1. Legal Systems.  If we had some legal dispute relating to an investment in Indonesia, we would not have the same confidence of outcomes as would be the case with Australian investments.  Legal processes may be slow, may seem to favour locals, and it may seem that financial contributions are needed.  However, we can see that many “expats” have invested and are doing well – so we are prepared to rate this as a low risk.
2. Government Changes.  There are existing regulations controlling foreign investments and visas, but a future government could change these to our disadvantage.  We figure that the current president (SBY) is a fairly steady hand on the tiller and he has another 3 years, and then is well placed to get a second term.  If changes did occur, and we felt it necessary to leave, the investment would still be with Hendra’s family, and if we have an accommodation business running, it could continue providing that Bali tourism remains healthy.
3. Terrorist events.  The two events (2002 and 2005) have been a big setback to tourism.  Another event like 2005 will be a setback for a year, so is comparable to the impact of a drought on farmers.  It’s a risk we need to accept, and hopefully there will be some good years coming.
4. Medical System.  There are reasonable clinics in the south of Bali, and some medical insurance to cover use of these facilities will not be too expensive.  For major dramas, if we have the time to make such choices, we may decide we are better off back in Australia.  For now, neither of us have health issues that should hold us back.
5. Rising sea-levels.  Global sea-levels have risen about 15 cm in the past 100 years, and predictions are that in the next 100 this could be more like 25-30 cm.  I did not do any measurements, but I think is that the block is about 1 m above high tide, and the buildings are then built up a further 75 cm.  Hopefully sea levels won’t be an issue in our shorter time frame.
6. High tides, flooding, tsunamis.  There are coral reefs protecting the beaches so the Bali Sea is relatively calm, although there are periods each year when it gets rougher than usual.  There are several streams flowing into the sea in this project area, and there was erosion around these estuaries in recent torrential downpours.  Our block is not directly adjacent to any of the streams – the closest is diagonally across the street at the back of the block.
7. The Property Market.  The 80 houses this company has developed and sold to expats have created a small sub-market.  A number have re-sold to other expats and have maintained or increased their values.  If circumstances change to discourage expats from investing, this could disrupt the sub-market, so that’s a risk which we hope is low.
8. Is the price right?  The land for all these has sold at a fixed price (€5,000/are for absolute beachfront) and the houses they sell are off a price list where there is a small amount of room to negotiate.  So this issue is linked to the Property Market issue above.  These prices seem to be maintained and increase when properties resell.
9. House insurance rates.  They are lower than in Sydney – about 60% - but then building costs are lower, so my guess is that the risks (fire, flood theft,...) may be roughly comparable.
10. Property Ownership.  An Indonesian citizen needs to be on the property certificate.  For almost all the houses they have done, the Balinese director of the company is the person.  But we will be able to transfer the title to Hendra’s sister.  We will use similar contractual arrangements to those used for the other properties.
11. Visas.  We met with an agent who assists with visas and we are happy with her proposed arrangements.  There are costs both to the government and to the agency, but these seem acceptable.  There are also tax issues that need to be worked out.
12. Fewer contacts with family and friends in Australia.  We could return annually, or maybe less often if everything keeps us busy.  Maybe we can talk family and friends into Bali visits.  And the other counterbalance is that we will have more contacts with Hendra’s family.
13. Will we be as happy in Bali?  There will be lots of differences.  Some things that are readily available in Sydney like theatre, cinema, sushi or really good bread will be harder to get. Other thing will compensate like hot springs, the beach.  Some things will be more expensive like wine.  But there are replacements and compensations.  Our plan is to re-assess in 5 years to decide if we should move back.

So you get the idea of what we mulled over and discussed in detail.  Thanks very much for raising many of these – it really helped.