The House Flipping Trend
When most people think of real estate investing the first thing that comes to mind is house flipping. There are even various shows about it on cable television. The world over, people are turned on by the concept of purchasing and fixing up a piece of old property for a potential big pay off. More so than ever actually, with more than 6% of homes on the market being from house flipping as of 2016. There is no doubt that the topic of house flipping can be very enticing, that is why we’ve decided to go over it a little bit in detail.
What is House Flipping?
Without going into too much detail right away, house flipping is essentially buying a house or property with the intent to fix it up to sell, or simply resell for a profit. Sounds simple right? Well it isn’t always THAT simple, as there are many factors that can impact the success of any house flipping venture such as budgeting issues, influx in crime rate of an up-and-coming neighborhood, and bad timing among other are just a few of the risks facing any would-be house flipper.
Popularity
In 2018, house flipping reached an all-time high with nearly 50,000 properties being flipped as a form of investment. These are the highest rates in house flipping in over 6 years. This of course comes with a price as the landscape of house flipping continues to change as it gains popularity. Available properties and rising home costs are two of the biggest factors created due to the rising popularity of the trend. The more homes that are flipped, the less properties are available leaving people to look into areas like suburbs and new-build which begin to dip in to the return on investment.
Is it a Good Investment?
Of course the landscape of house flipping isn’t the same as it was six years ago, there are less properties and it is more challenging to make a larger profit, however as they say, “where there’s a will, there’s a way.” We as investors must embrace the fact that we, much like the landscape of investing, adapt and change based on the number of transactions taking place over time. As the trend continues to rise so does the ingenuity and resourcefulness of investors and enthusiasts. While some decide to face the unknown head on, other find solace in the old school method of purchasing a property and using to make money as a rental property.
It goes without saying that there is no such thing as a bad method of investing, unless of course you’re just handing money away for no reason. With proper education and dedication, one can turn even the most modest amounts of money into a fortune, and we’ve seen this time and time again throughout our lives whether on TV, in person, or on TV. This is no different for house flipping. Want to learn more about how Buckeye Northwest Realty can help with your future investments? Contact us today!
