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HOUSING MARKET  My intent here is to provide the reader with enough information about the current real estate market in Bali to make an informed decision. Hundreds of properties are currently for sale on the island of Bali; in this article I’ll deal mainly with the luxury estate market, primarily because these types of properties offer the greatest value on the island. As of January 2002, there are less than 100 luxury homes for sale on the island of Bali. Why so few? Most Expats aren’t interested in selling their dream homes; they prefer to rent them when they’re not in Bali. The other reason is thousands of Expats have purchased land in the last three years, and have yet to build a home on it, many are waiting until they retire or have enough money to build their dream home. Many of these homes (called villas) rent for $200 to $600 dollars per night; that’s current January 2002 rental prices; previous to the Sept 11th incident, these same villas were fetching 50 percent higher rates; the old supply and demand rule soon took over and rental prices fell like a led zeppelin. Most of the real estate companies on the island charge a 20 percent commission to rent your villa short term, and 10 percent to rent it long term.

In Bali you’ll get a Castle fit for a King and Queen, for about the same price as a cracker-box in America. Let’s talk specifics; the photos depict a brand new 6500 square foot home that’s currently on the market for $375,000 dollars. A home like this in America would easily fetch upwards of $3,000,000 to $5,000,000 dollars. Why you might ask, well let us examine this home in detail. The old adage location, location, location still holds true, and this sweet dream is located only 1 mile from the world famous downtown Ubud area. Ok the property has a great location, and it’s convenient to town, what about the surrounding area, and who are my neighbors? Take a look at the pictures, what do you see? Beautiful countryside, exactly why so many Expats choose Ubud. This magnificent home is situated deep in the rice paddies, with beautiful panorama views of the mountains, and 5 minutes away is the bank, post office, super market, garage and dozens of fabulous restaurants that serve great meals for less than $4.00 dollars. Here in Ubud you can have your cake and eat it too.
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Next is what architects call streetscape, does the home make a statement as your approaching it from the street?  Pictures (d, e, f) are impressive to say the least. What about the style of the home, is it attractive, would most Expats be interested in purchasing a home like this? Let see what the rest of world thinks……………….. 
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INTERIOR DESIGN

One of the most important parts of any home, the moment you step foot through that front door your senses should be saying more, I want to see more. Now for the exciting part, let us go inside this wonderful home and have a closer look. The bottom left picture is the first view one encounters as they enter this stunning villa, the formal living room features, Javanese antique doors, 12’ designer tray ceilings, and rich marble floors. Notice the warm and inviting colors of the walls and ceilings, a classy touch indeed. Now that’s what I call a Kitchen, custom made teak cabinets with solid marble countertops, built-in breakfast bar and large working center island, this room features sliding glass doors that open directly to the pool terrace. 
 

The Roman marble bath is covered in rich marble, from floor to ceiling. The bath fixtures are made from gorgeous onyx, and how about that 8’ foot marble vanity with his/her sinks and classic antique mirrors. The huge 24 X 20 Master Bedroom features 11’ designer ceilings, and polished marble floors. This charming room has a private Garden in the rear, complete with soothing water fountains and a large oval shaped outdoor bathtub.  4 Bedrooms, 5 Baths, 2 Living Rooms, Gourmet Kitchen, Dining Pavilion, Office, Laundry, and Maid’s Room. This brand new villa comes fully furnished with beautiful antiques throughout. Talk about icing on the cake, most of the luxury villas for sale include, Hi Fi Stereo Systems, VCD/DVD Players, Satellite TV Systems, Pentium III Computer Systems, Telephone Systems, Bed Linens, Towels, Kitchen Utensils, Cookware, Flatware, Tableware, Toasters, Blenders, Microwaves and everything else one would need in a luxury villa. Most of us can only dream about owning a home like this in America, here in Bali your dreams will become a reality. 

PROPERTY TAX

Indonesia has complex property tax system, rather than bore you with all the details I’ll use my own tax bill for the year 2001 as an example. The taxes due on my new 5000 square foot home were a staggering $29 dollars, I know what your thinking, $29 is what you pay for a good meal at a restaurant. If this home were in America our property taxes would be a staggering $7,000 to 12,000 dollars. When you turn 65 and hopefully retire (if you can afford to), you can kiss your Social Security check goodbye, if you’re like my parents and retired you’ll need that government check just to cover your property taxes. Another reason expats choose Bali as the place to retire.

STARTING A BUSINESS

Thousands of Expats have successfully opened a business in Bali; everyday dozens of new shops are springing up all over the island. The local government requires a Business License to legally operate a shop, store, garage or any other type of commercial business; even know 95 percent of the existing shops have no license, the local government doesn’t seem to care or do much about the situation. Some Expats that operate a business in Bali obtain a license from the local government; the process takes about 60 days depending on the size and type of business you plan to open. Some of my Expat friends in Ubud have their own business, there’s Marcel from France who opened an Internet Café in Downtown Ubud about 16 months ago, Internet Café’s in Ubud are nothing new mind you, currently there’s around 30 in the downtown area, and just last week I saw a couple new ones that recently opened. Bali has the fiercest business competition of any place I know. Whenever an Expat or local starts a new type of business the   competition opens 20 similar businesses within a few months. The Balinese are the world’s greatest copycats, creating the same type of art for 2000 years; they’ve master the art of replication with the greatest skill I might add. The Expats however, are entrepreneurial in nature and have mastered the art of ingenuity; this is what sets Marcel’s Internet Café apart from all the others, and has led to his great success in such a highly competitive market. His idea was to combine multiple services all under one roof, here you can enjoy a cold drink, have a piece of chocolate cake, send emails, make copies, send faxes, laminate documents, have a web site designed, make a international telephone call, change your American dollars to Indonesian Rupiah, rent a house, buy a variety of local artists paintings, have business cards, stationary, menus or brochures made and a slew of other services that Marcel provides his ever growing customers. Ubud is filled with many successful Expats, from all walks of life living out their dreams, like me we’ve all made the Great Escape From America. 

LICENSE COSTS
Obtaining a business license highly depends on the type of business you plan to open, Internet Cafes, Clothing Boutiques, Art Galleries, Jewelry Shops and most other small businesses are relatively simple, the license will cost you about $500 dollars or less. If your goal is to open a manufacturing operation, 40 room hotel, or supermarket this type of business would require a very complicated process that would entail hiring an attorney, bribing some jealous government officials, and waiting at least 6 months for an answer, the cost $10,000 dollars or more. 

BANK ACCOUNTS

The Republic of Indonesia is an Offshore Tax Haven; Expats can open a bank account with a passport at several International Banks; in downtown Ubud you have Bank of Central Asia (BCA), this bank offers online banking, VISA debit cards, and currently pays 17 percent interest on your money. The Bank International Indonesia (BII) allows Expats to open a bank account with a passport, this bank also offers online banking, VISA debit cards, and currently pays 18 percent interest on your money. Indonesia has banking secrecy laws; nobody has access to your account information.
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