Friday, March 21, 2008
Who would’ve thunk it? Flipping still going on.
It may be difficult to believe but speculators are shrugging off the bleak outlook for the housing market by continuing to invest in new-build developments in the hope of turning a quick profit. Many of them are lured by stories of the substantial gains made at the height of the boom. But today, despite falling house prices and warnings about the growing risks of buying off-plan, investors are still buying flats and houses with the aim of “flipping” them on to another investor before the building is complete. According to Beers, the surge in flipping is being fuelled by a lack of property for sale.