Last week I was invited for an interview regarding Real estate in Ubud and possible connection to sustainable business. There were three main questions:

Do Bali Real Estate Agents have an effect on tourism and business?

Although the Indonesian Govt. does not allow foreigners to own property outright, there are several legal methods to purchase special land titles and still become an officially registered property owner in Bali. The widely used practise to use a local nominee as official owner has been used for decades as well.

Together with the increasingly frequent used option to long-term lease a property, tourists and future expats are encouraged to acquire a residence in Bali. Real Estate Agents are usually their first source of information about the legal options.

Once built or purchased, many such villas are available for rent and usually very attractive. Often they present a mix of Balinese culture with modern western amenities with tastefully arranged tropical gardens. Compared to other Countries, rental rates are reasonable, in part because of the low wages of house staff, maintenance or repair services.

In a radius of about 25 km from Ubud there may be about (E) 1500 such properties being held by expats.

Because these villas have been built trying to capture the natural beauty of the surroundings, this rental market naturally attracts those tourists, who want to live individually and save on expenses for a family accommodation.

Therefore, if only 20% of foreigner’s villas here are occupied to 65 % capacity, we are looking at 300 villas x 237 days per year = 70.000 nights spent by tourists in Ubud surroundings, based on expats initial investment into homes here.

The holiday tenants take care of their own needs, purchasing their food at local stores, rent transport and almost always have house keeping service, use laundry service, tour guides, medical service or even the low cost dental services. Accordingly, the local businesses get their fair share of income.

Also of value to the tourism industry is the army of hundreds of free tour guides, who do not recommend places based on where they receive most commission, but care about the individual want and need of the villa occupants: I am talking about the international expats them self who are owning the villas. At least part of the year they live here and know by heart about the best restaurants, salons and wellness businesses, the yoga centres and best shops, thus effectively increasing the perceived value of Ubud and its attractions.

At UbudProperty we operate an in house Rental Service and are cooperating with international rental agencies such as booking .com, agoda and air/bnb. From the combined experience we know that rental villa bookings are almost exclusively coming from Western Countries. The increasingly large number of Asian tourists to Ubud is not represented yet.

Traditionally Western tourists spend considerable more money here than the Eastern visitors. Shops and service providers talk about “bule’s“ only, when referring to their customers. “Bule’s” are from Western Countries. Eastern visitors do not come under this term.

When looking further for the Real Estate Agent’s effect on the tourism industry in Ubud,

I have to say that surely the market leader UbudPropery, but probably the other local agents too, have a different approach to marketing than their counterparts on the coast. 

In my case I decided to take up business here by following my heart and choosing the cultural centre of Bali for a reason, rather than going for a ’quick buck’ in the coastal areas.

With this mind set, established Ubud Realtors can understand better why a prospective immigrant or any foreign buyer wants to settle here. Being on the same wave length of passion for the area is of benefit to the newcomer towards finding their ideal home.

Foreign buyers in Ubud rarely bought their property based on investment benefits only.

The overall ambiance, life style, culture, the balanced climate and friendly attitude of the locals are of much importance too.

Thankfully now, despite traffic congestions, the Ubud local administration tries to preserve the unique cultural appeal to some reasonable extent. Fast-food franchise businesses,

(Mc. D, Kentucky, etc.) are no allowed to open up here. By trying to highlight the Balinese traditions, the Ubud Administration is also attracting a different set of Bali tourists to here. More on this later.

General reflections on why I chose to settle in Bali and Ubud.

Also aspects of opening up business here. 

The founder of UbudProperty, Mr. Ramon Genz, is a German born Australian.

After graduating from business school in Berlin he lived and worked in Germany until the age of 27 as industrial clerk, then sales manager.

When an appealing work opportunity came up he agreed to building and establishing a hotel on a small Island near Martinique in the Caribbean. Once this contract was fulfilled, he accepted an offer to manage a farming and industry project in Costa Rica.

The work there added Spanish language skills to the existing French ones. Soon he noted that exploiting massive areas of rainforest and hundreds of impoverished Indians was not his way of wanting to support any business. He left after nearly two years unsuccessfully trying to get around the at the time corrupt Costa Rican system. Again, the experience of tropical life style and the excitement of new challenges made returning to Germany and back to a standard job less desirable.

Therefore, in 1986 he migrated to Australia. A niche market was found. Specialized printing for the Australian Health Industry was taken up and for over a decade his rapidly growing Company kept him more than busy.

Finally, in 1998 on a short holiday to Lombok, he decided living there part time.

He purchased land and built a Boutique Hotel on the beach, which he managed until it’s sale in 2003. Due to his hobby sailing, he also started a pearl farm in Lombok, which connected with his maritime interest.

