Investment
The Pros and Cons Buying Ready Villa vs Buying Land in Bali: An In-Depth Comparison
April 29, 2023 •
4 min read
The Pros and Cons Buying Ready Villa vs Buying Land in Bali: An In-Depth Comparison

Bali is a beautiful island with a rich culture, stunning landscapes, and an amazing real estate market. Many people dream of owning a villa or a piece of land in Bali. However, there are pros and cons to both buying a ready villa vs a piece of land in Bali, and in this article, we will take an in-depth look at them.

Pros of buying a ready villa in Bali

  1. Convenience – When you buy a ready villa in Bali, you can move in immediately without having to wait for construction to finish. This is especially advantageous if you are planning to move to Bali or rent out the villa for income.
  2. Design – Ready villas come in a variety of designs and styles, so you have the opportunity to find one that suits your preferences and personality. You can choose a villa that has been designed and decorated to your taste.
  3. Location – Ready villas are often located in established and desirable neighborhoods. You can choose a location that is close to the beach, shops, restaurants, and other amenities.
  4. Amenities – Ready villas often come with amenities such as a pool, gym, and other recreational facilities. This can be a great advantage if you are looking for a luxurious lifestyle.

Cons of buying a ready villa in Bali

  1. Cost – Ready villas in Bali can be expensive, especially those located in prime locations. You need to have a substantial amount of money for the down payment, closing costs, and other expenses.
  2. Limited customizations – When you buy a ready villa, you have limited control over the design and layout of the property. You cannot make any significant changes to the villa without incurring additional costs.
  3. Depreciation – Ready villas in Bali can be subject to depreciation, especially if they are not properly maintained. You need to be prepared for ongoing maintenance costs to preserve the value of the villa.

Pros of buying land in Bali

  1. Flexibility – When you buy land in Bali, you have the flexibility to design and build a villa that meets your specific needs and preferences. You can create a unique space that reflects your personality and lifestyle.
  2. Cost – Buying land in Bali can be less expensive than buying a ready villa, especially if the land is not in a prime location. You can save money by designing and building a villa that fits your budget.
  3. Appreciation – Land in Bali can appreciate over time, especially if it is located in a desirable location. You can benefit from potential appreciation in property value over time.
  4. Customization – You have complete control over the design and layout of the property when you buy land in Bali. You can create a personalized villa that meets your specific needs and preferences.

Cons of buying land in Bali

  1. Time – Designing and building a villa can take a significant amount of time, especially if you want to ensure that it is of high quality. You need to be prepared to invest the time and energy required to design and build your dream villa.
  2. Uncertainty – There can be uncertainty with the construction process, and you need to be prepared for unexpected delays, design changes, and additional expenses that may arise during the construction process.
  3. Cost – Designing and building a villa can be expensive, and you need to have a substantial amount of money for the construction, design, and other expenses.
  4. Maintenance – You will be responsible for all the maintenance and repair costs of the villa when you buy land in Bali. You need to be prepared for the ongoing expenses to maintain the villa.
Conclusion

There are pros and cons to both buying a ready villa vs land in Bali, and the choice ultimately depends on your personal circumstances and preferences. If you are looking for convenience, amenities, and location, then buying a ready villa might be the best option for you to free yourself from the hustle of running around the island to look for furniture.

If you need more information, reach out to us for any free consultation! We will be great hands for your Bali Villa Investment.

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Freehold
Type

Type of property ownership dedicated for local investors or foreigners under legal cooperation in Indonesia. The freeholder of a property owns it outright, including the land it is built on. If you buy freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs and taxes.

certificate

Surat Hak Milik (SHM) / Surat Hak Guna Bangunan (SHGB)

term

Lifetime, or until it’s sold to a new owner

owner status

Indonesian individual only or foreigner who has a company in Indonesia (PMA) to buy the property under that company’s name

Leasehold

Type

Type of property ownership for foreign investors who are willing to purchase the property as an individual. With leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless the contract states guaranteed lease extension at future market price.

certificate

Akta Sewa / Right to use – Right to rent

term

Average 20-30 years, with possible extension. Maximum 99 years

owner status

All people including Indonesian and foreigner with KITAS-Visa status