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Investing in an off-plan property in Bali is wise for anyone seeking a sound investment strategy. Bali is renowned for its stunning natural landscapes, vibrant culture, and thriving tourism industry, making it an attractive location for visiting and living. Unsurprisingly, Bali has emerged as a prime destination for property investment.
Investing in an off-plan property or a property that is still under construction provides unique advantages compared to buying a ready-built property. The benefits range from affordability to a wide selection of available units. Developers often offer an initial discount to attract early buyers when launching an off-plan project, and as the construction progresses to completion, the price will increase. Investing early can help you secure prime locations and capitalize on Bali's growing real estate market.
Benefits of Investing in Off-Plan Property
Are you thinking about investing in an off-plan property in Bali? Here's why it's a beneficial move for you.
1. Lower Prices
Purchasing an off-plan property allows buyers to buy the property at a lower price. As a buyer, you will benefit from the significant capital growth of the projects. As the development progresses and the units are completed, the values of the property rise. By investing early and purchasing off-plan, buyers can benefit from significant capital appreciation over the project's duration, as property values tend to increase upon the completion of construction.
2. Installment Choices
In an off-plan property project, the most common payment plan is to pay an installment of the property's total cost at the time of purchase and then pay off the balance in installments over a set period until the handover process once the construction is finished. This method lets the buyer pay the down payment first to secure the desired unit and continue with installments until completion.
3. Customization
Investing in an off-plan property allows the buyer to customize their selected units. Some developers permitted the buyer to customize the property according to their preferences. This includes selecting finishes and fixtures and altering layouts to suit your preferences or market demand. This level of customization can make your property more attractive and increase its value.
4. Potential for Higher Yield Rental
New and modern properties often attract higher rental prices due to their appeal to clients who look for a contemporary style of property with excellent amenities. Investing in an off-plan property can result in higher yield rental once the property is completed and is on the market to maximize the return on investment.
5. Warranty
When purchasing a newly built villa, the buyer often receives a warranty that typically extends for a period ranging from five to ten years. This warranty covers any construction defects, ensuring the developer will address such issues at no extra cost. In contrast, completed villas bought on the resale market usually do not have a warranty. Consequently, the buyer of a resale villa takes on the risk of dealing with any pre-existing defects or problems that may emerge, which could lead to additional expenses for repairs. Buyers need to be aware of these distinctions to make well-informed purchasing decisions.
Tips for Investing in Off-plan Property
Are you looking to invest in off-plan property? Check out these helpful tips for successful investing.
1. Conduct Your Research
Conduct your research on the off-plan property, including the developer and the area where it is built. The best advice is to stick with a trusted developer who produces high-quality property and has a good reputation.
2. Get professional advice
Purchasing an off-plan property can take time and effort. To avoid such confusion, seek guidance from a licensed and professional real estate consultant. A trusted real estate consultant will provide you with access to critical information such as financial projections, legal assistance, and help you secure the best deal while protecting your interests.
3. Take the time to conduct a visit
It's essential to take some time to visit the off-plan project and meet with the developer. The developer will walk you through the project rather than simply showing you renders.
Investing in off-plan properties is a strategic move worth considering for investors aiming to achieve solid returns and build long-term wealth. With thorough due diligence, these investments can yield substantial profits.
Looking for an off-plan property to invest in? Bali Home Immo has a curated catalog of off-plan properties that you can view here. Don’t miss out on the best deals!
Schedule a meeting with our talented sales agent today and secure your ideal off-plan property
