Over the last few decades, there have been several investment crazes which have swept the world. As one of the biggest of these, buying cheap property at auction, renovating and improving it, and then selling it on for a profit has long been popular. Known as flipping, it can be successful enough to land some people their own TV shows. Is this sort of investment a logical path to take in the modern age, though? To help you out with this, this post will be exploring some of the key elements which have changed on this side of investment.
Renovating a home has always be an expensive and grueling task. Unless you have a lot of experience, it will be hard to perform even the fundamental parts of the job, with the law preventing you from doing the more complicated ones. This will force you to hire a contractor to handle the jobs for you, and this will eat into the profit you can make at the end of it. On the bright side of this, construction companies will often give investors discounts for loyalty, giving you savings to look forward to on future projects.
With it taking a long time to get the renovations done, it can be hard to predict what the house will be worth once you’re ready to sell. A surveyor or estate agent may be able to give you an estimate, but this won’t be exact, and prices could drop before you get onto the market. Thankfully, there are loads of modern websites which can help you to get to grips with this part of property investment.
Along with time, costs have to be a consideration, as it can be hard to ensure that you’ll make enough of a profit to cover the price of renovations, the property, and your time. Before you even take the risk, though, you have find the funding for it. Private money loans can be great for this. Instead of relying on a big business, you will be using something much more friendly, giving you the chance to seek advice when you are worried about the money you’re trying to invest.
It’s hard to say whether or not property investment in this shape and size is right in the modern age. On the one hand, the quality of a lot of homes is going down, and this makes it easier to find cheap examples at auction, potentially giving new life to this side of investment. On the other, though, mortgages are hard to get, and there are loads of routes out there which don’t involve anywhere near as much dedication to make a profit.
Hopefully, this post will inspire you to start working harder on the time you put into your life as a property investor. If you choose to go into this field, it’s worth making sure that you’re using everything at your disposal, even if this means holding off while you take some time to learn the skills you need.