Off-plan or Completed Property in Bali: Returns and Risks
Every investor in Bali has to choose one of two strategies: enter at the construction stage (off-plan) or buy a completed property. Let’s look at what each path offers.
Off-plan means buying at the excavation stage or early construction, usually 12–18 months before handover.
Pros of off-plan:
— The price is 15–30% lower than the same property after completion. This is the basic premium for risk.
— Installment payments — usually 10–30% on signing, with the rest paid in equal tranches according to construction stages. Convenient for those who are not ready to pay the full amount at once.
— The ability to choose the best unit — floor, view, layout.
— Resale at the “90% completion” stage is possible with profit already locked in.
Cons of off-plan:
— Risk of non-completion. If the developer has financial issues or problems with the PBG, you may wait for years or lose part of your payments.
— Risk of deviations from the renders. The actual finish is often worse than the marketing.
— Your money is “parked” for 12–18 months without rental income.
— You need to check the developer very carefully (see the 12-point checklist).
Completed property is a handed-over, fully documented asset, most often with the first rental cycles already completed.
Pros of completed property:
— Cash flow from the first month. No need to wait for construction.
— You can see the actual finish and quality.
— Occupancy is visible through operator data (if the property is already being rented out).
— Less legal risk: PBG, certificates, licenses — everything is already in place.
Cons of completed property:
— The price is 15–30% higher than off-plan.
— Fewer options when choosing a unit (often the less liquid ones remain).
— If the property is on the resale market, due diligence of the previous transaction and legal history is required.
How to understand what to choose:
Off-plan suits you if:
— Your budget does not allow you to buy a completed property right away.
— You are ready to spend time on thorough developer due diligence.
— You have a high risk tolerance.
— Your investment horizon is 5 years or more (there is time to realize the profit).
Completed property suits you if:
— You need immediate cash flow.
— You do not want to dive into the legal details of construction.
— You have the capital, but not the budget for “stuck money” for 1.5 years.
— This is your first investment in Bali — it is better to see how the market actually works.
A compromise: buying a completed but “freshly handed-over” property (1–3 months after completion). The price is usually lower than mature resale, but the risk of non-completion has already been removed.
The key rule of off-plan: never buy from a developer with less than 5 years of experience and fewer than 3 completed projects. A 20% discount does not compensate for the risk of losing 100%.