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INVESTIGATION OF PROPERTY FLIPPING SCENARIOS AS AN INVESTMENT METHOD ON PROPERTY MARKETS
Abstract
Property is a good of specific features that can satisfy many types of needs. Even though properties in many situations are identified with fulfilling living requirements (for example residential apartments) they can also be subject to the capital investment and the source of its obtainment. Investing in real estate is a proven way of income multiply. Buying an apartment for investment purposes is becoming a more and more popular form of investing capital, as rent income is more profitable nowadays than deposits and savings accounts in banks. An investment in real estate may be of a long-term nature - when an investor decides to buy it for renting or short-term, when it assumes quick resale in advance - the so-called "property fllip". The aim of the paper was to investigate the main problems and sources of risk that property buyers may encounter in their investments. The author of the paper moreover identified different property flipping scenarios that were noticed on the local property market. Case study method used in the analysis not only enabled risk identification but also let estimate profit of that kind of investment
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