Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 4 days ago 60
Flipping is back with a vengeance. It is quite legal and involves a house purchaser completing the purchase of house, moving in, then putting the house back on the market often for profit. I have seen examples of 40% profit and accept that is achievable.
It is trading in the “futures market”. I note that houses built in 1999 and sold, off plan, for under £100,000 are now achieving well over £300,000. Usually they are “flipped” within between four to twelve months. After that period, it is my Opinion that it should not be, considered to be, Flipping.
All the time the owner lives in the house and then resells it is his main residential home and there is no Capital Gains Tax liability.
As to morality I am unsure about it. It does force house prices upwards and there is no doubt about that!
Does it deprive first time buyers? Not in the sense of numbers. It neither adds to no reduces the number of houses available.
Does it price first time buyers out of the market? In many cases I think the answer is Yes.
It is a “Free Market” which is influenced by market forces. For many it is a “Cottage Industry” to supplement, tax free, their main income. In many cases the profit from Flipping exceeds their man income.
I must stress there is nothing illegal about Flipping.
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