Posted on 03/03/2016 10:27:58 AM PST by Citizen Zed
House flipping - buying and reselling a home to make a quick buck - has risen in some hot housing markets, prompting concerns that local housing bubbles could be developing, according to a report published on Thursday.
The report by RealtyTrac found that home flipping in 12 active metropolitan areas last year was above a peak set in 2005, just two years before the U.S. mortgage market started to collapse, leading to a banking crisis and the Great Recession.
Profits generated by home flipping also hit a 10-year high, with home flippers netting an average $55,000 per sale before renovation and transaction costs. Profits topped $100,000 in expensive markets such as New York and Los Angeles.
(Excerpt) Read more at nbcnews.com ...
I love flippers. Two houses in my neighborhood were flipped. The repairs were extensive, and they helped maintain property values of the entire neighborhood.
Flipping usually involves fixing up the house, not merely buying it and signing the sale papers a few days or weeks later. IOW, there is actual improvement of the property, which actually increases its value. It isn’t all fluff...and the people doing this are making money, meaning that they pay more in taxes; they are also buying more materials, increasing profits elsewhere, and they are many times employing people. So why, exactly, is this so bad?
It’s called house flipping. There’s good money to be made, depending on the location and demand.
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