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Real Estate - a Reality Check

Bali offers a vibrant culture, good weather, friendly people and a creative yet relaxed atmosphere for many. A major reason many people choose to live in Bali is due to the prices, meaning a relaxed lifestyle. These days, however, a lot has changed and the island is actually a relatively expensive place to live, especially if you are earning rupiah. Without exception all expats I know say that Bali is overpriced and things are becoming unrealistic.

This island doesn’t have the infrastructural, environmental, education and health systems in place to support rampant development which leads to continual price hikes, including overpriced real estate and rental properties. Price increases in all sectors will only lead to a wider rift between the rich and the poor, eventually leading to crime and social unrest.

Some facts about what is on offer: Due to corruption, many of the island’s roads are worse than roads from the times of the Romans, and people drive like there is no tomorrow. Local people habitually burn rubbish every day of the week or dump it in the waterways, leading to environmental destruction, flooding and disease. Education is horrendously expensive compared with many countries where it’s free. Healthcare is substandard and pricey, and if you don’t have insurance you could be in for a shock at some of the international-standard facilities.

For rentals, terms are one of the biggest issues. Most properties are rented out yearly, often a number of years upfront, which suits the landlord if he has a gambling debt or relative to cremate. What if you end up unhappy with the property or the area? Bad luck!
There is a cultural misunderstanding here. Locals assume that since some people agree to these terms, that either it is the norm in other countries or we all work for oil companies. The reality is, we also receive monthly wages, have families and need to plan for the future.

People involved in real estate need to take a reality check and think about what exactly they are offering, because it’s no longer “paradise”.

Vaughan Hatch has immersed himself with Balinese culture, living with locals in Bali since 1997. He speaks fluent Indonesian and Balinese, and is unashamedly addicted to playing gamelan. A linguistic, archaeology and publishing graduate, he works for indOKiwi ‘linguistic and cultural solutions’ in Sanur. Email him on contact@indokiwibali.com or call (0361) 8427030 for further queries.

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