Many people will, at some stage, have considered ‘flipping’ a property. In basic terms, ‘flipping’ is the process of buying a property, renovating it and then reselling it for a profit. The approach can sometimes be favoured by property investors, and it can be a great way to get into the world of property investment. When done correctly, flipping can be very profitable. However, mistakes are easy to make, especially for those new to property investing.
Here we look at the key considerations when considering a property ‘flip’ and how advice from a Chartered Surveyor can help.
Finding the right property
The first step is to identify the right property. This means looking for properties that are undervalued and can be improved to add value. This will require research on local markets, as well as a thorough inspection of the property itself. As a Chartered Surveyor, we are often instructed by landlord clients to provide an accurate assessment of the condition of the property and its potential for improvement. This is usually in the form of a RICS Home Survey, however, other property inspection reports are available.
Assess the works
Once a suitable property has been identified, the next step is to assess the cost of any necessary renovations. This includes everything from the materials needed to carry out the work, to any professional fees that may be required. Due to recent price increases impacting the cost of labour and materials, budgeting has become even more important. In some cases, spiralling costs may even impact on the viability of the project. As Chartered Surveyors, we can provide clients with a budget estimate of the costs of improvements and renovations involved, based on the information from the property condition survey.
Reach an accurate valuation
Finally, once the work has been completed, it is important to be realistic about the potential sale price. This will require research into local market conditions to assess the likely demand for the property. As Chartered Surveyors, we frequently provide clients with an accurate assessment of the likely sale price in the form of a property valuation report. As we have no vested interest in whether or not the property sells, our valuations can be more accurate than those provided by other sources.
As Chartered Surveyors, our team are well placed to advise on the potential of flipping a property. We are able to assist clients in making an informed decision, providing a range of professional reports to help ensure they get the best possible return on their investment.
Please get in touch with out team to discuss your property investment plans and how we can help.
