Are You A Property Flipper Or Keeper?
Everybody wants to get into the property game – either as a flipper or a keeper. If you not familiar with the terms, a “flipper” is a property investor who buys properties for the sole purpose of turning a quick resale profit, usually within a year. But a “keeper” is a buyer who holds the property for at least a year.
The comparison table below outlines the differences between the two:
However, there are also those who have a foot in both camps by employing both strategies for different types of property – depending on their investment personality, investment goals and/or opportunities presented by the existing market.
The determination of what type of property buyer you are depends on your objectives. If you veer more towards property keeper, with a good strategy in place, it is possible that rental income can be the highest monthly wage you will ever earn.
However, when a property flipper stumbles onto a good deal, it can be the fastest way to recover their investment and earn a profit – allowing them to use that cash to buy more properties.
The bottom line is, set your objectives (steady monthly income or a one-time quick profit) and decide on your strategy before choosing the right type of properties.
So, which type of property buyer are you – keeper or flipper?