Property Flipping in UAE and Its Consequences
Property flipping occurs when an investor purchase some property and immediately sell it to another buyer for profits. Technically the property owner just flips it over to the next buyer and secures profits. Fix and flip procedure is the same except that the investor will go through some basic construction or maintenance work, just to make it sellable or improve its price (adding no value).
Property flipping is also used for mortgage fraud (often with the help of property appraiser and buyer), which is illegal and unethical. Property flipping is a practice commonly observed in real estate investors at rapidly growing real estate markets. Where investors are keen to gain the maximum profits with the growth, this type of speculation based property flipping is bound to happen in thriving markets but things can get out of control if it goes unchecked for a long time. Abnormal hikes in real estate prices and increase in cost of living are associated with flipping.