If you have a knack for renovating, why not make it your job and start flipping houses for profit? It sounds like a very straightforward affair, but it’s never that easy to earn money. Knowing which color is trendy and what the ‘it’ material is for floors is just not enough! Here are the most important things to keep an eye on when renovating homes for profit.
Stick to your budget
Set a total budget you can invest in the property you’re about to flip and stick to it. Make sure your budget includes the initial price of the house, all the planned renovations and contingency money for unforeseen events. It’s always great to have some extra money at hand to cover price rises, supplier and contractor changes and other issues. Once you have a number, make sure to stick to it because renovations can be quite addictive and it’s easy to get carried away.
Hire good people
Sure, you can always conduct some work yourself, but it’s never advised to tackle projects you don’t know anything about. For instance, you might save a few bucks by repainting the property yourself, but if you do a shabby job, it will ruin the aesthetics of the house and cost you money. You can probably plant a few flowers yourself, but an expert gardener will create a little masterpiece in the backyard that will definitely affect the price of your property.
Find a good location
When choosing the property to flip for some serious profit, pick the least attractive house in the most attractive neighborhood and street that fits your budget. This move will give you the best opportunity to earn great profits if you do things the right way. Why? Well, if the house is looking bad, it will reflect on its price. However, the location is giving that cheap and shabby property some untapped potential you can turn to profit with your renovations. However, picking the location can be quite tricky, especially if you want a property in a big and expensive city like Sydney (it has one of the most unaffordable housing in the world). So, if you don’t know a lot about the city, the areas or the neighborhoods, it’s best to hire a professional to provide you with some great advice. An expert property buyers’ agent in Sydney knows the best locations, the current rates and all the tricks in the book real estate agents use to get you to pay more. So, make sure to have someone on your side and you’ll surely pick the right property that will bring the best profits.
Take care of the essentials
Once you start renovating, it can be quite tempting to tackle things like the kitchen, the bathroom and decoration right away. However, when the valuer comes to inspect your property, they will completely disregard those aesthetic improvements and look at the house as a whole. So, make sure the house is dry, warm, stable, safe and secure before you engage in remodeling. Invest in roofing, stabilization works and good wiring. If you discover your property needs rewiring once you’ve repainted the place, you’ll lose a lot of money, time and nerve.
Invest in central heating
Sure, investing in bathroom renovations and kitchen improvements is a great way to raise the value of your property. However, don’t dare neglect the heating! Adding or updating the central heating in your house will always pay off and reap more profit than it costs. Buyers, real estate agents and mortgage valuers find it absolutely essential.
Consider energy-efficient improvements
Another thing you can do to your property that is very cost-effective is energy-efficiency. Start by sealing doors and windows to prevent energy loss, replacing old windows with double-glazed ones and adding proper insulation for your climate. You can also invest in energy-efficient appliances and water-efficient fixtures. Look for Energy Star ratings on the appliances and make sure to install low-flow toilets, faucets and showerheads in your bathrooms. These investments will not cost you a lot, but they will definitely attract younger and more eco-conscious buyers. Also, some countries and states provide forgivable loans and good tax credits to flippers who choose to go green in their home.
Don’t get carried away
When you’re flipping your first property, it can be quite easy to get carried away. Renovating is fun and you might soon start thinking about your project as your baby. Many people begin to incorporate their own wishes into the design instead of concentrating on the buyers. So, having good discipline is the key to making a profit. Think about the person that’s going to buy the house and design it for them. Do a research of the area, see what kind of people buy properties there and then design a dream home for those people.
Renovating properties for profit is a great way to earn some money as long as you know what you’re doing. So, think location, smart improvements and good budget discipline and you’ll surely make it in the business.Follow us on social media