Flipping houses can mean big profits, and if you’re passionate about property then this is a fantastic route to go down that could easily become your full time career. However it’s not always plain sailing, and without the right knowledge or with a run of bad luck- you could quite easily end up losing money instead of gaining it. Nothing is ever guaranteed when it comes to investing, and sometimes things out of our control (such as the crash of the market and recession) can mean losing our massively. However with the right knowledge and experience, you can minimise your risk and your property business can be very lucrative. Here are some things to consider.
Don’t Underestimate The Amount of Work
When you’re not sure exactly what you’re looking for, it’s easy to see a property and underestimate exactly how much work needs to be done on it. When you’ve renovated properties before, you’re all too aware of how things like asbestos, dodgy wiring, pests, rot and other issues can steal thousands from your budget- but they’re not always apparent at first glance. Always have a survey done before buying a property, at least then if any problems are found you can negotiate the price to reflect the work that needs doing.
Be Sure to Factor in All Costs
On major renovations, there will be hundreds of tasks that need doing, and it’s easy to overlook things even if they seem quite obvious. Consider things like travel to and from the project, solicitors fees, even skip hire. You can usually find cheaper bin hire if you look online, so try to be aware of everything you need to pay out.
Don’t Overlook The Area
When you find a great property and the price is right, it’s easy to want to snap it up. However it’s not just the house you’re investing in, you need to know what the area is like too. If you’re going to be renovating a house that’s perfect for a family, are there good schools and parks nearby? If it’s an apartment for a student or a working professional, what are the transport links like? Is there a noisy factory, railway or airport nearby which could put people off? Look into everything, and be prepared to walk away from purchasing the house if the rest of the area isn’t up to scratch.
Be Wary of Renovating To Your Own Tastes
One thing that lots of new property developers are guilty of, is renovating to their own tastes. Putting in a walk in wardrobe instead of an en-suite bathroom because it’s what they would prefer, or decorating in styles that they like. You need to know who your buyers are likely to be, and what it is they will be looking for. For example, families are going to probably want more than one bathroom and some outdoor space. Those buying flats are likely to want plenty of storage space and an apartment that feels as spacious as possible– so making an open plan layout and decorating in light colours can help. Do your research and be aware of what people want.