7 Big Mistakes Foreigners Make When Buying Off Plan Villas in Bali
7 Big Mistakes Foreigners Make When Buying Off-Plan Villas in Bali
(…and how to make sure your dream villa doesn’t become a disaster)
Buying off-plan in Bali can be the smartest move you ever make - if you choose the right developer. But get it wrong, and you could be handing over hundreds of thousands of euros… for a villa that’s delayed, illegal, or falling apart in 2 years. Let’s make sure that doesn’t happen.
Mistake #1: Trusting a Beautiful Render Without Asking for Past Projects
What happens: Anyone can hire a designer to create dreamy 3D renders. The real question is: Can this developer actually deliver what they promise?
What to do instead:
✅ Ask which projects were built by this exact team. Including the contractor, architect, and project manager.
✅ Request photo galleries or video walk-throughs from completed builds, not just design concepts.
✅ Check for consistent design to delivery execution. Did the finished villas match what was promised?
✅ Beware: Many developers choose the cheapest contractor who doesn’t understand European standards. The result? Leaky roofs, bad finishes, and costly repairs later.
✅ Ask who is overseeing the construction day to day. if there’s no independent, third-party technical project manager, you’re relying on the local builder who doesn’t have international experience and understanding to check their own work
✅ Look for a team that has experience delivering real villas, not just designs
Even if the project is new, a trusted, experienced team, and unbiased oversight are what turn a dreamy render into a profitable, long-lasting villa.
💡 A render can sell you a fantasy. A proven team delivers your reality.
Mistake #2: Paying the Full Amount Upfront
What happens: Some developers ask for 70–100 % payment early, leaving you with zero leverage if things go wrong.
What to do instead:
✅ Negotiate staged payments: e.g., 30 % on signing, 30 % after structure, 30 % on finish, 10 % on handover
✅ Always hold the final payment until after a proper snag list and SLF (occupancy permit) are delivered
💥 Mistake #3: Not Checking Land Ownership or Zoning
What happens: The land might be in the wrong zone (LSD, green, sacred) or not even owned by the developer.
What to do instead:
✅ Ask to see the original land certificate (SHM or HGB)
✅ Check zoning via RDTR maps (look for pink or yellow zones)
✅ Confirm access road width ≥ 2.6 m for legal rental use
✅ Ask for proof that the land is fully paid and already in the developer’s name (a signed deed or final sale contract)
❗ If the developer doesn’t own the land yet, they’re using your money to try and buy it.
That’s high risk. Always verify land ownership before sending a single euro. Without land, there’s no villa - just a promise.
Mistake #4: Assuming the Villa Will Be Legal to Rent
What happens: Many foreigners only discover after construction that their villa can’t legally be rented on Airbnb. In some cases, the project is even shut down by the authorities after the buyer has already paid.
What to do instead:
✅ Confirm that a PBG (building permit) has been officially submitted before construction starts
✅ Ask about the plan and timeline for SLF (occupancy certificate) - this is now required by Airbnb, Booking.com, and even for insurance
✅ Check that the developer operates under a PT PMA or has the legal right to lease the land for short-term rentals
✅ Be aware: 95% of constructions in Bali still begin without a PBG. This used to work in the past, but now the government actively checks for permits. If they show up and there’s no PBG? The site can be shut down mid-build
✅ Even worse - getting a retroactive permit can take years, and during that time, you legally can’t run a rental business
❗ A finished villa without a PBG is like a car without license plates: you paid for it, but you can’t use it.
Make sure your dream Airbnb doesn’t turn into a locked-down liability. Always ask for PBG proof.
Mistake #5: Ignoring Material Specs and Build Quality
What happens: Shiny exteriors can hide cheap piping, leaky roofs, and non-insulated walls. Everything looks good on handover day, but six months later, you’re dealing with mold, broken pumps, or a full roof replacement.
What to do instead:
✅ Ask for a detailed bill of materials (roofing, plumbing, windows, waterproofing, insulation)
✅ Check who the actual builder is - many developers outsource to the cheapest contractor they can find
✅ Visit finished villas built by the same contractor, if possible. Open doors, flush toilets, run showers - test everything
✅ Know this: Local contractors will often ask, “Is this villa for you or for sale?” → If it’s for sale, they intentionally cut costs using low-grade pipes, thin walls, and short-term solutions where you can’t see them → You get a villa that looks great in photos… until the rainy season hits
✅ When a villa is significantly cheaper than similar offers, don’t celebrate - investigate. → Ask: How are they saving costs? Where did they cut corners?
❗ If you don’t see the material list, assume the materials are cheap.
You wouldn’t buy a luxury car without knowing what engine is inside. Don’t do it with your villa either.
Mistake #6: Overestimating the ROI Promises
What happens: Developers often promise “20-25 % ROI” based on best-case scenarios, without showing where the numbers come from.
What to do instead:
✅ Ask for ROI calculations based on actual market data (e.g. AirDNA, AllTheRooms) for the same area
✅ Make sure they include occupancy rate and ADR (average daily rate), not just total income
✅ Check that the calculation includes all costs: management, cleaning, maintenance, Airbnb fees, and taxes
✅ Ask for 3 versions: low, average, and high-season income - so you see the full picture
❗ If the numbers look too good to be true, they probably are.
Solid investments are built on real data, not just promises.
Mistake #7: Skipping the Lawyer
What happens: Many foreigners rely only on the developer’s notary, who is not legally obligated to protect your interests.
What to do instead:
✅ Hire your own bilingual lawyer or notary (PPAT)
✅ Have them review the reservation agreement, lease, and build contract
✅ Ensure your contract includes clear refund terms, penalties for delays, and handover obligations
❗ The notary ensures the deal is processed legally, but they don’t represent your personal interests.
Independent legal review adds an extra layer of protection- especially when you're buying in a foreign country.
🧭 Quick Cheat Sheet: What to Ask Your Developer Before Buying
Must-Have
Why It Matters
1️⃣ Project references with photo proof
Shows they’ve delivered—not just designed
2️⃣ Copy of SHM/HGB + RDTR zoning
Confirms the land is legal to build on
3️⃣ Proof that land is already fully owned
Avoids the risk of paying for unowned land
4️⃣ Payment stages in the contract
Keeps your money protected during the build
5️⃣ Detailed material list + build specs
Avoids hidden cost-cutting on quality
6️⃣ PBG already submitted + SLF plans
Ensures your villa is legally rentable
7️⃣ ROI based on market data, not just promises
Protects you from inflated projections
8️⃣ Third-party project management
Ensures unbiased quality control
9️⃣ Independent lawyer/notary
Safeguards your rights and money
🎯 Ready to Buy Smarter?
Buying a villa off-plan in Bali can be a life-changing investment—if you do it right.
Ask the hard questions. Demand transparency. Choose people who care about long-term quality—not just short-term sales.
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