Buying, fixing and reselling a house at a profit, or flipping a house, can be a lot of work, but it isn’t impossible. By purchasing the right house and making renovations, you can sell for much more than you paid for it in a short amount of time. Done the right way, a house flip can be a great investment.
Buy below market value or at the lower end
Buying below market value might be a little difficult in a seller’s market, but it’s not impossible if you know where to look. Some vendors are prepared to take less in order to achieve a fast sale so it can be worth putting in an offer anyway. Another option is to purchase a property at the lower end of the market which is also less risky. The lower market attracts a wider range of buyers who aren’t necessarily after the higher end, expensive luxuries like granite bench tops, making your renovation much more affordable too.
Renovate and renovate fast
There are three rooms or spaces in any home that, when renovated, can help increase the sale price – the kitchen, the bathroom and the overall property’s street appeal. Time is money and focusing on these three main spaces can help you turn around the property faster. Sticking to the structural layout of the rooms can also help you keep the renovating costs down. Being quick in renovating allows you to keep costs down and puts you less at risk of a market downturn which can dampen your profits.
Upstyle and DIY
You can save yourself a lot of money by upstyling a property, using furniture and accessories to style a property. Buyers inspecting the property and looking for inspiration on how they could use the space and furniture allows you to showcase what’s possible. DIY renovations are also going to save you a lot of money on hiring professionals. A simple coat of paint can liven up a house and make it look more modern, spacious and light.
Have the right support on standby
Having a team of reliable tradespeople you can call upon will help keep stress and costs down when it comes to renovating new houses. By keeping the same tradespeople in your team, you can work with them before purchasing a property to negotiate the costs and work involved in flipping the house. You can also negotiate access to the property before settlement to give your tradespeople time to start assessing and planning the work that will need to be done.
Be realistic about your numbers
Don’t inflate what you think you’re going to make on a property. Researching the market and the properties in the area will help you avoid overestimating how much you’ll get for your renovated property. By being realistic about how much you’ll get for the property at sale, you’ll avoid over spending on renovations. Understanding the market and what buyers are looking for will also help you stick to the trends and renovate the property to a specific buyer.
Although flipping a house requires a lot of careful planning, it’s not impossible to make a profit in a short amount of time.