Off-plan or ready-built: what to choose in Bali
EZ
Evgeny Zhuikov
Investment analyst, columnist
Author - Evgeny Zhuikov, investment analyst. Author's column on Balinsky.
Buy during construction (off-plan) or a finished property? Evgeny Zhuikov compared both options. The assessment is as of May 2024.
Finished property
Pros:
- The house is definitely finished.
- The real rental revenue is known.
- Income starts right away.
- The price per square metre is usually lower than off-plan.
Cons:
- Most likely "Balinese style": in looks and comfort it falls behind new projects. This can make renting harder.
- You cannot check the build quality.
- It is usually worse in its features than a new property.
- The price per square metre per year of land lease is usually higher than off-plan: the leasehold term is shorter.
Off-plan property
Pros:
- You can control quality and sometimes influence it. The chance of getting a good house is higher.
- It looks better and sells better.
- The price per square metre per year of land lease is usually lower.
- The leasehold term is longer, and the extension terms are clearer.
Cons:
- The price per square metre is more often higher than for a finished property.
- The area is often "up-and-coming" rather than proven. Whether tourists will go there is unknown.
The author's conclusion
Off-plan properties are usually better in quality, with a long leasehold and a clear extension, but they are not always in proven areas.
Finished ones are usually already in proven areas and bring income. How good that income is - you need to calculate. But they often have a short leasehold, vague extension terms, and quality problems may only show up after the purchase.
What Balinsky data shows: is off-plan really cheaper, leasehold terms in numbers.
About the author
Evgeny Zhuikov is an investment analyst and the author of the Telegram channel [Advisors](https://t.me/advisorsz).
- since 2012 he has analysed investment products, and since 2015 projects in the real economy;
- in 2021–2022 he was an investment adviser listed in the Bank of Russia register (No. 105);
- in 2022–2023 he was chief operating officer of the development company Golden Tree in Bali;
- he did market research for hotel projects in Bukit;
- guest lecturer at MKB Investments, holder of a Russian FFMS 1.0 qualification certificate.
The author's opinion may differ from the position of the Balinsky editorial team.