Ok… Following on from the Townhouse VS Terraced House…
I think we need to start talking about this concept of “flipper” in the Irish context…
Internationally and you can even talk to Casey Serin about this, a flipper is someone who tries (at the very least) to add value to a property by doing something to it. An extension, a refit, a bit more than a lick of paint generally…
To my mind, certain folks in Ireland are using the term flipper interchangeably with what is most commonly known as the specuvestor, the pure capital appreciation merchant.
The commonality might be that neither has any particular interest in renting the property, although they might, but the first is an inherently more socially useful type.
I think it’s unfair to use the term “flipper” when you are talking about someone who has done nothing to a property… It gives “flippers” a bad name and they don’t really deserve it…
I thought a flipper was someone who bought, for example off the plans (possibly with 100% loans), and sold very quickly thereafter, maybe before the development was even built, thereby realising a profit without having to put their own money or labour into the endeavour. Thats just the image I have in my head. Although its possible that the first time I heard of the term was when I started reading the PIN. Im not sure.
“Specuvestor” is our own term of derision, is it not? Denoting that all these “canny” and “shrewd” “investors” are in reality simply gamblers speculating on the value of an asset increasing forever and ever amen.
So speculators/specuvestors intended to hold the property over a period of 1-5 years (often leaving it empty) then take the capital profit
“Flippers” to my mind are people who bought off plans with the full intention of churning to property along to the next greater fool within months of it being completed.
Kind of like the difference between day traders and traders who hold a stock for significant periods for the likely capital gain but who don’t care about the dividend.
Fixer-Uppers are the socially-useful people who seek out bargains in poor repair, fix them up to a useful habitable state, and sell them on hoping to make a reasonable return on their hard work and investment. And nothing at all wrong with that. Typically they don’t intend to be landlords themselves.
Professional Landlords are akin to the Warren Buffets of the property world - they seek strong underlying value, positive cashflow, good location, decent yield - and maintain their units to defend competitive advantage and good long-term returns. They also tend not to care too much about the vagaries of the market price.
Bad Landlords are bottom-feeding shyster cowboy scum and deserve everything they get.
I too would term a flipper to be somebody who buys off plans and sells when completed. Or who buys near proposed new infastructure and sells when the property becomes more desirable because of the new rail link/shopping centre.
I’d see a specuvestor as the type of person who buys a number of properties releasing the accumulated equity on the first to buy the 2nd, and so on. They are to be found smuggly telling anyone they can peg down long enough that they are “worth” 6 million, leaving out that they have mortgages totalling 5.8million. They may leave the properties empty or let them with negative yield, but they don’t mind as in 20 years time they will be worth 100 million.