The Flippers are Now Flopping…
Filed Under Real Estate General · Tagged: financial post, Flip that house, Flipping Houses, HGTV, The Big Flip, TLC
There is a great article in the Financial Post that was talking how quick turnover, flipping, isn’t as easy as it appears.
Did you know that between 2002 and 2007, Canadian home prices soared 78% from $177,100 to $315,800. If you are planning on flipping in this market, YOU WILL LOOK LIKE A HERO… But not so much anymore… As the market is softening and correcting itself, flipping is one of the hardest, if not THE hardest way to make money in Real Estate.
There are so many factors that come into play here… Right location, property, market you purchased in, renovations (and not over building for area). Plus then you have to ask the right price and get it on the market at the right time, in order to get the maximum profit out of it… To me… that’s too many variables in order to make money. This is why I believe in purchase, hold, rent and sell in 5+ years. You have cash flow, and potential equity growth.
I think that we are going to start to see the HGTV channels (and others like it) start to look at different shows than Flipping for Profit type shows, but rather we may start seeing shows that will target cheap reno’s and loving the home that you’re in, instead. The market can’t handle mom and pop flippers, and it most likely will not be the ‘in’ thing too much longer…
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