NEW ZEALAND NAMED AS THE PROPERTY FLIPPING HOTSPOT OF THE WORLD

adsense

PHOTO: Property flipping

New Zealand is home to the most property flipping enthusiasts in the world, according to new research.

The country ranks first in a list of 30 countries where people are searching the most for opportunities to buy, renovate and sell homes, in a new Property Flipping Index, compiled by online mortgage broker Mojo Mortgages.

With the average house price in the country closing in on NZ$1 million, amateur flippers in Auckland, Christchurch, Wellington and further afield are spotting a golden opportunity to get a slice of the action and purchase homes with the intent to sell on for a profit.

This ranking follows Jacinda Adern announcing plans to reopen the border to international tourists from April, suggesting that some Kiwis may also be looking for properties to turn into an Airbnb or other accommodation. This is despite the bright-line test, brought in by the government to deter house flipping by imposing an income tax on profit from a property sale.

Sexy real estate agents – FUN Instagram Page | sexy.agents

Mojo Mortgages looked at the number of Google searches for key terms, such as ‘property flipping’, ‘cost to flip a house’ and ‘renovate a house’, to find out which country’s residents are most interested in becoming home flippers, per capita.

The 10 countries most interested in property flipping are:

1 – New Zealand

2 – United Kingdom

3 – Australia

4 – Poland

5 – United States of America

6 – Denmark

7 – Ireland

8 – Norway

9 – Singapore

10 – Canada

The United Kingdom ranked second in the index, with the country catching the auction bug with an all-time high interest in home auctions. Property auctions often include a portfolio of more affordable homes, however they can be in need of a lot of repairs, making the properties an affordable purchase. Yet, Brits can face renovation costs of thousands to make the home appealing. Australia came in third, following a strong annual growth in house prices.

At the other end of the spectrum, India and Japan’s residents are least interested in property flipping. This follows India’s house pricing slump in 2021, while Japan’s declining population has already seen one in every ten homes abandoned in Tokyo.

The 10 countries least interested in property flipping are:

1 – Japan

2 – India

3 – South Korea

4 – Mexico

5 – Colombia

6 – South Africa

7 – Italy

8 – United Arab Emirates

9 – France

10 – Switzerland

Richard Hayes, CEO and co-founder at Mojo Mortgages said:

“Despite the obvious benefits of property flipping as a business venture, it’s not a universally popular act. The cost of living is rising exponentially in so many countries, and for some, the option to purchase a house which you don’t intend to live in isn’t justifiable.

Profile your business – FOR 12 MONTHS | $999 plus GST

“In New Zealand, as employment grows and tourism reopens, it looks like Kiwis are looking forward to jumping on the house-price boom to make a profit of potentially hundreds of thousands of dollars.

“However in other countries the opportunity is being left untapped, with a lack of affordable housing and low demand for homes making the process look unappealing. Enabling people to borrow more might help them to get on the property ladder with a second home to renovate, but it will depend on their circumstances and different affordability rates.”

Readers can see the full research here: https://mojomortgages.com/mortgage-news/properties-with-potential-the-countries-which-cant-get-enough-of-house-flipping