Property flip

Property flip – this term could have two different meanings:

– Property flip could be a strategy to buy real estates and to sell them for a higher price – usually due to improvements and repairs done in it.

– the term could also mean a fraudulent practice by agents and developers to increase the price of a property way over its actual market value. So when a credit survey is performed by the bank in order to release a mortgage loan, there occurs a huge difference between the price surveyed by the land expert, and the requested price by the developer or the agent. It results to impossibility of the buyer to get a loan for the asked percentage of the price. In developing countries the property flip until 2008 has lead to many abandoned and non-completed complexes, simply because there has been nobody to pay the asked huge price of thousands Euro per sq. meter, where the actual building costs were multiple times less.

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