In this article, we discuss how to make money flipping houses.
We will use one of our own case studies to show how it’s possible to make a 29% profit on your property investment. After reading this you will understand how to make money flipping houses!!
Flipping houses is one of the most popular ways of making money in the UK. The profits that you will make enable you to quit your day job and live a more relaxing lifestyle.
There are some pros and cons to this strategy that we will discuss below.
Pros:
- Once the property is sold there are no ongoing costs. No ongoing maintenance.
- Any financing raised to complete the development can be paid back leaving your profit to be reinvested into your next project.
Cons:
- You get paid once, that’s it. Once you have completed the sale, all profits will be paid to you. Whereas a buy to let will continue to pay you for years to come. You will achieve the capital appreciation (property generally going up in value over time).
- Capital Gains Tax: You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home. Link to UK capital gains calculator.
Case Study 3 Bed terraced Cottage Sunderland
How to make money flipping houses
You can be a bit more creative with a flip, using high spec materials, potentially extending the property footprint will add value. But you need to keep in mind that people have different tastes. Try and stay with designs that are trending, not just what you like.
Purchase price: £35,000 plus auction fees
Refurb costs: £13,500
Sale Price: £69,000
The scope of works was as follows. Full strip out including strip some walls back to bare brick as we were installing a damp-proof course.
We began by doing a full rewire because of the amount of work the property had gone through.
The property was fully re-plaster throughout along with all new joinery including doors, frames, skirting architraves.
We fitted a new kitchen and bathroom including new tiles to walls and floors. Our buy to let properties don’t get floor tiles as is a big job to replace if damaged or out of fashion at the end of a tenancy.
New front and rear uPVC door and fully neutral decoration and carpets throughout the rest of the property.
This property went on the market just as the COVID pandemic was taking hold in the UK but because of the quality finishes, we accepted an offer within 3 weeks of listing it.
Professional Snagging
Professional snagging companies are hired at the end of construction projects to check the quality of the work that has been carried out. Their role is to identify any defects or areas that need improvement before the project is completed. This ensures that the final product meets the highest standards of quality and safety. Professional snagging companies are an essential part of any construction project, and their work helps to ensure a successful outcome.
To conclude, start out with a clear plan. Do some research about property interiors. Check out Rightmove to find out what has sold in the area and check out the interior photos. . Please, try not to think about what you like but what a wider range of buyers will be looking for.