Lombok is known for having more than a fair share of business challenges, among which theft is a quite common one.

A four-year production of pearls disappeared from the ocean farming location in an organized raid.

After some riots on 2000, which at the time left half of his Hotel construction in ruins, this second blow was too much. Lombok lost it’s otherwise natural charm for Mr. Genz. He relocated to Bali. The choice to go: Coast, - or Ubud.

Ubud is about 200 m above sea level and as such by about 2 degrees cooler. He wanted to live without AC altogether and built in 560 m height, north of Ubud.

During the building process local landowners approached him, suggesting to purchase land and left copies of their land certificates. At this time he found a strategically located sizeable shop in Ubud with scope for a multitude of uses. Until a suitable use was decided on, he taped a number of the certificate copies into the windows with a note ’FOR SALE’.

Totally un intended, this resulted in the birth of UbudProperty Real Estate.

Today the business still concentrates on Ubud only and operates with 20 staff from two premises in Ubud. 

If asked about challenges in the Company set-up or operation, he adds after short reflection: “None I can think of. Whoever sets his foot on foreign soil has to realize the need to be adaptable to local customs, rules and attitudes. We are always dealing with humans. Understanding why they are acting the way they do is essential to success and smoothing out otherwise disappointing experiences. A relaxed attitude and good communication skills are of great help and appreciated or respected by all partners anywhere. Bali is certainly no exception”.

This applies even more so in Countries with limited educational facilities. Our partners in Government or business here know only one standard : Their own.

Negotiating with this understanding in mind and not believing that the partner on the other side of the table should know about our expectations is essential. It brings to foreigners the same or sometimes better success than even to locals when arranging for businesses applications and other matters. Expats who demonstrate that they understand and respect the ’local way’, reap the added bonus of receiving respect in return and the willingness to help.

Someone with the ’me and them’ – attitude, is inviting difficulties.

Often there is reference to the culture of bribery. “to get things done, you are expected to pay about 15% of the benefit you receive”, we hear. Asking for and accepting extra payment is for some professions a widely accepted evil. As example, police officer applicants have to pay several hundred million Rupiah in order to get the position. Once in duty, they need to repay the loans which they took to get the job. The salary alone is not sufficient to do so, that leaves not much choice for recuperation. 

However, throughout my 18 years dealing in Lombok and Bali, I only once had the feeling to better paying a noteworthy amount under the table. Otherwise my refusal would have landed me for a few days of ’reconsidering period’ in a jail in Kupang, due to an officer’s personal view of immigration regulations when arriving with my boat.

18 years in dealing with people in some kind of power position who often are regarded as all being corrupt, - and only one such case.

It seems to me that much depends on how we present ourselves, and/or appeal to a sense of reason and fairness.

My opinion about international expats

Same as in any other Country, expats do not ’just appear’, they choose where they hope to fit in and find the ’good life’. Someone looking into migrating to Bali has a wide range of attractions to choose from. Besides the ’travel brochure features’ there are often less openly admitted motives. - Lower cost of living, when at home the bills mount up.

For example, still today you can find quality food such as local chap chai in a Warung for as little as 10.000 Rp. With some research a nice small local house can be rent for three Million rp / month.

Some, men and women come to look for their new Asian partner. Others have been travelling the world in search for their paradise and got stuck here.

Some want to live and take up business, often without the understanding that Indonesia tries to place their Citizen first in work and that it is a real challenge to obtain a working license as foreigner.

However, here is how ’innocent newcomers’ who told me their story made their fortune and secured a good life in Ubud. -

Once, at the famous eating place Naughty Nury’s, I met a slightly intoxicated American gentleman, who had already a good number of Margharita cocktails on is bill.

He complained that he cannot come here every day for food and drink, because about 10 days in the month he has to work for a living. He then travels through Java to collect decorative curious items, such as old safe’s, statues, furniture of Holland origin, etc. These goods are sent by container to US auction houses for so called “Barn auctions”. No minimum prices are asked and the wealth over there and often jealousy among buyers is giving him ’enough return to live without a worry in the world’. 

I also like to remember the mid aged lady from New Zealand who wanted to purchase a small but pretty villa near Ubud. The price tag: 350,000 USD.

“Where do I go best to apply for a Bank loan?” She was shocked to hear that foreigners do not get a Bank loan in Indonesia. She left soon after.

3 years later she came to my office again. “That house in Kutu Kaja is it still for sale?

I am ready to pay cash”. Wow, - what happened?

