According to reports, house flipping in the UK can earn you more than a 20% return on investment. The only catch here is knowing what to do and how to do it right to save money and earn more. This includes staging it perfectly for outright sale. Keeping costs down is an open secret in the house flipping market. Admittedly, it is easier said than done, but you can overcome most of the initial hurdles with flipping houses when you show tenacity. Below is a list of some ways and deals you can adopt to save money.
Consider reusing reclaimed building materials
Reclaimed materials are building items sourced from deconstructed houses. Take note that these are very different from demolished properties. Usually, with demolished buildings, there is nothing much to salvage or reuse. On the other hand, a deconstructed house involves cautiously removing or dismantling building components of an existing structure for reuse in another. Reclaimed materials are cheaper but not of inferior quality.
However, you (the house flipper) are responsible for checking if these materials would not cause severe damage to the flipped property in the short or long term. The primary objective of flipping dwells on buying property at a low price and selling it at a higher value to make a profit. For this reason, the allure of selling flipped houses quickly may bring about dishonest business ethics. However, it’s worth knowing that saving money has nothing to do with deceitful ethics.
Indeed, there is a more positive impact on the potential buyer. For instance, more people are seeing the benefits of saving the environment. For this reason, instead of reclaimed materials ending at the landfill site, an eco-friendly buyer will see the added value and purchase it at the given price. And that means they are saving more, earning a profit, and thinking of the environment.
Seek houses that are considered ‘undesirable’ but won’t cost much to repair
If this raises questions in your mind, there is a good reason why. The first is, how is it possible to combine unappealing property with inexpensive repairs? Ideally, if it’s undesirable or unsightly, it should take more money to fix, right? Well, here is the news to counter that perception. When flipping houses, look for those properties that look odd but have a solid foundation. Usually, things that make a house look undesirable are old, chipping paint works, patchy dried-up lawns, overgrown weeds, discoloured front and backdoors, broken windows, etc.
These ‘faults’ are not too costly to fix compared to significant plumbing issues and leaky roofs. While you may not be an expert in assessing the quality of the foundation, you can find experienced professionals to do that evaluation. The guiding rule is to draw up a partnership with these professionals. Through this business alliance, you can enjoy lower rates for house inspections. Thanks to the UK’s impressive interest in this space, you can find organisations like BuyAssociation who can provide you with unique investment opportunities within your local property market.
Purchase from shops with overstocked building materials
Shops with overstocked inventories or wares tend to give more discounts than other stores with just enough goods. And with regards to flipping houses, this is another excellent way to save money if you fail to source reclaimed building materials. The truth is, overstocked building material shops feel the pressure to sell their wares quickly and often at discounted rates to avoid running into significant losses. As they race against making huge losses, that can be your gain.
The UK’s house-flipping market keeps appreciating, having increased the average profit from £29,685 to £40,995 (2020). So if you’re thinking of entering this industry, you have much to gain, and the tips discussed can guide you.