Bali has a certain appeal for many travelers, some of whom visit the island every chance they can get. It’s not surprising then that many then want to live here permanently. The move is a major one for most people, one fraught with emotion and not to mention, expense. Here is a list of some of the major mistakes I have seen people make since moving to Bali myself and hopefully you can avoid them too if you move to Bali.

1. Chasing the freehold property dream

Foreigners cannot own property in Indonesia. It is as simple as that. Many people will try to get around the law by placing the property in Indonesian friend’s name, but it still doesn’t make it legal.

2. Thinking you can find a job

Unemployment or underemployment is very high in Indonesia. There are also many highly skilled Indonesian workers whose salaries will be a lot less than what most expats will want to be paid. It is also expensive for a company to employ a foreigner, the visa alone is around $2000. There are a few English teaching jobs, but the pay is low and the competition is high, for the few jobs available. Most foreigners who don’t already have an outside income, try starting a business in Bali to survive.

3. Starting the wrong kind of business

I think one of the main reasons why expats fail at starting a business in Bali, is not having enough experience in the business they start. There is a huge turnover in the bars and restaurants all over Bali. Sure there are established places that seem to have been around forever, but it has taken the business owners years of hard work to get to there.

4. Getting in the wrong relationship

Going out to bars and clubs is a fun activity for many expats and making friends with other expats and locals. Having a relationship with a local whom they met in a nightclub is one thing, buying a property or business and using them as the nominee (Indonesian owner) is a recipe for disaster, which I have seen all too often.

5. Not learning the culture

When a foreigner recently got caught with drugs in Bali and received a hefty sentence, one of the newspapers in his home country said he wouldn’t even have gone to jail for the offense in his country. Indonesia has different laws, customs and language and it is up to foreigners moving or even traveling to Bali to be familiar with the laws and culture of their new home. There is nothing worse than expats who continually compare the way things are done “back home”.

6. Not learning the language

Indonesian is a relatively easy language to learn, but it still requires effort and practice. You will gain a great deal of respect by Indonesian people by communicating in their language.

7. Underestimating the cost of living in Bali

Generally speaking Bali has a lower cost of living than most western countries. Gasoline for example is subsidized by the government. Meat, fruit and vegetables is typically inexpensive and you can eat cheaply at warungs. This makes people think they can live very cheaply in Bali. The reality is that there are a number of expenses people don’t think about when calculating their budget. Visa runs to Malaysia or Singapore for example and health insurance or medical bills, if you don’t have any insurance. Imported items are generally more expensive and imported alcohol can be around 3-4 times the usual price.

8. Getting the wrong visa

Many people come to Bali thinking they can do some work on a social, business or even retirement visa. The only visa which you can legally work on is a ‘working visa’. If a potential employer offers you work, don’t even think about accepting the job unless your company will provide a working visa.

9. Not getting the proper legal advice

Bali forums and the internet are good for doing basic research and getting some ideas about how things operate, but it should not a replacement for getting proper legal advice from a qualified consultant, notary or lawyer. Just because a foreigner has started their own hotel in Bali, doesn’t mean they will know all of the legal aspects. How can you know if what they did is the right procedure to follow anyway?

10. Not making local friends

As difficult it is to imagine probably for most people, some expats who move to Bali only associate or make friends with other expats. Having many local friends will only make your stay in Bali more enjoyable and in many ways easier. Dealing with bureaucracy can be a real pain, but having a friend who can help you out makes everything so much smoother. At the same time I believe it is also healthy to make friends with fellow expats. Like many things about living in Bali, it’s all about finding a good balance.

Every so often, in letters to the editor and posts on forums, you come across people who have “lost their shirt” in Bali.

Here is one such person in a letter to the editor in the Jakarta Post:

I am an American who has been living in Bali full-time for the past three-and-a-half years. I first came to Bali in 1997 and, like many other visitors, fell in love with the natural beauty of Bali and the seemingly simple way of life.

To date, I have made two agreements with my partner and have already given him more than half of everything I have in an effort to resolve this situation. I made these agreements in good faith yet I continue to have problems. I have been to many lawyers and notaries and have asked for help from the Bali Police (Polda) but from what I can see, the problem only gets worse.

On one hand I have sympathy for people like this, but on the other hand it is difficult to comprehend how someone would invest their life savings in a business without getting the proper legal advice and protection.

If you are planning on investing in any country, even if it is your own, it is important to understand the laws and how they pertain to your own situation. Not understanding the language is also a poor excuse. If you are not fluent in the language, you should get all legal documents translated by an independent translator into your own language.

Legal fees are relatively inexpensive in Indonesia and it is a good idea to speak to a few different notaries or lawyers until you can find someone you like and are comfortable working with.

Lovina, Bali

Investasi dapat di katakan salah satu hobby atau sebagai pekerjaan paling mengasikkan dan paling baik untuk financial di hari kedepan.
Kebanyak investasi selama ini yang di lakukan oleh banyak awam adalah dengan bermain di saham Bank.

Namun sejak di tahun 2008 hingga 2010, Begitu banyak masalah yang tidak dapat di hindari dalam bermain saham. Hingga beberapa Bank yang hingga saat ini masih dalam penanganan atas tuntutan penanam saham yang merasa di rugi kan.

Bali adalah lahan Investasi yang saat ini di manfaatkan oleh mereka yang menyukai dunia berinvestasi. Bali adalah investasi terbaik, karena di Bali sangat mudah untuk memperoleh kembali nilai yang telah kita tanam untuk kita dapatkan kembali.

