Flipping houses 101: All you need to know
Category News
With the interest rate still at the lowest it's been in 50 years, there has been increasing interest in "flipping houses". Flipping a house involves buying a property with the express purpose of upgrading it and then selling it again to make a profit. The current low interest rates improve your odds of making a profit through such an endeavour, provided that you do your homework thoroughly and enlist the help of an expert. By adhering to a few house-flipping tips, you can make the most of the current buyers' market and low interest rate.
House-flipping tip 1: Stick to a budget
Think carefully about how much investment capital you have and how much you are willing to borrow to finance. Using a bond originator is a must, and ooba is the ideal partner to help you secure a great home loan deal. Ooba's range of calculators and indicators will be immensely helpful in your planning process. The tools on offer include a bond calculator, a repayments calculator and a transfer cost calculator, among others. Once you have established a budget, be sure to stick to it and not dip further than planned into your savings. Your budget will need to cover both the cost of the property and the cost of renovations and upgrades, so if a property needs a lot of love, make sure the amount that you offer leaves enough to turn it into its next owner's dream home.
House-flipping tip 2: Buy smart and renovate smarter
In a nutshell, the ideal "house flip" involves buying the worst house in a good area and transforming it into one of the best houses in that good area. One of the golden rules of home-flipping is ensuring that you have in-depth knowledge of the area in which you plan to invest. This is where your Jawitz #RealPartner can be of great assistance. With the help of their extensive knowledge of the area and past sales, you can avoid overcapitalising and invest your money wisely to place your property among the most desirable in the area.
A kitchen or bathroom that needs attention is among the biggest off-putters to a would-be buyer. Creating a kitchen that turns heads and bathrooms that look clean and practical should be among every renovator's top priorities. Remember that you are renovating not decorating - and the end result should look like a sophisticated blank canvas, ready for the home's next owners to showcase their tastes.
House-flipping tip 3: Don't overspend - even if you can afford it
House-flipping is about making a return on your investment, and if you overspend on upgrades, you will need to price the property at the top end of the market in order to make your return. Buyers who are shopping in the top end of the market are price-savvy and will not pay an inflated price for your property, regardless of how sophisticated the finishings are. The value of any property is closely related to its location and the amenities around it, as well as the recent sales in the area - it is not determined solely on the merits of the property and the upgrades that have been carried out.
House-flipping tip 4: Put together a timeline and a great team
If a house-flip takes years to execute, you're likely to lose out on maximum value from the transaction. Before signing on the dotted line to purchase the property, make sure you have a team of plumbers, painters, handymen and electricians available. These should be people or companies that you have worked with before, or who have been personally recommended to you. The quicker and smoother the job goes, the more cost-effective your house-flip will be.
The most important house-flipping tip of all is to work with a Jawitz #RealPartner, who will provide all the advice and the 52 years of industry expertise that you need. Houses are waiting to be flipped in every corner of South Africa, and your journey begins when you contact the Jawitz Properties team.
Author: Jawitz Properties
