First off, flipping houses isn’t easy (otherwise everyone would be doing it). It’s important to be realistic with your expectations. You’re unlikely to triple your money on the house you bought for £60,000 if all the houses in that area generally sell around the £100,000 mark. Here are some important factors you’ll have to consider when getting into the business of flipping properties.
Finding the Right Property
Location. Location. Location. Yes. You knew this was coming. Remember, you aren’t buying this house because you want to live there. You’re doing it to make money. So get rid of any pre-conceived notions about what you think are “good” and “bad” places to live and start looking at the bigger picture of which areas are seen as up-and-coming.
Broadening Your Horizons
Don’t be put off from the idea altogether by simply look at the top end of the market and thinking that’s where all the money is. Look at potential homes that you could see selling in the middle to upper range. Making your property affordable to as many people as possible is the best way to ensure a quicker sale.
Consider What the People Want
Find out what kind of features local residents value. Sure, an ensuite and an extra bedroom are always nice, but sometimes more practical things can really make a property stand out. Things that you might initially take for granted, like a driveway on an otherwise busy road or a quiet neighbourhood, might be the quality that sets your place apart from the competition.
Setting a Clear Budget and Timeline
In many ways we’ve saved the most important point for last. Like the old adage says, time is money and, more often than not, a failed property investment is one that wasn’t planned out effectively. Make sure you’ve mapped out a realistic timeline for all your repairs and improvements before you begin. Unfortunately, even the most meticulous schedule will likely hit some rough spots, but as long as you can keep within the ballpark you’ll be off to a great start. Consider when each step of the renovations will be complete alongside the times when you or others won’t be available to work on the project because of other commitments.
While investing in big projects is always a risky business, there are more new tools available now than ever before, for example click here. Got any tips for first time buyers in the market? Leave your comments below.