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There are few financial investments in this world as sound as property. That’s why property flipping has become such a popular pastime among those with enough disposable income to get on that second ladder. It’s also becoming increasingly popular with DIY experts who can use their home improvement skills to fix up a home themselves and net a tidy profit in the long run. But what is property flipping and what does it entail?
What is property flipping?
If you’ve ever seen an episode of Home Under the Hammer then you can probably appreciate what property flipping generally entails – buying a property, adding home improvements and renovating it, then selling it for a profit. This can be done while living in the home or living out of the property. To flip a property properly, however, you have to be very wise while choosing the renovations, as they will likely be expensive but need to add enough value to make a profit.
In short, you need to ensure that the value of the property exceeds the cost of your renovation work and finding that line can be tricky for first time house flippers. That’s why it’s key to understand the 5 most common home renovations for maximum profit.
1. Conversions
Conversions are a popular renovation for house flips. This involves taking a previously uninhabited space and converting it into a more usable room. Common options include converting a loft into a bedroom or converting a garage into more living space for a relative or independent teenager.
2. Gardening
You can add a lot of value to a property by using simple gardening and landscaping tips. Replace dilapidated or wonky fence panels to increase the property’s privacy, for example, or create an outdoor living space rather than just a garden lawn by adding garden furniture and more floral touches.
3. Extensions
Extensions are one of the most expensive renovations but when done properly they can add substantial value to a home. The best way to achieve this is by adding another bedroom to the property, as more bedrooms always mean more value. Conservatories are another popular choice. Either way, you should always ensure you have planning permission before moving ahead with any extensions.
4. Redecorating
The décor of a property goes a long way when it comes to its sale price. Old carpets and wallpaper will signify that the buyer will have a lot of work to do while a blank slate might put people off as they struggle to visualize what they want. Keep it simple and flexible and keep it light.
- Cleaning
The finishing touch on any home flip – you want to ensure the property is spotless before the estate agents pop in to make their assessments on the price. It might seem like a minor thing but it’s also a very cheap thing to clean a home for sale. Just spend a couple of days making everything sparkle and you might be able to squeeze another few thousand onto the asking price.