A Bali Journey Part I

Perhaps it’s because I’m originally from the USA, and also because of my age (mid-sixties) – I’ve been wondering why there aren't retirement communities here in Bali? Labor for taking care of retired people is expensive in first-world countries, which is far from the case in Bali. Not to mention the fact that construction costs are perhaps 20-25% of what they are in the first-world.

So what gives? Is it the hospitals? By and large the private hospitals in Bali are fine. You would think that Bali would be overflowing with retirement communities.

The Trend:

The worldwide numbers for a global aging population are alarming. 

“...the most formidable demographic challenge facing the world is no longer rapid population growth, but population aging.”

The Effort:

For the past 3 years I have been actively trying to build partnerships in order to get a single decent-sized retirement community started. During the Summer of 2022 I successfully pitched the team behind Nuanu, a massive 44 hectare project in Tabanan. By October the team incorporated an active senior living project into their plans.

At first the project received .7 hectares of land, as seen in the slide above. Later it was updated to over 2 hectares and approximately 180 residential units. I was ecstatic. Seniors would have not only a significant residential area for themselves, but they would be able to walk through the beautiful Nuanu landscape, making their way to the beach. The only vehicles allowed would be electric powered. No smog for my seniors!

An architect was assigned to our team. More happiness. Then… the meetings started to trail off. After a few months the architect was gone and a consultant took his place. More meetings. Then less meetings.

Finally I confronted the team and they admitted that the senior residential project went from low priority to no priority. I was back to square one, after 1.5 years.

On a fortuitous day, while blocked in an overheated Bali traffic jam, I heard my name being called. It was Johannes from the Nuanu team. He wants to meet up and continue the conversation about building a retirement community in Bali. That was probably the best traffic jam of my life lol.

With very little to lose I met Johannes and he told me about land in Ungasan, on the Uluwatu peninsula. I took a look and it was very impressive, and about 1.5 hectares in size. Would I meet with the Balinese landowner, Johannes asked? Why not?

So a week or so later I met with Ibu Agung, on her other property near Sanur, a resort that was doing well until COVID-19 hit. She hasn't recovered.

At 72 years of age, Ibu Agung is a delight. But her husband is confined to his room, due to health issues. And Ibu’s two sons are not suited for business, according to her.

The idea of a retirement community where Ibu can share her Bali traditions, and simply interact with people her age, was very appealing to her.

Given the cost of the land, my partner (yes I've joined forces with Johannes) offered a revenue sharing agreement and Ibu accepted. This kind of arrangement is rare in Bali, as most Balinese want 100% of the land price at closing. It means we pay far less for the land and then share in the upside with Ibu, surpassing the simple math of paying an upfront price per are – if all goes well.

Not long after the signed MOU (memorandum of agreement), concerns started to surface regarding missing land certificates. More delays and thoughts of, “Maybe this deal needs to be abandoned as well.” 

At my age I'm not sure how much longer I can start to build retirement communities and see them fizzle out. On the other hand, the famous American architect Frank Lloyd Wright (FLW) designed the Guggenheim museum at the age of 76. 

So I can't give up quite yet. (Btw, I’m not comparing myself to FLW).

Here's a graphic of how many land certificates are still missing – 7 certificates missing and 2 sold:

We have heard, from Ibu’s notary, that the rest of the land certificates are forthcoming. If the notary can finalize everything within the next week or so, we can arrange for a signing and put the deposit down on the land.

If I told you that developing property in Bali is easy I’d be lying. It’s a beautiful island filled with (mostly) kind, spiritual people. But it’s a different culture and we’re the non-natives.

Am I confident it will all work out? About 95%. Will it be worth it? Absolutely!

The Community:

This is the first draft of our development concept for approximately 150 are in Ungasan, Bali. The above is an example of a block drawing, an initial Lego block approach to defining spaces. (The area in red is off limits, as well as the green space in the upper right.)

Some early ideas:

The frontage consists of a large commercial area, with the main entry under one of the commercial spaces. That of course can be changed to a dedicated gated entrance. 

You may have also noticed another entry between the two main commercial areas. Even though the community is private and gated, one can imagine a large glass door (locked w/ key card access) with a view to the main community area (the swimming pool and surrounding, almost circular building). This would entice people who are just visiting the commercial area to “take a peek” at the exclusive community space (and maybe take a tour – or even join!).

Once past the main entry there will be parking on the left side. We envision golf carts and bicycles for community transportation, with cars and scooters restricted to the parking area. We also envision a few vans available for shuttle services. (The parking area currently looks like a closed building but it will most likely be an open space with a roof for sun and rain protection.)

On the opposite side of the parking area is the community lobby. Here we will have a concierge desk for helping members as well as visitors.

Some ideas for the Community Center:

Large swimming pool

Small shaded swimming pool

Gym / Yoga Space

Sauna

Steam

Cold Plunge

Full-service Spa & Salon

Mini Spa

Restaurants

Cafes

Bar (with alcohol)

Hydration Station

Juice Bar

Mini Movie Theater

Performance / Lecture Space

Hobby Space

Gaming Space

Lounging Areas

Concierge Station / Lobby

Residential Storage

Laundry Service

Staff (Repair, Security)

Wellness Clinic

24 hour Nursing

Community Gardening

The oval-shaped space would be the movie theater / lecture space.

Continuing the tour, we can see three apartment-type residences (below). Two of them have 12 apartments each and one has 30 units.

Finally, we plan on having 8 villas available for members who want to build their own houses.

As mentioned above, this is the first draft and it is surely going to change. 

Now more than ever we are asking for your advice, to help make the community as amazing as possible. For those who want to know the prices, all we can say for now is that we want to make living part or full-time in Bali as affordable as possible (given the ample amenities and services). So a few ways to do that is to have a lot more apartments than villas. Secondly, membership tiers based on the type and use of various amenities and services will most likely be necessary.

At this stage, the more advice we get the better the solution!

Thank you!

Neill