While the UK’s economy is continuing to cool, it still remains among the most buoyant and developed in the world. This is according to a report by the National Institute of Economic and Social Research, which predicts 3% growth in Great Britain this year and a further 2.5% expansion in 2015. This is encouraging news for the nations’ army of business owners and aspiring start-ups, who can capitalise on this growth with a creative concept and a high standard of execution. This growth is also viable in the US in cities like Delray Beach, this article will focus on the UK market.
Entering the Real Estate Market: House Flipping as a Viable Source of Income
In terms of quick and relatively simple business ideas, house flipping has emerged as one of the most popular in recent times. This is largely due to last years’ growth in the UK property market, which has popularised the sector and made it increasingly lucrative. The interest in this market is unlikely to abate, as even the recent decline provides opportunities for aspiring entrepreneurs who are keen to gain a foothold in the property sector. If you are going to establish yourself as a potential house flipper, however, there are several key points that you will need to bear in mind.
To begin with, it is important to note that falling price points do not necessarily make the real estate market a viable entity. This will also impact on the resale value of each individual property, so you must carefully calculate your estimated profit prior to making a decision. The other pressing issue is your ability to add value to a recently purchased property and execute improvements in a cost and time effective manner. Without this, you are restricting the resale price you can charge to potential buyers and minimising your profitability.
With these points in mind, your best bet may be to follow the example of a successful business within the industry. Take Below Value, for example, as this reputable firm have achieved considerable success by purchasing properties below market value and transforming them into higher-end homes that deliver a higher profit margin. Beyond showcasing the ideal balance between cost, vale and profitability, this company also underlines the need to offer customers’ a fair deal.
This is arguably the single most important thing to keep in mind, as no vendor will sell their property if your offer is drastically below market value. So be precise when calculating your figures and ensure that you are able to offer a fair and just amount of money that maximises all potential profits.