Flipping
Flipping is when you make an offer on a property and then either look to secure a new buyer at a higher price before you close on the deal, or wait for it to rise in value, then sell on.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
AI will maintain Moody’s market lead
Opinion Veteran data provider Moody's has adapted well to the modern world, and is one of Warren Buffett’s longest-held investments
By Stephen Connolly Published
-
Larger homes drive house price growth – Halifax
The average cost of a house in Britain is more than £10,000 higher than last year, according to the latest house price index
By Daniel Hilton Published