property flipping possible in India

1. Is property flipping possible in India? In the US, there is a common practice of property flipping in which investors buy a house, renovate and upgrade it, and then sell it for a profit in less than a year. In India, this business is slowly gaining momentum but the tax rates and other implications are making it difficult for investors to build trust in the project.

2. What is property flipping? Property flipping is when an investor buys and sells a property quickly to make a profit. The idea is to buy houses below the market value and then sell them when the value increases. It is a common practice in western countries but is still finding its roots in India.

3. Modus operandi • In India, reselling a property is only possible after the Occupancy Certificate is issued. • So investors buy houses at the ‘pre-launch’ stage and sell them after completion of the project. • However, it is important to deal with RERA registered developers only.

4. Challenges of flipping properties? • In countries like the USA, property flipping is common and generally happens within a year. • In India however, high tax rates make it difficult for flipping properties. • Purchases at the pre-launch stage require upfront investment which is difficult for home buyers.

5. Is flipping properties profitable? Property flipping is profitable if done correctly. Investors should follow these tips to make a profit from flipping. • Stick to the 70% rule • Start from low • Understand the market • Conduct property inspection • Strategize sales • Choose the correct investment partner

6. With research, planning and caution, property flipping can be a profitable business. Seeking investment in the form of loans or private investors can also be fruitful.