Leuw, Arjan de (2020) Investment behaviour in the housing market. Master thesis.
|
Text
MT Arjan de Leuw.pdf Download (1MB) | Preview |
Abstract
Residential property flipping is defined as an investment strategy aiming to resell housing within a short timeframe. Investors flipping properties play different economic roles in housing markets. The main focus of this study is to investigate the welfare implications of flippers in the Dutch housing market and to advise policy measures accordingly. In this paper, a comparison is presented between flipped and non-flipped properties in the Netherlands between 1993 and 2019. Using data from the Dutch Land Registry Office, we employ a hedonic and repeat sales model to estimate the returns of flipped properties, the impact of increasing experience in flipping properties on returns and spatial and temporal dimensions of flipping. The results reveal that returns of flipping properties are 7.8% higher relative to market returns and increase with urban density up to 10.7% in the four largest municipalities. Furthermore, the returns of flipped properties increase from 7.3% if an individual flipped zero to one property to 14.4% if the subject flipped two to four properties and 12.4% if the subject has flipped five or more properties relative to individuals who do not engage in flipping. Over time, the returns of flipped properties are positively related to overheating of the market, with highest returns measured in 2009 and 2018. Overall, we cannot exclude flippers acting as intermediaries, but flippers do show signs of speculative investment behaviour.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Liu, X. |
| Date Deposited: | 04 Mar 2021 16:38 |
| Last Modified: | 04 Mar 2021 16:38 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/3448 |
Actions (login required)
 |
View Item |