12 Nov Investment Plans for 2015: Why House Flipping can help your Money go Further
With Christmas now less than seven weeks away, the majority of households are preoccupied with buying gifts and ensuring that they are adequately stocked with food, drink and party games. For forward-thinking individuals, however, there may also be an emphasis on preparing financially for 2015 and developing a lucrative investment portfolio. If you belong to this distinct group of people, you may want to consider house-flipping as a viable investment opportunity.
House Flipping for 2015: Why it Represents an Excellent Investment Opportunity
Since the great recession, the quick house sale industry has gained considerable momentum in the UK. Firms within this sector buy properties for less than their market value, execute low-cost improvements and sell them on for a substantial profit. Led by reputable and innovative companies such as the House Buyer Bureau, this service enabled home-owners who had defaulted on their mortgage an opportunity to recoup their losses and maximise the resale value of their home. From a business perspective, the service provider in question was also able to make a healthy profit and gradually develop their venture.
This will no doubt be of interest to those who want to invest in property, especially individuals who are looking to expand into potential growth markets in 2015. While the UK housing market may have cooled significantly of late, it remains relatively robust and falling property prices may actually enable investors to source homes at particularly competitive price points. So long as you have some understanding of the market and are able to add value to real estate in a cost-effective manner, the recent stagnation may even allow you to increase your profit margins as an investor.
The Last Word
The issue of adding value is one of the key considerations when pursuing house-flipping as an investment opportunity. Even if you are able to source low-cost properties below their market value, the current trend for falling prices will mean that simply reselling the house is unlikely to develop a significant return.
The speed at which you complete the house-flipping process is also critical, especially in a volatile and constantly changing property market. The best firms are able to purchase a home, add value and execute its sale within seven days, and even if you cannot match this you must commit to having a clearly defined strategy in place to ensure that you operate efficiently and in a way that drives profitability.