Investing in real estate is a significant decision, especially when it comes to choosing between buying land or a finished property in a place as captivating as Bali. The island’s allure, with its rich culture, stunning landscapes, and growing tourism industry, makes it an attractive destination for investors. This article explores the considerations involved in making your first investment in Bali and weighs the pros and cons of purchasing land versus a completed property.
As a Real Estate Agency in Bali, for the first investment, we recommend 100% to invest on a finished property. Here are the few reasons we explain below:
Buying Land in Bali
Flexibility in Design and Development:
Purchasing land in Bali provides you with the freedom to design and develop your dream property. This flexibility allows you to tailor the space to your preferences, ensuring that the final result aligns with your vision and investment goals.
Potential for Higher Returns:
While buying land requires additional investment in construction, it offers the potential for higher returns. Developing the property can increase its value significantly, especially if done strategically to cater to the preferences of the market.
Long-Term Appreciation:
Land values in Bali have historically shown long-term appreciation. Investing in well-located land can be a lucrative option, as the demand for property in prime locations continues to rise.
Challenges of Construction:
Constructing a property from scratch can be challenging, especially for first-time investors. It involves navigating local regulations, hiring contractors, and overseeing the construction process, which may require additional time and effort.
Buying a Finished Property in Bali
Immediate Returns:
Opting for a finished property provides you with the advantage of immediate returns on your investment. Whether you choose to rent it out or use it for personal purposes, a completed property allows for a quicker start to your investment journey.
Reduced Construction Risks:
By purchasing a finished property, you eliminate the risks associated with construction. Delays, unforeseen costs, and construction-related challenges are bypassed, providing a more straightforward investment process.
Easier Financing:
Financing a completed property is often easier than securing funding for land and construction. Banks and financial institutions are generally more willing to provide loans for ready-to-move-in properties, simplifying the financial aspect of your investment.
Limited Customization:
The downside of buying a finished property is the limited scope for customization. If you have a specific vision in mind that deviates from the existing design, it may require additional investment to modify the property according to your preferences. We recommend for you to read on our tips for first-time homebuyer.
Conclusion
Deciding between buying land or a finished property in Bali depends on your preferences, risk tolerance, and investment goals. If you seek customization and are willing to navigate the complexities of construction, purchasing land may be the ideal choice. On the other hand, if you desire immediate returns and a more straightforward investment process, a finished property may suit your needs better.
Regardless of your choice, thorough research and consultation with local experts are crucial. Understanding the local real estate market, Bali’s culture, regulations, and potential challenges will empower you to make an informed decision. Bali’s unique charm and investment potential make it an exciting destination for your first real estate venture, whether you choose to build from the ground up or invest in a ready-made piece of paradise.
