You may have read about the benefits of buying an off-plan property, and it sounds exciting.
Locking in today’s prices, customizing your future home, and watching your investment grow—it all feels like a smart move.
But now you’re wondering, what’s the catch? Are there risks you should know?
That’s a great question.
Whether you dream of a Bali villa or your next investment, let’s break down the pros and cons so you’re ready for what’s ahead.
Let’s dive in!
Pros of Buying Off-Plan Property
When buying off-plan, there’s a lot to get excited about.
Let’s start with the advantages that make this option so appealing:
- Potential for Capital Growth
One of the biggest perks of buying off-plan is getting in early.
You’re purchasing at today’s prices, which can be a smart move if property values rise during construction.
By the time your new property is ready, it might already be worth more than what you paid—a win for your investment.
And let’s be honest, who doesn’t like the idea of gaining value before even moving in?
- Customization Opportunities
One of the biggest benefits of buying off-plan is the chance to create a property that stands out.
Unlike a finished property, where you might have to live with someone else’s choices—or spend time and money making changes—off-plan projects often let you customize before the build is complete.
Whether it’s upgrading to a larger pool or choosing a more luxurious kitchen design.
This flexibility not only gives you a home that feels uniquely yours but also sets it apart in the rental or resale market.
- Staggered Payment Plans
Buying off-plan can also be easier on your wallet.
Most purchases require just a small deposit (around 10%), with the remaining balance due when the property is complete.
This gives you time to save, arrange financing, or simply manage your funds without feeling rushed.
- Built for the Future
One thing that sets off-plan properties apart from finished ones is that they’re built to meet today’s market demands.
Developers often design these projects with the latest trends and buyer preferences in mind.
Whether it’s open layouts or features that cater to modern lifestyles like work-from-home spaces or flexible living areas.
This means you’re not just buying a property; you’re investing in one that’s designed to stay competitive in the market for years to come.
- Lower Initial Costs Compared to Finished Properties
Off-plan properties often come with lower prices than similar completed projects.
Developers may offer pre-launch discounts or promotional deals to attract early buyers, giving you a chance to secure a great deal before prices rise.
For example, a finished 3-bedroom villa in Canggu can cost $555,000, while the same 3-bedroom villa off-plan in Canggu cost $250,000.
This makes off-plan properties an appealing option for those looking to maximize their budget or invest with higher potential returns.
Now let’s take a look at the cons of buying off-plan property.
Cons of Buying Off-Plan Property
Of course, no investment is without drawbacks.
While off-plan properties offer plenty of benefits, it’s important to know the potential downsides, too:
- Uncertainty and Delays
Since the property isn’t built yet, there’s always a risk of delays due to weather, supply issues, or other unforeseen events.
This can affect your plans, especially if you were counting on moving in by a certain date.
Work with developers who have a strong track record and include clear penalties for delays in your contract.
Planning a buffer for your timeline can also ease the stress.
- Market Fluctuations
While property values often rise, there’s a chance the market could dip during construction, affecting the value of your investment.
That’s why, choose locations with proven long-term growth potential and consult real estate experts who understand Bali’s market trends.
- Developer Reliability
The developer plays a huge role in the success of your investment. If they face financial trouble or other issues, it could delay or even cancel the project.
Research developers thoroughly. Look at their past projects and customer reviews.
Related article: A Step-by-Step Guide to Constructing a Villa in Bali as a Foreigner.
- Final Product Discrepancies
The finished property may not look exactly as it did on paper—materials, finishes, or layouts can sometimes vary.
Visit similar completed projects from the developer to see the quality firsthand.
Add clauses in your contract for recourse if the property doesn’t match the agreed specifications.
- Limited Control Over Construction
Unlike a self-build, off-plan purchases give you limited input once construction begins, meaning you rely entirely on the developer’s team.
That’s why it’s essential to communicate your preferences early during the planning stage and keep an open line with the developer for updates.
A good agent can also help ensure your voice is heard.
By knowing these challenges and preparing for them, you can turn potential risks into manageable steps, making your off-plan investment as smooth as possible.
Related article: How to find the right constructor for your villa in Bali.
Next Step…
Now that you’ve seen the pros and cons of buying off-plan property, it’s natural to feel a mix of excitement and hesitation.
You might be imagining all the possibilities—designing a space that’s uniquely yours.
But at the same time, you might feel overwhelmed by the risks, the legalities, and the sheer complexity of it all.
That’s completely normal…
Buying an off-plan property, especially in a place like Bali, can feel like stepping into the unknown.
Here’s the good news: you don’t have to do this alone.
At Bali Villa Realty, we understand how daunting this process can be. That’s why we’re here to guide you every step of the way.
We’ll help you navigate the process, connect you with reputable developers, and handle the legal and logistical details so you can invest with confidence.
If you’re ready to take the next step, we’ve also put together a detailed guide on how to buy an off-plan property in Bali, step-by-step.
It breaks everything down into manageable stages, so you’ll know exactly what to expect.
In the meantime, if you have more questions and want to speak with experts with 14 years of experience in Bali’s property market, click the link below to schedule your FREE, no-obligation consultation.
