Flipping Properties : In today’s market, is it worth the risk?
"Flipping is a term, used primarily in the United States, which refers to the practice of buying an asset and quickly reselling (flipping) it for profit.
Though flipping can apply to any asset, the term is often applied to the practice of buying real estate at below market value, making needed repairs and improvements to the property, and reselling it for a higher price (generally near market value), thus making a profit."
Source: Wikipedia.com
Personally, I don’t recommend flipping during a stagnant or declining market for the obvious reason that there is a greater risk that you might not make a profit. Flipping sounds great because it is often associated with profit but it’s not always as easy as how other people are describing it.
Here is another insight that gives a more thorough review of flipping, the work involved and the costs to consider.
Incidentally, a new site was recently launched dedicated to flipping: fixtoflip.com. Its mission is to "offer the resources to make fixing and flipping houses easy, enjoyable and profitable."
However, as Joel Burslem of the Inman News Blog : A New Community for Flippers pointed out, it’s a little too late to market the website now. Now is not the best time to flip a property. There’s just too many warning signals: decline in property values, decrease in buyer activity, increase in foreclosures and the meltdown of the subprime loan industry (which has fueled a lot of property buying by making it easier to take out a loan).
But, it’s still good to invest in properties as a long-term investment. Now is the perfect time to hunt for good bargains. There are still opportunities to be made in real estate specially for those who are willing to hold on to their investments for awhile, until the market becomes more favorable again.
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POSTED IN: Breaking News, Buying a Property, Foreclosed Properties
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