Kebanyak dari mereka yang berinvestasi di Bali adalah dengan membeli lahan lalu menjual kembali atau membeli lahan dan membangun sebuah Villa lalu menjual kembali kepada orang asing lain nya. Atau dengan membeli lahan, membangun sebuah Hotel atau bisnis apa saja dan dapat menuai dari bisnis tersebut di samping dari pekerjaan lain nya atau dari investasi lain nya.

Untuk sebuah Villa atau Hotel, Bali salah satu tempat terlaris dan terbaik memulai bisnis dan dengan mudah mendapatkan kembali modal yang tertanam dan menuai untung yang lumayan. Selain itu, berinvestasi berupa lahan atau property tidak merugikan. karena memiliki bentuk yang dapat kita olah dan juga investasi sejenis ini tidak tipe investasi hangus.

It’s been a while since I wrote about the house which my friend is building here in Bali. Building stopped for a while for the Galungan holiday. The construction of the roof is now under away and the house finally has electricity connected.

One of the two bedrooms looking out onto the open ensuite bathroom

Looking out through the back of the house

Front of the house

Stone driveway is put in

I have lived in Japan and China and have now been living in Indonesia for most of this year. It is still taking me time to try and understand how people think here. The longer you stay and the more different experiences you have, the more things you pick up everyday.

The pace of life is slow here in Bali, which is one of the attractions for me to live here. Balinese people spend most of their time meeting their friends, attending ceremonies, talking, cooking and eating. When they get on a motorbike however, it’s as though they can’t spare a minute and just have to get to their destination in a heart beat. The result is some very nasty accidents. I am sure many of them are due to speed and reckless overtaking more than anything else. Once people get to their destination they are more than likely only going to be sitting around drinking coffee and smoking, so I am always wondering what could the rush be?

I am now interested in buying a house here. The house I am interested in, is only small but it had a vacant block of land next door which was included in the price. The land would have been good for a swimming pool, extending the existing house, or even building a brand new house to live in or rent out.

The seller explained that it was on a separate title, which was fine with me. We had a meeting with the seller and the notaris this morning and discovered that the seller didn’t even own the vacant land and it was his “friend’s” land. His friend is currently working on a cruise ship and it would be some time before he got back to Bali.

The seller has bought and sold properties before, so I wondered how he thought he would be able to sell off a piece of land that wasn’t even his and didn’t have the title for the land. The house by itself is nice enough. A foreigner had been renting it up until now and it is a comfortable enough place to live and I am sure can be rented out fairly easily.

I just can’t work out why the seller wasn’t upfront about who owned the land. He said he had his “friend’s” permission to sell the land. Yeah, right! I have seen the house a couple of times now and the owner keeps dropping the price, because he says he really needs money. I am still interested in the house, so I made an offer much lower than what the seller wants.

I wonder now how he will react. I imagine most people would just walk away from the deal. What do you think you would you have done?

I went out looking at some land in a small village called Kalisada yesterday. Foreigners are looking for more and more quieter places to live near the beach, and Kalisada looks like one of those few places where you can still buy beach front property in Bali at an affordable price.

There is even an eco village under construction which is due to open next year.

The Batak style house is based on traditional houses found around Lake Toba in North Sumatra. Lake Toba is generally fairly cool at nights, so I think transporting the style of house to north Bali where is hot and dry, is a little impractical.

North Sumatra Batak style house

Open style kitchen in the Batak house

Pool in front of the Batak house

Stairs on the outside of the Batak house

The beach at Kalisada

This is the third installment of a friend’s build here in Lovina, Bali. Here are the previous entries – first pictures, update 2.

The walls are now starting to take shape and the window frames are in. The rooms seem to look bigger with the walls up. The back terrace with sliding doors looking out onto farmland looks fantastic.

I always had air conditioning when I lived in cities in south east Asia, but honestly, if you have a nice open house which allows the breeze to go right through, you really don’t need to put in air conditioning. A fan to help circulate the air is fine.

All of the windows have nice views of the garden, including the well established mango trees.

Front of the house

Bedroom looking into the outdoor ensuite bathroom

Driveway towards the house

From the terrace looking into the house

Look out the back terrace

The construction on the new villa I am following here in Lovina is going along a little slower than I (and the developers) expected. They hit a snag with the electricity which has slowed things down somewhat.

The foundations are complete and preparations are under away for the concrete to be poured the for the floor, which should be done this week. The garden is really starting to come along. The established trees on the lot are mango trees which are both shady and provide a source of delicious food for the new owners.

The property is for sale if anyone is interested and you can see more details here in the property section of the site.

A small wall is being built to provide privacy with the neighbor's house. It's going to have a polished slate finish

This will be the front entrance to the house

The driveway looking towards the house

Most foreigners who move to Bali or even while they are on holiday get caught up in the property rush. Property prices have sky rocketed on the island, while there are still a few pockets of cheap land available.

Many people dream of buying their own piece of Bali and building their own Balinese house or villa.

Construction in Bali can be quite different from what you are used to in your own country. Even in house construction Bali has it own unique customs to follow. I am learning myself, so over the next few months I am following the build of a new villa here in Lovina. No it’s not mine! But the property is still for sale if anyone is interested.

I am hoping it will be useful for anyone considering building a house here in Bali. Any questions or feedback is most welcome.

Laying the foundations

Driveway leading away from the house

Driveway towards the house. The garden is being planted now.

This will be the view from the backyard

Rice field and mountain views

The well

Here is a list of websites you can advertise your Bali properties for sale or rent for free.

Bali Expat – we have free listings available on this website
Bali Classifieds
Bali Advertising
Craig’s List Indonesia

US based sites:

US free ads
Classified Ads