Flipping fantastic - your guide to turn that profitable idea into a reality

Investing in the property market will always be a good idea. With modern developments springing up in major cities and popular suburbs, there will be a steady supply of newly built homes for consumers to enjoy. However, many older or unfashionable homes are in great areas, just waiting to be restored to their former glory. Once renovated, these homes have the opportunity to fetch well over their asking price. You can turn flipping houses into a lucrative business venture by looking for key factors and following our top tips. 

Step 1: Purchase the right property in the right location 

A general sense of good real estate knowledge is needed to determine characteristics of the local housing market. Spend time speaking with property practitioners in the area you want to invest in, to get a better understanding of the property prices and trends. This will help you make informed decisions as you venture into the business of flipping houses for profit. As location is the most critical factor in determining property prices, you should focus on areas with good schools with close proximity to popular amenities. 

Step 2: Lock in on the house you want 

Look for distressed properties, houses that are on auction or nearing foreclosure. These will offer you a chance to buy them at below-market value rates. You can also select a home that needs renovations, but be mindful to keep your finances in check. Only choose properties that you can afford to renovate, otherwise, you will be stuck with burdensome debt that will be difficult to get rid of. 

Step 3: Budget and prioritise 

Stick. To. Your. Intended. Budget. We cannot stress this enough! It would be a good idea to outline all planned expenses, renovation costs, insurance, property taxes, utilities and unexpected costs. Always budget more than you think you would need for a particular house, and include the timeline you will be maintaining it for before flipping. Prioritise renovations of higher importance, such as roof repairs, kitchen and bathroom remodelling, flooring, and trendy improvements that capture buyers' attention. 

Step 4: Don’t be afraid to get your hands dirty with DIY 

One of the most effective hacks of flipping houses is saving cash on carrying out DIY projects. Leave the heavy lifting to the professionals and iron out minor upgrades by yourself or with the help of friends. Don’t underestimate the power of saving small amounts. Everything adds up at the end when it comes to flipping for profit on a bargain. 

Step 5: Negotiate the best deals 

Chances are, you will be working with contractors and service providers on a number of renovation projects. It would be a wise business decision to compile a list over time of the most reliable ones and form a professional relationship through repeat business. This will put you in good standing for discounted rates, which go a long way. 

Step 7: Keep your finger on the pulse 

Stay aware of current design trends that buyers will appreciate having in their homes. At the same time, aim to appeal to a wide audience with neutral colour palettes and modern fixtures. 

Step 8: Curb appeal matters 

The first impression of your flipped home needs to be attractive. Invest in a good landscaper, get a fresh paint job, and fix any flaws. Well-maintained exteriors can boost a property’s perceived value. 

Step 9. Price for profit 

By pricing your property competitively, you can attract the attention of buyers and spark interest. Always consider your initial investment and how much you’ve spent on getting the flipped house to the sellable state it is today.

Step 10. Time your sale 

Everything in life is seasonal, even selling homes! Peak real estate seasons can vary throughout the year, but a general rule of thumb is the beginning of the year, mid-year, and end of the year. These times coincide with lifestyle changes and can increase your chances of selling. 

Flipping homes in South Africa is a great way to earn your stripes in the property market and build your portfolio of investments. REALGLEN Properties has a number of incredible houses on the market, specialising in the region of Gauteng. Contact us today to discuss your options.