If you’re thinking about flipping your home, we reveal some game-changing tips from property experts which could see you turn a profit quicker than you think!
Despite the UK being gripped in a pandemic, this hasn’t stopped savvy Brits from turning a profit on their home by ‘house flipping’.
But what does ‘house flipping’ mean?
A ‘flipped’ home means it has been bought, renovated and sold again within a short period of time.
And house flipping in the UK has now reached a 12-year high. Using Land Registry data, estate agent Hamptons International found that the proportion of homes flipped is now at its highest level since 2008, the year of the financial crash.
Hamptons says in 2020 so far, 2.5 per cent of homes sold have been flipped within 12 months. They expect this figure to stand at 23,000 by the end of the year.
How can I flip my home?
Despite the huge rise in home flipping, to make it worth your while there are some factors that need to be carefully considered.
To give sellers a bit more help, MyJobQuote.co.uk gathered tips with the help of property experts to reveal how to flip a house quickly and profitably.
And one property expert, private equity entrepreneur Abdul Shakur, believes one technique could have you turning a profit extremely quickly.
He calls it the BRR technique – Buying, Refurbishing, Refinancing. Shakur says BRR investing is finding a property you believe you can add value to with a minor refurbishment.
Instead of buying it through a full mortgage, the buyer applies for a short-term loan known as a ‘bridging loan’. Which means they may only need to pay 25 per cent of the value – the rest is paid by the loan.
The buyer then renovates as they wish, and if done to an acceptable standard, when selling they can refinance the property. Or sell it to someone else for a much bigger profit.
Here are some other great tips experts reveal as key to making a profit from property flipping.
4 top tips for ‘Flipping’ your home
1. Understand your demographic
Especially in the current climate, buyers’ demands are rarely the same. Before buying the property you wish to flip, think about who you want to sell to and what the property could offer a buyer once improved.
What’s just as important when identifying a target audience is conducting market research to work out what competition there is in the local area. Nailing this allows you to make faster and more cost-effective decisions when renovating.
2. Say hello to home staging
‘Many people struggle to separate home staging from interior design’ says Elaine Penhaul, owner of home staging company Lemon and Lime Interiors. Although many tend to neglect the former, ‘return on investment is undeniable’ as on average home staged properties sell for a higher price and four times faster. Research and stage a property based on what will attract the widest target audience, and you’re likely to strike gold!
3. Declutter and decorate
Decluttering and decorating are among the most important stages in the flipping process. If you’re wanting to make a quick sale, chances are the buyer is also wanting to make a quick purchase.
Whilst most buyers will see past clutter and won’t base their decisions on it, it can drastically slow down the process. Providing them with reasons not to buy. Removing unsavoury items, smells and redecorating (even if slightly) will revitalise the property. Highlighting the bits they should focus on and detract from what they shouldn’t.
4. Promote the property’s best bits
Just like applying for a job, highlighting a property’s best bits will make it more likely to sell. Whether you were problem-free when renovating or riddled with issues you didn’t realise were there, focus on what’s good about the property and remind the potential buyer how they can enjoy it once moved in.
Emphasising the best bits when marketing the property online can also go a long way, as online property viewings are only increasing. It’s important to make all rooms and features look beautiful and enticing, so investing in or arranging professional photographs to be taken will significantly contribute to your success.
Make your house flipping a success with these easy steps.