With the housing crisis in the U.S. and concern here in Canada, flipping as an investment strategy fell by the way. But strong price growth starting in 2014 is reintroducing a whole new generation of investors to that way of making money from real estate.
Leading the charge are two of the professional dancers from the television series Dancing with the Stars
who are premiering a new show on HGTV called Mark and Derek’s Excellent Flip
. The show indicates that this method of property investment is increasingly popular with their risk-tolerant generation.
But it's not just the millennial generation that's expected to tune into the show, where Derek Hough and Mark Ballas team up to buy an outdated California home and flip it in just four weeks. It follows their progress from demolition to design, construction and decorating, as they join the ultra-competitive Los Angeles real estate market.
That gamble may be fine for Hollywood heartthrobs working LA’s real estate market, but what about up here in Canada?
Investors who are weighing the pros and cons of a fix-and-flip investment versus a buy-and-hold strategy should consider the risks of the short-term game and the merits of long-term investing, say experts.
“Fix and flip is playing poker in the real estate arena,” said Daniel St. Jean, an investor and co-owner of Safe and Sound Real Estate Investment Group.
“We are talking to a lot of people at networking events, especially the younger generation, who don’t understand delayed gratification. In real estate, they want the money now, but they need to think more long term.”
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Investment Hot Spots:
Youngs Point, Petite-Rivière-de-l'Ile, Houghton Centre, Clam Point, Strathcona County
Two of TV's hottest celebs are bringing flipping back - centrestage!