Nine in Ten Australian Properties Are ‘Flipped’ for a Profit
Property “flipping” – short term property trading – remains a lucrative endeavour in Australia and a new analysis reveals that nine out of 10 properties flipped by investors IN 2017 sold for a gross profit.
According to CoreLogic’s inaugural Property Flipping Report, almost 90 per cent of houses flipped within a year or two of purchasing made a profit in 2017.
CoreLogic defines “flipping” as the action of buying and re-selling property within 24 months with the purpose of making a profit.
And it is becoming less common – only 5.7 per cent of property re-sales across the country included properties that were flipped over the year to June 2017, compared to 11.3 per cent in 2002.
Only 1.3 per cent of dwellings resold over the year to June 2017 were held for less than a year, while a further 5.7 per cent were put back on the market within one to two years of ownership. Of those, 89.1 per cent resold within one year made a profit and 89.9 per cent made a profit within two years.
NSW experienced two per cent up of flipping losses compared with Victoria’s 22.7 per cent of houses resold at a loss within one to two years.
(Source; The Urban Developer Jan. 2018)
CITYLIFE VIEW: Investors are advised that property should be a long term investment, and that buy to HOLD rather than buy to SELL is the best strategy in spite of these impressive figures above.
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