let’s talk about Alex…

Alex had a different plan. 

He wasn’t in a hurry and wanted his investment to grow over the years. Alex bought a piece of land in a beautiful part of Bali. 

As time passed, the value of the land increased because more people discovered the area. 

Alex’s patience paid off, and when he was ready, he built his dream home or sold the land for a nice profit.

Alex’s Exit Strategy

On the other hand, Alex held onto his land for several years. When he decided to sell, finding the right buyer took a bit longer. But the wait was worth it. 

The land had appreciated significantly in value. 

Developers and future homeowners were very interested in his prime piece of property. Alex eventually sold his land for a great profit, much higher than he initially paid.

What’s the takeaway?

If you’re like Sam and want to make money soon, buy a finished house. 

You can rent it out right away and enjoy a steady income. 

When it’s time to sell, it’s quick and easy. The demand for ready-to-live-in homes in Bali is high, so finding buyers is simple.

If you’re patient like Alex, buy land. You might wait longer for returns, but your investment can grow a lot. 

Land in Bali, especially in popular areas, tends to increase in value, attracting developers and investors.

Do you have some pictures of which one you’re going to buy? 

If not, check the tables below to summarize the pros and cons of buying land and houses. 

Buying Land: Pros and Cons

PROSCONS
Flexibility in Project Timing Hidden Costs
You can start building whenever you’re ready, allowing you to save up money and find the right builders.Beyond the purchase price, there are permits, utilities, and construction costs.
Lower Entry Cost Uncertain Future Value
Land is often cheaper than houses, especially in popular areas, making it easier to start investing.Not all land will increase in value, so research locations carefully.
Untapped Potential & High ROITime and Stress
Land in up-and-coming areas of Bali can increase in value, offering a good return on investment.Building can take a long time and be stressful, especially if you’re managing it from afar.

Also read : About Bali land Zoning

Buying a Finished House: Pros and Cons

PROSCONS
Immediate Use and Return Less Personalization
You can start living in or renting out the house right away.The house is already built, so you might have to compromise on some details.
Less Hassle Higher Initial Cost
No need to worry about construction or building permitsFinished houses can be more expensive upfront compared to land.
Set CostsMaintenance and Repair Obligations
You know exactly how much you’re spending on a finished house.Owning a house means regular upkeep and repairs, which can be costly and time-consuming.

Also read : 7-Step Guide to Safely Buying Property in Bali

What Should You Choose?

There are three things you need to consider before choosing your best option:

>> Think About Your Goals

If you dream of designing your perfect house and are willing to wait, buying land might be the best choice…

If you want to start enjoying Bali right away without the hassle of building, buying a house could be the right option.

>> Consider Your Finances

Building a house can cost more upfront. Make sure you have enough money saved or can get a loan.

>> Your Timeline

If you’re in no rush and enjoy the process of building, this could be a great option.

But a ready-to-move-in house might be better if you want to start living or rent it out as soon as possible.

Final Thoughts

Both options have their pros and cons. 

Ultimately, choosing between land and a house depends on what you want, how much risk you’re okay with, and your desired timeframe.

If you’re considering starting with a land investment, explore our Bali land listings to find options that align with your goals.

Take time, research, and choose the best option for your goals and finances. 

Investing in Bali can be an exciting journey, and making the right choice will help you enjoy it fully.

Want to start an investment property in Bali?

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