In recent years, in Spain, as in many other countries, such as the United States, the investment practice of flipping real estate, residential real estate first of all, has become very popular. It is mostly popular in large and dynamic markets, as it is based on short-term speculation rather than long-term strategies.
In Spain, this practice has become popular mainly in large cities such as Madrid, Barcelona and Valencia, where there is a high demand for housing and actively growing, high prices on the market. For such investments, investors, as a rule, turn to real estate agencies, to professionals who actively monitor market movements and can determine with greater accuracy when to buy and when to sell. For example, in Madrid, We Get Inmobiliaria has become one of the most popular agencies in this area.
Flipping houses is the practice of investing in real estate, which involves buying real estate with the intention to renovate it to some extent in order to raise its value, and quickly sell at a higher price on the growth of the market. As a rule, investors are looking for real estate in need of reconstruction or repair, but not in disastrous condition and buy it at a fairly low price in comparison with the general market.
This practice can be very profitable for investors who know the real estate market, but it also involves high risks and requires a good orientation in the market in order to find a property suitable for flipping in time. As mentioned above, we need a specific property, sufficiently "supported" to be cheaper than the market, but not so much that the repair costs are greater than the potential profit. The purchase should be made when there is enough time to repair and enter the market with a new offer, when prices are rising.
The rise in popularity of flipping was not an accident or a quirk of a small number of investors that suddenly became popular. Real estate investments are popular primarily because housing is a primary necessity for people, there is always demand for it. The market has been growing for years, it was possible to confidently plan potential profits from resale. In addition, interest rates were historically low, so cheap borrowed money for the same renovation could be obtained quite easily.
One of the main advantages of flipping is the potential to generate significant profits in a short period of time (in comparison with other ways of investing in the real estate market). If the property is properly selected, successfully renovated and sold at the right time, it is quite often possible to get really impressive income. At the same time, flipping is a fairly flexible investment option, since it works on a fundamental level for short periods of time. Also, such a tool is often used as a way to diversify an investment portfolio.