What does it mean to buy Off-Plan? The term “off plan” defines an idea of a real estate property such as a house, villa, or restaurant that is already planned by an architect and often represented in 3D visuals but not built yet. Property developers often market such “off-plan” projects to let investors gain more secure financing conditions and as a part of their professional development portfolio.
Investing in such a type of property is worthy of attention, as it can help save a lot of money. For example, the “off-plan” developers can offer discounts and incentives for first-time property buyers. As the market growth is very rapid nowadays, such property is an investment you should consider – its development cycle varies from 12 to 24 months which is much faster than developing your own real estate project.
More to it, buying an “off-plan” property will help you save more money because buying an already built property can cost much more due to the awaiting construction or reconstruction. On top of all that, purchasing an “off-plan” property provides you with more freedom for modification.
Big returns and capital gain are two key factors that attract investors that are interested in purchasing real estate property in Bali. There is no difference if you purchase an “off-plan” property that is prior or already under construction, you can be sure that in the future its sales value will grow. You can always negotiate with the developer and obtain the property for even less. Thus in today’s article, we will share more benefits of investing in an “off-plan” property.
The Value is Bigger Than The Selling Price
Developing an “off-plan” project can take approximately 12 to 14 months until it’s completely finished. Now, for example, if the total cost of the “off plan” property construction is IDR1,8 B and you pay IDR1,5 B upfront after the construction is over, all you have to pay is IDR5 M – doesn’t matter if the property’s value has increased during the period of the development or, for example, inflation has affected the cost of the construction, you have nothing to worry about because the contract is signed in your name with a fixed price.
At this point, you can start looking for new investment opportunities or resell the property for a higher price in order to gain profits faster. The “off-plan” properties are almost always cheaper than purchasing the exact same villa but already constructed. As the property value is constantly growing in Bali, this prediction is pretty solid. This is a good chance to purchase an expensive property for below market value.
The Payment Plan Is Available
If you choose to invest in already-built real estate property, normally, you have to pay everything upfront. Surely, you can get a loan from a bank but you’ll have to seal the deal with the owner and pay the full price for the property. However, if you purchase an “off-plan” property, you can apply for a payment plan that usually goes along with the construction timeline.
You can apply for the house ownership credit if you prefer purchasing an already-built property, however, it is not as easy to obtain. With “off-plan” property, if you struggle with the finances, you have more time to find a solution because thanks to the payment plan, you don’t have to pay a large sum of money right away.
The Freedom of Modification
When you invest in an already-built villa, house, or commercial building, it is very likely that it will come already furnished, with specific interior design, paint, modifications, and so on. It is very unlikely that it will fit your needs and preferences completely. Thus, you will have to invest even more money on top of the already high price of the real estate property to customize it to your needs.
More to it, it will take time and you won’t be able to start using the property right away. On the other hand, with an “off-plan” property, you have more flexibility for modifications as the project is not fully developed yet.
Modern Design
Bali has changed over the years, and so have the needs of its visitors and customers. As the “off plan” properties are a case of recent development, it comes with a modern, fresh design, and stylish interior that is trendy nowadays and fits the needs of new generations.
On top of that, normally, “off-plan” villas and other buildings are built using more high-quality, more sustainable materials and smart solutions that were developed just recently.
The Quality
It makes sense that a new property is built using the most recently developed high-quality materials. Because of the improvements and advancements in the commerce sector, a lot of new materials were developed or perfected during the past few years, thus the quality and diversity of the materials used nowadays are exquisite.
For example, a floor that is made from natural wood, which was recognized as expensive, uncommon, and exotic years ago, today is the standard requirement, therefore, you can be pretty sure that “off-plan” villas are much more tailored to nowadays modern lifestyle.
Professional Workers
The construction standards in Bali have increased significantly. Currently, the government is in control of what kind of professional specialists can perform certain work on specified objects. If a developer is inexperienced, he has no chance to get the project approved. However, these conditions are perfect for investors – this way, you can be sure that you will obtain a property of the highest quality.
More to it, consider the fact that nobody has ever lived in an “off-plan” property, which is very nice to have if you are buying a home for yourself or using it as an investment by renting it out.
For more information on investment protocols in Indonesia visit bpkm.co.id
See Also; Bali Income Property 101