At the time on her way back home she took a few wrought iron items with her. Flower pot hangers with those twisted steel arms, wall hooks for the garderobe, stands for pots and also photos from other artistically made items. She presented her little treasures to wholesalers a home, ordered some more from Bali and visited exhibitions for home decoration.

Eventually she had to source the items in Java from the manufacturer direct, in order to supply the incoming orders, which now also came from Australian wholesale businesses to her. She still has a sole-supply contract with the same manufacturer. I know, because she came last year to see me on the search for a ’seriously nice house’. “Price not so important”.

Back to the new comers to Bali –

Many have given up homes or working positions overseas, which gave at home the feeling of being ’someone’. Now some of the new-starters here without this prestige tag want to show off beyond their means in order to make friends and find acceptance in the new environment. On the coast a culture developed of belonging to a club or entering a party-going live style. Not so in Ubud.

If we would line up one group of randomly selected expats from the area Kuta to Canggu, and another one taken from Ubud, we would see obvious differences in personality, average age and appearance in each group.

This is no surprise, because if you come to Bali maybe to spend your retirement payout, the coast is the obvious choice for those, who need the allure of countless meeting places to ’just spend a good time’ and wait for their years to pass.

The coast is also the place to settle, when expats come to look for their new lady, often with hope of marriage. It is no secret that many women come to Bali from other less developed islands and are prepared to share their life with a ’bule’ who’s main value may be in receiving some regular pay from his home country.

Young Australians are frequently known to like the surf, a drink or two and the parties after.

However, we cannot generalise. In between are thousands of persons just like you and me. The extremes are just more visible.

There are countless profiles anyway. High net-worth Russians have established their ’Datscha’ in Nusa Dua. Very ’chique’ individuals cruise the streets, looking cool, reminiscent of Miami or San Francisco, where such life would come at a considerably higher price.

The large Chinese expat community all over Bali appears to be stable in their numbers. The former aspect of buying cheap and making business, especially in Bali’s expanding coastal areas is finally offset against the economic growth and opportunities in Mainland China. Migration numbers are down. 

In contrast looking at the Ubud Group we are finding that these expats have different characteristics:

Bali’s unique traditional Hindu culture can be best experienced here. The local Ubud-Balinese have preserved their original friendliness and less given in to the ’business first’ attitude we find on the coast. This is what they value. 

Street live is vivid and with more car-free shopping areas established and planned, walking and taking in the colourful environment is getting more attractive. The Ubud-expat is rarely found each afternoon on the same chair in the same restaurant. The majority of expats who had their reason to settle here are like-minded. They tend to meet among each other at their homes. Public club-style life is not what Ubud is about.

Expat parents with school-aged children, who wish for a holistic education, giving the kids a wide horizon for their life, choose Ubud, because of the proximity to some special schools, such as the Green School or Pelangi school. 

Amongst the Ubud Group you will also find a high proportion of expats in all ages who came for the search of the good life combined with seriously looking after their health.

Then there are those who grow hair under their arms again and religiously vegan people. Others, still remember ’Eat, pray, love’ and look for their emotional fulfilment here.

All together, we find Ubud-expats to stay long or settle for good. They are more committed to the culture. They try to fit in. They are aware what his special town is about. 

However, you also asked what keeps me personally here, or if I intend to leave some time later on. 

Well, I am enjoying life in Bali for 15 years by now after having seen a good part of the world already. Many of my clients have chosen Ubud after extensive travelling on their search for their personal Nirvana. Friends of mine left after living here some years. They went to try Malaysia, Curacao and Portugal and are coming back later this year.

Last, but not least, I am happily married to a Balinese Lady. Our cultural backgrounds are naturally quite different. However, on our travels she tries to catch up with mine, I try to find out what keeps the Balinese families so tightly knit together. All is working well.

Cannot break her heart by going elsewhere again.

Whereto anyway? Life is as good as it comes. I feel pity for the Queen, some presidents and numerous others who cannot enjoy the relaxed and often just simple pleasures life offers here in Bali.

A palm tree here is similar to a palm anywhere. Similar hills, rivers and lakes can be found elsewhere too. However, the Balinese way of looking at life sort of grows on you.

For example, in the western world we are avoiding talking about death. There is no denial, death is part of life. This and other real important issues in life, are talked about here in a natural way free of any stress. I think that the old Philosophers could have added valuable inspiration, would they have been able to come to Bali.

One may agree or disagree with the amazing frequency of Hindu ceremonies, but the point is, besides the children’s upbringing, this culture seems to be the main reason for the friendliness and the many original smiles we see around. That is what keeps me here, despite mismanagement in Government, the trash problem and clogged roads.

Life is as good as it comes. Did I say so already?

30 June 2018 Ramon @ UbudProperty