Lead article in today's SHT highlights property flipping. Seems it is hip to flip.
It also artificially drives up prices faster and higher than the underlying market will support. At some point the hip will drip as their investment gets squeezed.
One wonders how much of the current downtown boom is driven by investors that have no intention of ever living in the property they acquire. The flip mentality (aka greed) also has spread into the residential neighborhoods where it causes other issues - more absentee landlords - when the resale time begins to stretch.
Apparently impatient investors in the stock market boom of the 90's are now seeking to profit from real estate markets. The same run up in prices that happened in the stock market is now seen in selected real estate markets. Aren't we the lucky ones.
Of course this market will also correct itself at some point. In the meantime it is really difficult to get year round residents to come here to live. Some good people will leave, others will not come in the first place because they cannot afford to live closer than 20, 30, or 40 miles away.
But the flippers don't care, they want to make a buck. Are the hip flippers shooting us all in the foot?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment