Residential real estate is popular among investors and business-minded individuals for different reasons. Those who want predictable and higher returns choose to invest in real estate than in other industries. One of the popular and exciting practices in real estate today is flipping houses. It is famous among investors who want higher and faster returns without spending too much on capital.
What is Flipping
Flipping means buying an income-generating asset and reselling it as soon as possible for profit. While you can do this with any type of asset, flipping mostly refers to initial public offering and real estate. To flip a house is to redevelop a property. Those engaged in this activity buy a run-down house priced lower than other properties on the market. The buyers redevelop the property and then sell it at a higher price for profit. Others see flipping as a tactical strategy for real estate rather than long-term plan. Many people like flipping, as it gives them faster ROI and profit in the shortest time possible – provided they are good at redeveloping a home and finding a buyer for the newly improved property
How to Flip a House
Image courtesy of Woneffe, Flickr.
Recognizing a promising property, despite its current state, is one of the most important characteristics you should have when deciding to flip houses. Some properties only need minor repairs, while there are those that are beyond saving.
An ideal property for flipping is one that only needs cosmetic or minor repairs. Steer away from homes that need major repairs, as these are often money pits. A good property is also one that sits on a neighbourhood with perfectly maintained houses. Once you’ve turned this ugly duckling into a swan, many will be interested in buying the property, as it is in a neighbourhood with beautiful homes.
Cosmetic Repairs
Having a few sets of construction and repair skills can help you reduce your capital, flip the property and sell it faster. Of course, you can always hire the services of a tradesman to help you redevelop a home. Cosmetic repair ranges from polishing up the yard to simple paintjobs and installing different fixtures around the house.
Landscaping Makeovers
When flipping a home, don’t forget the exteriors. The front yard is going to be the first thing buyers will see. Make sure it is as impressive as the home interiors. Check for cracks on the driveway and walkway. Fill them up when necessary. Trim the bushes and trees. You may also like to plant some beautiful flowers on the front yard to give the exterior of the property and fresh and colourful look.
Exterior Facelifts
Go around the perimeter of the property and look for things that stick out like a sore thumb. You’d want to replace, repair or remove anything that is unsightly. Most rundown houses often need to have a fresh coat of paint. You should also paint threshold and doors. Check the windows, screens, storm doors, mailbox and light fixtures. Depending on the condition of the house, and the new look you want it to have, you may need to replace these things. Don’t forget to take a quick look at the gutters. Chances are, you may need to repair and repaint them too.
Interior Makeover
When redesigning, choose neutral colours for the interiors. Warm or cool tones are relaxing to the eyes. You can also go for bold colours, but only a few will appreciate an orange or red wall for the living room. Remember, you want to sell the house as soon as you can, this means trying to appeal to most homebuyers. Choosing between a carpet and wood flooring is tricky but you can never go wrong with a new one. Strip off that old wall-to-wall carpet and replace it with a new one or switch to a beautiful wood floor.
Bathroom and Kitchen Brush Ups
Storage is important, especially in the kitchen. If the house has a small kitchen, maximize the wall and install cabinets. Consider replacing out-of-date, and damaged countertops. Throwing in a new stainless steel sink and faucet is also a great addition to a beautiful kitchen. Most tradesmen in Australia can help you fix plumbing problems in the kitchen.
Give the bathroom a fresh look by installing a new toilet seat, vanity, shower, and faucet. Don’t forget to get rid of mildew and other stains.
Flipping a house is exciting. To help you succeed, contact a tradesman in Australia who can help you give an old house a makeover so you can earn better profit.
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