Flipping in Bali: A Strategy for Fast Returns
The resort real estate market is undergoing a transformation. While investors once entered projects mainly for long-term rental income, today more attention is shifting toward strategies focused on rapid capital turnover. One of the most talked-about approaches is flipping - purchasing a property at an early construction stage or below market value and reselling it later at a higher price.
The concept is simple: an investor enters a project at launch, when prices are lowest, and exits the deal months later or after completion. Unlike the traditional “buy and rent” model, profit here is generated not from rental income but from the appreciation of the asset itself.
This strategy works particularly well in fast-growing markets. When districts develop quickly, infrastructure appears within a year, and demand from international buyers remains strong, property values can rise by dozens of percent even before completion. An additional growth driver is developer presales - early offers that are typically significantly cheaper than the final price of completed units.
A typical transaction follows three stages: the investor buys at the foundation or presale phase, the price increases as construction progresses and the area develops, and the property is resold near completion or immediately after handover. The average investment cycle ranges from six months to two years.
In practice, profitability varies depending on the deal. Conservative scenarios may yield about 15-25% annually, realistic projects often bring 25-40%, and particularly successful investments can exceed 50%. It’s important to understand that such results are not random - they depend on analysis, correct asset selection, and precise timing of the exit.
Most beginner mistakes are not market-related but strategy-related. Many investors focus on visual appeal rather than liquidity, fail to verify developers, purchase overpriced units, exit too late, or overlook taxes and transaction costs. As a result, what could have been a profitable strategy turns into a risky experiment.
For this reason, experienced investors often work with professional brokers and analysts. Their role is not just to show properties, but to identify projects with real growth potential, access off-market presales, forecast area development, and calculate net profit with all expenses considered.
Flipping is not suitable for everyone. It is ideal for those who want faster capital turnover, are willing to wait several months for profit, and approach investing as a strategic process. Those seeking steady passive income or zero risk are usually better suited to traditional ownership models.