I keep reading in the papers about 'flipping' property and how many are seeing it as an alternative property investment to the traditional buy to let investments.
Flipping property is the current term for buying a house that requires work and selling it on for a profit after the renovations. In a fast moving city market this can be a lucrative business but what about Bingham?
Have there been many properties flipped in our town or are we a more traditional property market? I looked through the pages and pages of Land Registry Data to see what properties had been bought and sold again in a short time scale and had achieved a much higher price when re sold. Remember Land Registry show the achieved prices for the sales not the advertised prices.
Interestingly there were only 5 properties in the NG13 postcode that could have been flipped and sold in the last year. Looking at previous details of these properties on rightmove, many of the properties were semi detached family homes purchased originally for around £ 150,000 and they were sold for an average of 48% increase in value after a renovations that were completed in under 12 months.
I had expected to see more examples of flipping in Bingham, but perhaps due to the lack of property on the market and a high demand from buyers keeps the prices of properties needing work higher than you might find in a city.
If you are looking to buy a property in need of refurbishment then you really need to keep a sharp eye on the market as when they come up for sale they don’t seem to hang around for long!
There are lots of things to consider if you are investing in a property, if you are looking to sell after a renovation then you must calculate borrowing cost for the duration of the works or you could find yourself at a loss after all the hard work!
If you are looking for a property investment then give me a call for honest advice on potential rental returns and to get an understanding of the right areas to invest in Bingham.