Flipping Condos
Real estate investors are into condo flipping in Las Vegas. Condo flipping can become a pitfall for them if they don’t consider all the financial liabilities and tax payments that come along with the real estate investment. They look up to condo flipping for the long-term capital gains, forgetting the cost involved in the buying, refurbishing and selling the condos. They predict tax of 15% or less on the investment, which is not the case.
In Las Vegas more than 6000 apartments are being converted into condos and about 40,000 mid-rise and high-rise luxury condos are coming up. Las Vegas is considered as one of the emerging condo market in the world. There was an increase of $10,000 in the median price of the houses in July 2005. The high-rise units, which were earlier priced at $200,000, were being sold for $500,000 now. Celebrities who lend their name to many Las Vegas condo projects are given condos, which they could sell at a later stage.
May 9th, 2006 at 11:54 pm
Is “Flipping” Real Estate really that Smart?
The temperature in Delray Beach, Florida hit 100 degrees last summer. But still, buyers lined up and waited outdoors for days. Many buyers would spend $350,000 for one-bedroom condo jut to resell the unit immediately.
“Flipping†is a real estate lingo that means buying and reselling properties quickly for bigger profits. There are even points were people bought and flipped contracts before they were built. This is very rampant in South Florida and in other popular real estate markets.
Miami’s preconstruction market has seen high investor returns in the United States. More than 80% of condo units that were purchased were only speculative investments. People who bought them did not even have any plans of living in those units.
People go for this method since they see more than 400% investment returns. They are able to get back the money they spent in constructing the condo for a year four times bigger. It is for this reason desperation hit South Florida and other big real estate markets. However, the place is still where people buy units where they actually plan to live in.
By Mabelle Sese
Miami Real Estate