Are Flip Sales Still Possible and If So How

However for ease of use, lets talk about Flipping New Build property with a discount.
The three most important factors to consider in Buying to Sell are the Location, The Market you will sell to and the Price.
Maybe the most important factor to look at is, are there still genuine discounts around?
If you walk into a showroom for a developer and manage to knock 15% off of the list price, what makes you so sure that you could then sell on at a 15% profit? After all, if the developer does that particular deal for you, could you prospective purchaser not simply walk into that same showroom and get that same deal?

Say you buy the last plot on that development, ok now your not in competition with the developer but you are with every other development in the area… and anyone else that has the same idea as you!
A similar investor could have purchased 10 of the same apartments the month before and got a 20% discount; he could sell at 5% below you and still make a 15% profit!
As you can see Buy to Sell does not seem to be the simplest way of making money!
So how do you purchase a Buy to Sell property bmv (below market value)? Why would the developer sell for that?
Well you’re definitely in a better position if you

1. Already have finance arranged


2. Are a cash buyer


3. Can buy multiple units.

If you are in any of these positions then you are in with a shout. Either because units the developer has pre sold have fallen through and you can complete quickly or because the developer needs to sell multiple units in a hurry!
If you are fortunate enough to be in one of these positions then we can go back to what constitutes a “good deal”, the location, the market and the price are all important.
Firstly the Location, most important is that the average Ã???/per sq.ft. for comparables in the area is noticeably under what you are paying, also important is to speak to agents in the area and ask how quickly the comparable property is selling.

Secondly is the target market, this is simply buying property in an area that lends itself to that particular demographic.
If the area is full of students, buying a brand new 4 bed townhouse is probably not the best idea; the market is simply not there for it.
Lastly the price, we have touched on this earlier and in the last 2 points, this really is all important.
Due diligence is a must, speak to agents in the area and look out for how quickly the developer agrees to the discount, if you offer 15% under and he virtually bites your hand off this should ring alarm bells. Look at when developers year ends are, contact them about 1-2 months before, this will be when they start to do deals.
If the comparables show the discounted price is decent, the market is not saturated and the developer has not sold half of his quota at that discount then its definitely worth considering!
In conclusion, the Buy to Sell market here is probably the hardest it has been in 15 years and it is definitely a lot more difficult to pick up flip sales, however this kind of market always brings to the top some developers that panic sell, they have a couple of quiet weeks and suddenly worry about their quarterly quotas, for the more switched on investor bargains are still to be had.