Thursday, May 03, 2007
Does 'Flipping' Contribute to HPI Figures
BBC News: Dirty money exploits housing boom
New-build properties in the UK, have been at the heart of the housing boom - but valuations are difficult, and rapid resale's are far from uncommon. 'Flipping' may account for the large numbers of new-build apartment type property lying sold but empty across vast swathes of the UK.
Posted by enuii @ 06:47 PM (196 views) Add Comment
6 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. layers said...
"Does 'Flipping' Contribute to HPI Figures" - easy one this. Well, does 'Flipping' benefit the HPI figures, or does it not? If it does, then the answer's 'Yes', if not, 'No'. Que bono, who benefits...
2. disgustedofyork said...
The need to launder money might offer a rational explain the seemly irrational behaviour of the property market. Flipping, buy to sit, and paying way over the odds start to make sense when you have a large wodge of dirty money money to spend...
3. disgustedofyork said...
Err. I mean "The need to launder money might offer a rational explanation to the seemly irrational behaviour of the property market"
4. indiablue19 said...
Whether flipping is necessarily a money-laundering scheme or not, it is certainly a prime way to drive up house prices and prevent the stabilisation of new neighborhoods by passing along ownership a few times before anyone moves in to the property. This was a major activity in Florida not long ago, before the crash. Speculators bought homes that weren't yet built and sold them on for much higher prices as the middle-man between builders and buyers. This was also big business in Spain, and there are probably many holding properties there now that they haven't yet closed on, never intended to live in, and will never be able to sell for the purchase price they're committed to. Imagine these deals will fall through, never having come to closing, and speculators will forfeit deposits, like they did in Florida, and leave the big losses to the developers.
5. lvmreader said...
My sources in Japan tell me that many cities in Japan (including Osaka) are now basically Yakuza run. The Yakuza used to make most of their moeny from drugs, prostitution, gambling and..... real estate.
Yes folks, real estate.
Now with land and property prices in the toilet still after 17 years, the Yakuza are now moving into more legitimate businesses. A mark of things to come?
The same pattern is being repeated world wide.
All should read the following blog on this disturbing rise of organized gangs which are taking over the Nation State paradigm:
How Gangs control one of the largest cities in Brazil
Networked tribes, infrastructure disruption, and the emerging bazaar of violence. An open notebook on the first epochal war of the 21st
6. Shipbuilder said...
Rumour has it that a significant portion of HPI in Northern Ireland is 'flipping' to launder terrorist/gangster money.