Things to Consider When You're Flipping Houses
There’s more to flipping houses than simply buying cheap, renovating and then selling for a profit. Property investment can be unpredictable, in recent years especially we’ve seen how volatile the market can be due to living through global events like the pandemic, Brexit and the Russia/ Ukraine conflict.
In many ways, purchasing property is a safe bet in terms of investing since even if you’re struggling to sell, you always have the option to rent it out. Companies like The Property Edge make this quick and easy so its a great fallback option if the sales market is going through an unfavourable period. But that doesnt mean it’s easy or for everyone, you never quite know what you’re going to uncover on each project that you take and how well the properties you flip are going to do. So here are some things to bear in mind.
The Area
It’s easy to be charmed by a great property, but don’t overlook the area. If the area or street is run down this will affect the price you can get for the property regardless of how good of a standard you do it to. Consider the area for the property you’re renovating too. For example, if it will be a family home, are there schools, parks and shops nearby? If it will be an apartment for a young professional is there good nightlife and transport links nearby? If you want to sell or rent it as a student house share, is there good links to the college or university?
The Outdoor Space
If you’re renovating a family home especially, this is something to be aware of. Most families will want a garden or at least some suitable outdoor space for children and pets. If you choose to renovate a house without this, it could seriously impact the amount of money you’re able to fetch for it, and limit the people that will be interested in buying it.
The Amount of Work That Needs To Be Done
Not every house flip will be a simple cosmetic job- more might need to be done than that. Consider if you’ll need to relocate kitchens or bathrooms (in many older homes, the bathroom might still be downstairs). You might need to rejig the entire layout so that it fits modern lifestyles. Go into every project with your eyes open and do your research so you’re aware of the work that needs to be done and what will have to be spent.
The Finishing Touches
People searching for a place to live need to be able to picture themselves in the property. So adding a few finishing touches or even staging the home with furniture enables them to see how the space can be utilised. Keep it simple but things like light fittings, curtains, a couple of plants and rug will give a homely feel to the rooms that can help you to demand a higher asking price since you’re showing that it’s move-in ready.
