Why settle for a country house when you can settle in a foreign country? Carolina Buia reports on making yourself at home in nine to-die-for destinations

Overview: This legendary Indonesian island has traditionally served as a refuge for Hindu nobles, priests, and intellectuals. In recent years, its coastal lowlands and mountain lakes have also caught the attention of adventuresome Americans. The more coveted beachfront villas are in Canggu, Legian, and Seminyak, where the nightlife is lively and the restaurants top-notch. Prices start at $100,000 and, depending on the view and the proximity to the ocean, can reach seven figures. If you prefer a quieter refuge, a modest two-bedroom bungalow in the artsy town of Ubud can be had for $70,000.

Fine print: It continues to be against the law for foreigners to own property outright here. Leaseholds (long-term rentals) are available from Indonesian citizens for periods of up to 25 years, with an option to renew. This is still the easiest way to secure real estate. However, outsiders in search of an appreciating asset are increasingly turning to "freehold land," known locally as hak milik, which can be bought through an Indonesian sponsor, or nominee, who appears on the land certificate as the owner in name only. A hak milik purchase must be done through a government-certified land-deed official, or PPAT (pejabat pembuat akta tanah), and should also involve a lawyer, who will prepare a number of legally binding contracts—including one ensuring that the nominee and his or her heirs will honor your right to rent or sell the property to another party. In addition, the nominee must enter into a convertible-lease agreement stating the intent to transfer property rights to you should the country's land laws change. (Easing foreign-investment restrictions has been on President Megawati Sukarnoputri's agenda since she came to power in July 2001.) Financing is difficult to obtain in Bali; be prepared to pay the entire purchase price up front.

Hidden costs: You'll have to shell out one to two percent of the purchase price for the notary, and an annual fee of from one-half to one percent to your nominee (alternatively, you may be able to negotiate a lump sum payment to your nominee).

Rental prospects: The high season is May through October, but rental returns are strong year-round. According to Bali Vacation Properties, rates range from $250 a day in low season for a modest two-bedroom within walking distance of the sea to $3,000 a day in high season for a large oceanfront home. Since Indonesia has a tiered tax system, expect to pay anywhere from 10 to 35 percent in taxes, depending on the income derived from rentals.

Suggested real estate agent: Peter Rieger of Bali Vacation Properties (62-361-703-060; baliproperties.com).

Want a home (far) away from home? Follow Carolina Buia's directions through swamps of bureaucracy and knotty financing:
Buying the Dream: Introduction
Buying the Dream: Barbados
Buying the Dream: Bermuda
Buying the Dream: Costa Rica
Buying the Dream: England
Buying the Dream: France
Buying the Dream: Italy
Buying the Dream: Mexico
Buying the Dream: Spain