< Index For This Issue Offshore Real Estate Quarterly > < Subscribe Free > <  International Real Estate Market Place  > < Submit An Article > < Contact The Editor >

In the twilight of the evening local people are gathering, fully dressed in the Balinese traditional clothes. The women carry offerings with fruit on their head as if they have no weight.  The typical bewildering Balinese music can be heard from far and makes one feel a part of a different world, a magical world. This night a 3 month old baby is about to undertake his first important ceremony, one out of 13 in his life. Only after three months and after this ceremony has taken place is a baby is allowed to touch the ground as its status as a god will be changed to that of a human being. These types of ceremonies and many more are taking place constantly all over Bali in a family temple or a village temple. The Balinese culture, religion and sense of community are part of daily life for young and old. Each family compound has its own temple. In total Bali has more then 10,000 temples.

That is when the urge to own property in Bali starts or when investors see opportunities for their business. A foreigner or foreign company however can not own property directly in Bali. However, there a few alternative and safe solutions One of them is the Nominee system. You “borrow” the name of a local person to buy property. The notary deeds make sure you can act as if it is your own property. The local person can not enter, sell, rent or touch the property at all. Living in Bali also requires a permit to stay. The Government offers several options all depending on your needs. Basically you need to apply or extend a permit once every year. If you want to work or set up a company in Bali we are able to advise you what course to take.

For investors, corporate as well as private, Bali offers many opportunities in all areas.  The capital growth shows an average increase of 20 % on land only. Not only properties represent a safe investment, rental of properties can be very attractive and profitable. For hotel and resort operators and investors we confidently forecast a bright future if taken advantage of now. Many long time owners of hospitality property are not able to match the increasing demands for higher quality and better service. Therefore they opt to sell. Professional operators from all over the world are establishing their brands in Bali. They offer good training and solid positions to the local people.  Staff who are happy in their position makes guests feel more at home which can only have a positive effect on the business.

Bali is divided in more then 3500 Banjars. A Banjar is the name that describes a community district. The Banjar system is typical Balinese and has nothing to do with the government. Although the Banjar does not get a penny from the Government the Banjar as group has a very strong influence in local Government decisions.

Every Balinese is obliged to join a Banjar. The "kalian" Banjar is the "head" of the Banjar. It is a much elaborated social community system in which all members have duties and obligations towards the Banjar as a whole and towards the individual members. By its laws (named "adat Bali" (law of Bali) it teaches the younger ones how to respect each other and especially how to respect the older people. They learn how to work together to maintain their district clean and well maintained. 

When a person from the Banjar is getting married many men and women members come to help to prepare the wedding. Once the wedding takes place everyone in the Banjar district is expected to come. Also the youngsters (called Pemuda) must make appearance. The basic wedding presents are also known to everyone. Each visitor brings at least 2 kilos of rice and 2 kilos of sugar. More or a different gift is allowed but is expected to have a higher value such as coffee or plain money. After the wedding the couple sells almost all back to the local shop (warung) and uses the money to buy something useful. 

Knowledge of how the system works is vital to assist you in the best way to handle situations. 
..

Ricefields of Bali - Indonesia A Balinese Temple

For example, buying rice field land to build a villa is simple. Getting permission to build a villa from the government also is simple. But … then there is the local village leader in charge for the water irrigation system who can undo all permits by claiming the water flow will be interrupted once a building is blocking the system. Then you own a piece of land without real value and the only thing you can do is start a rice business.    Another example, in Bali with its many Temples (family temples and community temples) there are different rules. For each temple there is an area set back with different specifications. You can buy a nice piece of land close to a temple but then it is not certain you will get a building permit. Your building could be blocking the view of the gods towards the Temple.  Balinese are rightly, very serious about these issues!   There are many ways to work around these obstacles or to get things settled before buying property. It is very important to seek local professional advice about these and other matters.

.

Bali’s indigenous population of just over 3 million welcomes around 1.5 million foreign tourists (figures for 2004). There are almost 40,000 foreigners living and / or working in Bali who are extremely happy and satisfied with their decision to be on this magical Island. Some have learned it the hard way while others made sure they were well informed about the location before any commitment was made.

..

For more information on property in Bali contact Henk Blom who will be happy to assist    info@baliTOPproperty.com

< Index For This Issue Offshore Real Estate Quarterly > < Subscribe Free > <  International Real Estate Market Place  > < Submit An Article > < Contact The Editor>