It’s cheaper to get started
It doesn’t matter how hard you search on rightmove.co.uk – you won’t find a house for £5. The average house price in the UK as of of June 2017 is £223,257 (Data from gov.uk). This makes domain flipping a much more attractive investment for a part time or hobby investor.
No maintenance, repair fees or tennants
You’ll never have to fix a leaky roof on a domain name or pay for landlord insurance. A domain is a fixed entity, the value is from it’s potential rather than a physical asset. There are no maintenance fees apart from the renewal fees every 1/2/5 years etc.
Return on investment can be greater
You buy a house at auction for £50,000 and spend £20,000 on fixing it up.. then sell it for £120,000. That’s a solid profit of £40,000 to £50,000 depending on fees and taxes. Compare this to buying a domain for £5 and then flipping it in a few days for £600,000. That’s a profit of £599,995 depending on taxes and fees.
Less risk
The cost involved in domaining is no where near as much as property investment. If you buy a domain that doesn’t sell then the most you’ve lost out on is £5 a year in registration fees. If you invest in property and it doesn’t sell or meet your expected value then you could lose £100,000s.
No mortgage
You don’t need a mortgage to buy a domain, but you may need one to buy a property. Mortgage applications can be a lengthy and complicated processes. You don’t need a mortgage or a salary to start flipping domains. Just a debit card.
