Flipping properties is nothing but speculator driven inflation of property values. Cities love it because they can use it to drive up evaluations for property taxes. New homeowner is stuck holding the bag.
Stuck holding the bag...
While the big boys line their pockets over and over...
Absolutely!
This flipping of homes is ultimately toxic to the viability of communities by driving the price of housing to the point that it squeezes others out of the home market, causes others to overextend themselves financially, or squeezes money out of other markets and causes a lag on economic growth.
When you’re looking at housing costs ideally not exceeding 25% of take-home pay, I’m amazed to see so many communities in California where the average price of real estate for a family of 4 seems to hover at least 450k. Is there average take-home pay in these areas 120k per year? Hardly.