InvestingMarkets & Economyrick shargaSelect

Online auctions seem to attract more buy-and-hold investors

By January 22, 2015 One Comment

Investors who purchase homes in online auctions are more likely to hang onto them as rental properties than buyers purchasing homes at live auction events, according to a nationwide survey by Auction.com

Most investors bidding at live events apparently intend to flip homes they purchase than rent them, with survey respondents indicating a preference toward flipping over “hold and rent” in every state where Auction.com conducted live events.

Intent of investors surveyed by Auction.com

Investor_intent_by_state_auctionDOTcom

Source: Auction.com.

“It’s probably not a coincidence that some of the highest priced markets, such as California and the Northeast, are seeing more flipping activity, since higher priced homes are more difficult to rent out profitably,” Auction.com’s Rick Sharga said in a statement. “But it’s also very possible that part of the reason we’re seeing an increase in flipping is that in many of these markets there’s simply not enough new or existing home inventory to meet buyer demand.”

That shortage represents an opportunity for real estate investors who are able to buy, fix and flip properties quickly and efficiently, he said

Auction.com’s survey also showed that the more active investors were, the more likely they were to flip homes instead of holding on to them as income properties.

Investor_intent_by_no_purchases_auctionDOTcom

Source: Auction.com.

The post Online auctions seem to attract more buy-and-hold investors appeared first on WFG National Title Insurance Company.