Flip a house without flipping out
Category General News
You've seen the TV shows. A cute couple buys a property at a steal, give it a makeover and sell it for a cool profit. While Flipping Vegas, Flip or Flop and Fixer Upper make it look glamorous and easy, house flipping is a real challenge. The rewards make it well worth it, though. If you're keen to make a killing in real estate, read on.
What is house flipping?
It's when you buy a home with the intention of reselling it at a higher asking price. These homes can be distressed properties, on auction or even fixer-uppers in up-and-coming areas. With a good eye for a deal and the know-how, you could make a pretty penny.
How to flip houses
Be ready to flip: Flipping a house is no picnic. You'll need to be well prepared to take on this journey. Having time to do renovations and market the property is vital. There can be lots of unforeseen costs involved so you'll also need quick access to funds when the need arises.
Do your research: You'll need to take time to think strategically. Pinpoint desirable areas, understand the local real estate market and put your finances in order. When you find the right house, you'll want to jump on any renovations so you can sell quickly.
Put your team together: It takes a village to raise a child and flip a house. Before you even find your flip, you should have a go-to list of plumbers, handymen, attorneys, accountants, landscapers and decorators.
Plan your exit strategy: Sometimes things just don't work out. The economy turns for the worse, the market shifts and trends change. If you can't ride out the storm, you need a plan. Consider renting out the property. It can provide a passive income until you're able to sell your flip.
Choose your house wisely: Buy a house valued above its asking price. It should be located in an area filled with amenities that are attractive to buyers. Look out for schools, shopping centres and recreational spaces. Safety is a concern for all buyers so do take a look at the crime statistics in the area.
Inspect the property: Finding your first flip opportunity is exciting. But, you should keep a level head. Curb an impulse spend by doing an inspection. By roping in experts, you can learn the maximum value of the property, the repairs required and estimated time it would take to sell.
Make smart renovations: If your flip has a good foundation with no plumbing, mould or electrical issues, invest in affordable improvements. Focus on aspects that strike buyers immediately. You should paint the walls, redo ugly carpeting, add lightning and spruce up the garden. Stick to your budget so you don't get carried away.
Price your property right: It's easy to get greedy after the work you've put in. Resist the urge to overprice as you will turn off buyers. The delay can mark your property with a red flag and create property upkeep costs.
Consult a home loan expert: Congrats on finding the perfect flip. If you still need to secure financing for your house and renovations, reach out to a reputed home loan provider. ooba, for example, lets you 'shop around' for the best deal on your home loan and provide you with quotes to compare.
Where to look for houses to flip
By studying property reports, you can find 'hot' areas. According to an FNB survey this year, Akasia property values jumped by almost 7%. Its market is thriving and homes here would make a great investment. Check our listings for potential flips.
You can also team up with a professional property expert with local market insight. Our estate agents have flipping experience and can price your home competitively when you're ready to sell.
Author: Century 21 South Africa
