For the past few months, I have been following shows on YouTube that have figured out the business of house flipping in South Africa.
Generally, house flipping has its pros and cons and as the property buyer, you’re going to need to perform proper calculations for a profitable flip in the end.
Without wasting your time, let’s get started.
What is House Flipping?
House flipping is the idea within the real estate business that entrepreneurs use to build wealth.
You’ll buy a property at a low cost, a property with fewer issues, flip or renovate with new and modern features for selling in the future for a good profit.
It’s certainly not an easy business to get started, it requires a lot of capital and good relationships with banks and contractors for a better house-flipping project.
After renovating the house with new features, you’ll then put it back onto the market and sell it for a few extra rands, depending on the location and current value of the property.
While in most cases, you’ll be required to renovate the property, sometimes house flipping could simply mean holding on to the property for value appreciation and selling it.
Why House Flipping Though?
There are many advantages of flipping houses in South Africa, and the biggest one is investing money for profit gains.
Owning a property for long costs money but flipping a house will cost less for a decent profit in a short space of time.
You can start part-time, for additional income streams and once you’ve made more, you can work the business full-time – be your own boss.
House flipping will boost your investment portfolio in the long run, especially when you do it at an early age, allowing your money enough time to compound.
How Much You’ll Need To Get Started
To get started with house flipping in South Africa, assuming you don’t currently own any property, you’ll need possibly over R850,000 to buy and flip a house for profit.
Without a doubt, you will make a lot of money by flipping houses however be prepared to spend some money too at the beginning of your journey or business.
Remember your job here is to invest in real estate, taking the risks and ensuring your return on investment (ROI). And to increase your chances of making a good profit, you’ll need to work with professionals to work on your house and build good relationships with them for future projects at affordable costs.
Always stick to the budget, to try to maximize the profit of flipping the property. Once you’ve completed more house-flipping projects, you’ll be on a roll to hunt for more properties to buy into your business.
A Good Team Is Key
Building a great team to work on your house flipping projects is very important for the success and quality development of the property.
You’ll need a good team of legal advisors/attorneys, real estate agents, and trusted contractors for plumbing, electrical, brick layering, etc.
Next, you must always have a timeline for the project completion and each of the above team members must be involved to estimate the times.
You don’t want to lose value for the property by working with cheap contractors, go big and build your wealth the right way with house flipping in South Africa.
Where to Find Houses for Sale
While working closely with your real estate agent, trying to find properties to buy and flip, you might also want to search for newly added properties online.
Share the houses with your real estate agent to discuss and start the negotiation process of any house purchase in South Africa.
All the best in selling your next property.