Flipping

Flipping is when you make an offer on a property and then either look to secure a new buyer before you close on the deal, pocketing the difference between your offer and theirs, or you wait for it to rise in value, then sell on.

The secret lies in knowing which properties lend themselves to flipping, and using the right contracts. The idea of flipping might be attractive, but in the real world it’s difficult and can be risky.

If you don’t find a buyer in time, you may end up holding the property, which could tie up cash and lead to capital gains taxes if you choose a short-term resale. If you have multiple deals in progress, you could get really stuck.

MoneyWeek magazine

Latest issue:

Magazine cover
The hunt for water

The most valuable commodity

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Robert Shiller: why one of the world's smartest economists is worried about the bond market

Merryn Somerset Webb talks to Yale professor and Nobel Prize winner Robert Shiller about how the power of 'stories' drives the global economy and creates financial bubbles.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


26 February 1995: 'Rogue trader' Nick Leeson breaks Barings Bank

Barings Bank, one of the world's most venerable banks, was brought to its knees by the original 'rogue trader', Nick Leeson, on this day in 1995.