Flip - flops - the latest property ‘fashion’ victims

‘Flips’ were all the rage - now they’re decidedly ‘flops’

Not so long ago, many would be landlords were tempted by the apparent gains they could achieve by being persuaded to dip their toes into the investment market and buy flats ‘off-plan’ for a discount and then re-sell for a good profit.  The alternative was to rent out - thereby getting a monthly income, plus a capital increase once they came to sell on.

The borrowers who wished to ‘flip’ the property (that is, to sell at a profit before completion) are now facing grave consequences from the market downturn and an oversupply of brand new apartments in areas such as Birmingham and Leeds, plus a lack of expertise in property matters.  Was there also too much trust in believing what the property experts have been selling them - a dream of wealth beyond compare, ignoring the hidden dangers.

The outcome for our novice borrowers/would-be landlords is that they are now experiencing difficulties meeting the mortgage, and not finding tenants.

Were you tempted to join in the landlord bandwagon, with promises of riches beyond compare? Tell us your story.