Investing in Virtual Real Estate

The virtual real estate website Flippa.com reported a double record last month, passing $40 million of website sales for the life of the marketplace. This is an important sales record of the largest global marketplace for buying and selling websites, but in the same time they sold over $1 million worth of web property in one single week, the 3rd of August.

It was a huge success which proofs that may represent a profitable investment in recession times.

While most land owners sold their land very cheap because they had no other vision, excepting farming, there are developers building upon this inexpensive lands and turning some wheat pastures into multi million dollar buildings.

In the same way, Flippa is doing a good job in the virtual real estate market, bringing forward the true value of domain property, like in That particular week brought a total of 371 website sales, most of them in public auctions. This represents a lot of virtual properties and generates many happy buyers and sellers.

The average price of websites sold in the recording week was $2,812, but the most actions was focused in lower priced properties.

In the real estate market less than 1% of the properties succeed in the selling process after 6 months, but on Flippa they sold 54% of the listing for the last 3 months and this number alone may reveal an important conclusion.

During the actual downturn in the economy, with so many people loosing their jobs and facing many incertitudes, some of them are looking for other options and income sources. The most important reasons for investing in virtual real estate are represented by the lower level of costs, the shorter term of income returns and the flexibility of this activity.

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