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Real Estate Trading?
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Hunny Gee
Posted: 11 June 2013 05:05:15(UTC)
#1

Joined: 17/05/2013(UTC)
Posts: 8
This is the wild side of real estate investment. Like the day traders who are leagues away from a buy-and-hold investor, the real estate traders are an entirely different breed from the buy-and-rent landlords. Real estate traders buy properties with the intention of holding them for a short period of time (often no more than three to four months), whereupon they hope to sell them for a profit. This technique is also called flipping properties and is based on buying properties that are either significantly undervalued or are in a very hot market.
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steven woodford
Posted: 11 June 2013 07:53:43(UTC)
#2

Joined: 20/01/2012(UTC)
Posts: 89
please stop this.

no sarcastic comment from me today.
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Alan Anderson
Posted: 11 June 2013 10:17:33(UTC)
#4

Joined: 02/04/2012(UTC)
Posts: 171
Why is Citywire allowing this embarassing cut and paste from Hunny Gee day after day?
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Prestonni
Posted: 11 August 2013 13:20:11(UTC)
#5

Joined: 22/10/2012(UTC)
Posts: 8
I'd say leveraged property 'flipping' is a great trading model to use in the uk right now and for the next 18 months or so. I'd stick to highly property liquid (ie lots of transaction) areas of the uk just in case their is a negative economic surprise. Id stay clear of out of town assets and large value houses as these have the poorest liquidity generally. Denmark as one example demonstrates how debt fueled asset bubbles in property markets can create extreme valuation changes. In the Uk's case in a positive way, in the near term! Listed securities have already seen significant upswings in valuation as the stock markets discount future asset values more quickly than their illiquid cousins. For further analysis please follow the link. Very happy to discuss..
http://www.capitalsynthesis.com/in-focus-the-uk/
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Alan Selwood
Posted: 11 August 2013 13:30:49(UTC)
#7

Joined: 17/12/2011(UTC)
Posts: 3,379

Thanks: 735 times
Was thanked: 7200 time(s) in 2183 post(s)
leveraged property 'flipping' :

This sounds like a government source trying to get us all to spend loads of money of stamp duty, conveyancing charges and estate agents' fees.

Is this really a recipe for success - or is the writer of the thread yet another person aiming to promote his/her own business through the attached link?
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1 user thanked Alan Selwood for this post.
Prestonni on 11/08/2013(UTC)
Prestonni
Posted: 11 August 2013 13:45:01(UTC)
#8

Joined: 22/10/2012(UTC)
Posts: 8
Hi Allan, I can assure you I make no monetary gain from Capsyn. The site mentioned is a non profit site run by private investors for private investors to help each other. In a world where savings rates are zero we need to help each other. I hope the article is useful. This is government enabled housing bubble that of course will collapse very soon. In the mean time find a way to protect your assets and gain a yield. This is the challenge for us all. All the best to you.
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Alan Selwood
Posted: 11 August 2013 17:24:15(UTC)
#9

Joined: 17/12/2011(UTC)
Posts: 3,379

Thanks: 735 times
Was thanked: 7200 time(s) in 2183 post(s)
Buying and selling relatively illiquid assets that are subject to stamp duty and legal fees in the hope of making a turn seems (on average) fruitless to me. It relies on the expectation that regardless of value, someone else will come along to take the asset off your hands at a profit, while you go to another asset (bought from someone else!) in the hope that 'a bigger fool' will come along for that asset in turn.

Given the costs involved, this has to be (on average) a worse than zero-sum game. Not for me!
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Stephen Garsed on 12/08/2013(UTC)
steven woodford
Posted: 12 August 2013 08:40:03(UTC)
#10

Joined: 20/01/2012(UTC)
Posts: 89
surely this is massively risky anywhere not commutable from london (how stable are house price rises anywhere else?)

the idea seems to be focussed on first/second time buyer type properties, and would have the effect of adding a few grand onto what that first/second time buyer eventually pays for them, leaving people with larger mortgages, further inflating house prices and digging the country into an even bigger hole.

and some people think buy to let is unscrupulous...
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Shaun Chandler
Posted: 23 September 2015 02:16:55(UTC)
#12

Joined: 23/09/2015(UTC)
Posts: 28
This just doesn't hold up to scrutiny

Give me 2 good reasons why this is not a huge, unnecessary risk

- especially given the ample stable opportunities elsewhere
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Dian
Posted: 14 October 2016 22:59:09(UTC)
#13

Joined: 09/10/2016(UTC)
Posts: 351
I heard speculators are trading houses in countries such Canada, Australia and New Zealand etc. Is it trading houses is the main cause for housing bubbles in some cities in some countries? Thanks.
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