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Hi All,

In light of my petition outcome against Sol Mijas Developers (presumably Majestic at the time) I am wondering how many purchasers bought on the promise of FLIPPING?

If any of you can also scan your individual contracts with the December 2005 completion date I would be grateful, and it would also assist you if I  won my case. 
This whole thing is causing me anxiety and stress. Anyone who wants to see what obnoxious people we are dealing with can see my solicitors letter to me if they contact me  (gill_malouf@yahoo.co.uk) 

Hi, sorry for being ignorant, but whats FLIPPING ?

Kiethf,

 Flipping is when you buy off-plan, paying only a deposit, and then sell on at a profit before the development is complete, thus also avoiding some of the taxes payable (I think) and also avoiding laying out the full cost of the property.

At the height of the property boom on the C de S some properties were flipped a number of times, each vendor taking a profit, before the developments were finally completed.

This only appears to work when there is a so called boom.

Hope this helps, though I'm sure some of the more knowledgeable members will have other ideas about flipping.

 

Hi all, We flipped an apartment 15 months ago and did make a profit that was okay, not the 50% gain all the agents said we would get, but substantially more than if we had placed the money elsewhere. We did see some developments where people where not allowed to flip before completion. This of course meant that the IVA had to be paid which in turn made the price of resale higher to get the same profit. To make it clearer, say you have paid 30% of the purchase price and are in possession of your Private Contract of Sale and the property purchase price is €200,000. This would mean that you have put down €60,000. You then manage to sell the property before completion for €250,000, this would mean a €50,000 gain. The name on the Private Contract of Sale has to be changed at the Notary and you get the money left after lawyers, Notary and agents have taken their expenses. This does have some implications for the new purchaser because the amount on the Escritura (deeds) of the property will still show the purchase price as €200,000, even though the new purchaser has paid €250,000 which would show a large capital gain if sold again.