Is Flipping Making a Comeback?
Ah, flipping. The very word conjures fond memories of 2002, when granite countertops and a “for sale” sign were all it took to realize a 30% ROI.
But those days are as gone as the “Reverse the Curse Sign” and renovation fever, right? I mean, have you seen the lastest issue of Newsweek? It says “recession” right on the cover.
As it turns out, though, things might not be so grim. Hoping to spark a stagnant market, the White House repealed a statute designed to stop flipping, which means distressed properties are eligible to be sold for government loans as soon as they’re purchased—no more 90-day waiting period.
And downtown Boston is apparently booming; in fact, a few condo buyers at Back Bay’s Mandarin Oriental are looking to turn their properties around before the building’s even open. Could this really be the return of the flip?
Value investors would say no, and look instead to find the undervalued asset and invest for the long term—depreciated property in Florida, for example.
But other schools of thought suggest there’s quicker money in sniffing out a short-term market disparity—in this case, the apparent undersupply of luxury condos in downtown—and cashing in.
So while you won’t find me looking for a fast turnaround on a 15th story two-bed anytime soon, for those who think they have the savvy to out-hustle the market, there may be still be room for the occasional quick flip, even in this national down market.
New Citizens, New Records, New Listings
