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.
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