How To Become An Experienced House Flipper
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House flipping is where you purchase a property, not to use, but to sell, often quite quickly, for a profit. Usually house flippers tend to buy a run-down or fixer-upper, upgrade it and then sell it for a good return on investment.
To make house flipping a profitable venture, you have to be sure to choose the right property and that you are making the right investment. Here are some tips on how to achieve this...
Compile a Budget
Determine how much you are prepared to invest. If you are considering obtaining a home loan, calculate what your affordability is and what the bond and transfer costs and bond repayments will be by using: https://www.homesofdistinction.co.za/calculators/. Once you have determined your budget, stick to it.
Location, location, location
Simply put, location is critical in real estate. Aim to buy low and sell high. If you want a good return on your investment then rather invest in the worst house in a good area than a good house in a not-so-good or bad area. Research the levels of crime, proposed developments, traffic, your daily travel distance, proximity to public transport, schools, shopping centres and medical facilities in your selected area. Do due diligence and explore the market and track the property sales prices for the last 5 or 6 months.
Remember, this is a business investment so what's important is the location and price, not how much you like the property.
Effective business planning
Once you have selected your property, and before making an investment, determine what is the realistic selling price you might get in the current market. Then plan what renovations this property needs, how much these will cost, whether these are in demand and what profit this will generate when you are ready to sell before making an investment. Knowing your target market will be crucial in determining what enhancements will be sufficient without involving too much spend or overcapitalising for a good return on profit. Consult an area expert who will offer reliable and professional advice and assistance with your planning at: https://www.homesofdistinction.co.za/contact/.
Establish what renovations are needed
Before purchasing the property, get accurate costs and reliable renovation advice from a competent team of builders, electricians, plumbers, landscapers etc. that you plan to use for your renovations. Adjust your budget with these costs accordingly as they may alter your affordability and predetermined end price significantly.
Speak to a Reputable Real Estate Agent
Contact a reputable real estate agent, the area specialist, for a good valuation and who will have all the pertinent details you will need in ensuring this is a viable investment.
Kitchens, Bathrooms & Bedrooms
The best way to add value to a property is to fix up the kitchen and open up a few spaces. Open-plan living is the latest trend especially where the kitchen, lounge and dining room are combined so that the whole family can be together, conversing and/or playing, while meals are being prepared. Adding a bedroom adds saleable value. Smarten up the bathroom with new taps or add attractive shelving or a vanity for extra storage. Choose neutral colours to soften the spaces which are more appealing to prospective buyers than brighter or darker shades.
Always use Professionals
Accountant
Don't forget about Capital Gains Tax! Use the services of an accountant for advice on how this may be applied when you sell this property.
Real Estate Agent
For invaluable information and assistance and much time-saving, consult a professional real estate agent who specialises in the area. A reliable area specialist will be an indispensable resource in guiding you throughout this property investment venture with knowledge about the area, the current market, prices, the demand and growth in the area, your proposed upgrades, your profit expectations and even renovator referrals. Be smart, save yourself time and lots of anxiety and doubt and contact one of our experienced, specialist real estate agents at: https://www.homesofdistinction.co.za/contact/.
Be a wise house flipper and do thorough and proper due diligence. Make the right investment, don't overcapitalise and you will be able to grow your wealth successfully!
To contact us, follow the link: https://www.homesofdistinction.co.za/
To contact one of our Real Estate Agents, follow the link: https://www.homesofdistinction.co.za/agents/
Author: LV Digital
