Flipping Out

The term flipping refers to an investor buying and selling a condo before it's even built.  The practice of flipping, also referred to as assignment sales, is a twist on the regular sales method where the physical property is purchased at the time of sale.  In an assignment sale the seller (assignor) transfers the contractual rights to the condo to the buyer (assignee) before the building is completed.

 

New developments in hot real estate markets attract flippers who can make money purchasing condos in buildings before any construction has begun.  However, as with most investments there are risks involved.  Flippers can lose money if property prices do not increases by the time the building is completed or if the building doesn't sell out and the flipper has to match regular pre-sale prices.

 

As demand continues to outstrip demand in Vancouver's real estate market making an assignment purchase can be an effective option to get hot property.  With assignment sales on the rise, Nicola Way, has created AssignmentsCanada.ca to help connect potential buyers assignees.  If you are considering purchasing an assignment property or have any questions don't hesitate to call me.  

 

(All cited figures and quotes are from The Vancouver Sun, July 15)