Australian family move to Lombok after Byron home plans prove costly
Karstan and Maxine Smith moved with their two young daughters from Australia to Lombok after the cost and paperwork involved in preparing to build a home in the Byron hinterland became overwhelming. Their experience reflects how some Australians are considering Indonesia as a lower-cost place to live, while Lombok’s growing property market is attracting investors.
The family say they spent nearly $100,000 trying to get their development application approved and their land ready to build. They report that meals can cost just over $1, and groceries around $15 to $20, compared with at least $150 in Australia; subsidised diesel costs about 50 cents a litre. A Lombok property agent says Australian investor-buyers rose from 15 to 50 per cent of his clients in two years, while reported villa prices range from about $350,000 to $1.2 million; Sydney’s median house price was $1.66 million in September 2026.
In short
- Byron hinterland building costs and paperwork changed the Smiths’ plans.
- They moved to Lombok with their two daughters.
- Lower living costs and a growing property market are drawing Australians.
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The case for
Moving to Lombok can be a reasonable response to the high costs and lengthy approval process the family encountered in Byron, while offering a lower day-to-day cost of living and a different lifestyle for their children. If they can meet local rules and make a secure, informed investment, the move may give them more financial room and reflect a legitimate search for a better fit.
The case against
The family’s experience may not represent the costs or risks most Australians would face, and low everyday prices do not by themselves establish that relocation is affordable or sustainable. Buying property abroad can involve legal, financial and practical uncertainties, while growing investor demand may put pressure on local housing and communities; the family’s difficulties with one Australian development application also do not show that moving overseas is the only alternative.
Explained simply
Lombok is an island in Indonesia, east of Bali, where living costs are generally lower than in Australia. Australians can visit Indonesia relatively easily, but living there long term involves immigration rules, and buying or building property can involve local laws and paperwork.
Byron Bay and its surrounding hinterland, in New South Wales, are popular places to live, but housing and development costs can be high. A development application is a request for local council approval to carry out building work; preparing one can involve fees, plans and other requirements.
Lombok’s lower day-to-day costs have drawn interest from some Australians, while overseas buyers have also shown interest in its villas. The trend matters to people weighing up where they can afford to live, and to local communities as property demand grows.
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Originally published by Daily Mail as “Aussie family whose plans for their dream home near Byron Bay turned into a nightmare pack up and move to an Indonesian island – and couldn’t be happier”.