It is possible that you can make money on a home renovation, however, it may not be as easy as you may think. With all the house renovation shows you see on TV like the Aussie Property Flippers TV show, you can assume that house flipping can straightaway make you some quick buck. Before you dive into a house renovation project with the intention of making a profit you want to see through the lenses.
House flipping involves selling and buying a property with the aim of renovating it to sell at profit. It’s a short-timed process that takes a couple of months as opposed to the typical property investment that can allow you to hold onto a real estate property for years or decades. Despite what reality shows are making you believe, you want to realize that house flipping in Sydney intended to make a profit isn’t so easy. So the big question is; can you make money renovating houses and what exactly do you need to do to make it happen? There are many hurdles and bottlenecks witnessed in house flipping journeys and real estate entrepreneurs will tell you that the renovation cost can push you away from making a profit. If you cannot sell the renovated property at a price that exceeds the buying price, the cost of holding the property, plus the renovation expenses, it is likely that your flip will flop.
So how do you profitably flip a house?
If you have to make a decent profit from a house flip, you should plan. Work out a reasonable budget. Once you develop a budget, stick to it. Get a spreadsheet where you detail everything down including the little things you will spend on – materials, labour, capital gains tax, agents fees, interest on a home loan. Make sure you look into hidden costs that can come as a surprise – they can impact on the profit margin.
You want to pick the right property located in the right suburb and at the right price. See what the market rate is and aim to purchase below that rate. Buying below the market rate increases your chances of attaining a profit after renovating and selling the home.
If you are buying in a suburb where you lack the local knowledge, it may take a lot of your time and require more research to put together the market details. Probably, a real estate agent can help you find the right home to flip. These agents are likely to know much about the properties that are best-fit for flipping.
You also want what families want to see in a home – so that you can focus on that during the renovation.
It’s paramount you look into your buyers – who are they and what features would they be looking for when buying a home. Your renovations should appeal to the buyers. If you want to maximise ROI, you should focus on cosmetic projects – avoid larger structural renovations or those labour intensive features that rack up the cost of repair and renovation. This also means that before you purchase the home, ensure it’s structurally sound and probably what it needs are some minor renovations.
Some reasonable projects you can go with for house flipping include – new flooring, repainting, tidying up the gardens and doing a bit of landscaping. You can also work on the outdoor areas to spruce up their look so that you appeal to the buyers. Remember that the first thing the aspiring buyers see is the exteriors including the gardens, backyards, the fencing, and other features. Make them stand out but keep on budget.
To further shrink the cost of renovation, shop around for bargains, buy the materials and other products on end line sale promotions and offers. Every penny you are spending counts when flipping – don’t take any chances when it comes to the cost of renovations.
While you need to get your hands dirty by involving yourself in DIY tasks of your reno like removing the old carpet, doing the cleaning, and probably clearing the yard, you want to seek experienced renovators to work on the more demanding tasks. The plumbing, major building work, electrical, and painting would need the hands of a licensed professional like Mr and Mrs Elias.
You need to come up with a timeline in which you renovate and list your property for sale. Collaborate with the renovators to ensure that the work goes on as desired and it is completed on time. Once the renovation work is done and the property cleaned, you can list it to ensure it sells as fast as possible.
If you’re wondering how to make money from property renovation, you want to realise that it’s not an easy thing. It’s possible to make some buck from house flipping in Sydney, however, you need to contact the right renovators. If you’re looking to uplift and unlock your home, contact us today to see how you can make money on your house renovation.