The average age of a person when they buy a house is aged 30, and most often they are starting the lifelong process of buying and then moving to bigger and more substantial houses, eventually owning a mortgage-free home. Sadly, most people will not pay off their mortgage until they retire, which means a lifelong commitment to a huge monthly debt.
This used to be the accepted process any young couple would go through, before having a baby and growing their family and home to match. Today’s society though is more ambitious, and flipping houses is now seen as a viable way for pretty much anybody to work their way to mortgage-free.
Before, those who renovate for profit were property developers and everybody else was stuck on the slow journey to mortgage free many years after buying a first property. These days, with DIY instructionals, enabling everyone and anyone to self-learn, various entrepreneurial routes to raising capital, and a more savvy and open world of information on mortgages and acquiring property, there really is every reason any person can property flip their way to mortgage-free.
Property Flipping: What Is It And Why Do It?
Property flipping is where you buy a property purposely to ‘do it up’ and renovate it to a stage where you can then sell it on at a profit. The reason an investor would do this is to make a chunk of money in a relatively quick process. For those looking to eventually own their home in full, this enables them to purchase a property, then make enough money on its sale after renovation, to then buy a higher value property, and thus continue that process until they have made enough to purchase a property in full.
Is It Really That Easy?
No, it isn’t completely straightforward. There are lots of sacrifices you will need to be willing to make to go through this process such as:
- Choosing houses to live in that you don’t mind renovating at the same time
- Choosing houses you may not love, but that offer the best return
- Renovating for profit, not for personal taste
- Moving a lot and never properly settling
- Being OK with always working on a home and never just enjoying being at the property
Flipping properties to eventually be mortgage-free is a hard life, and it is not free of risk. You could lose money on your investment, you could find a hidden issue with the property that crops up. You will have to become extremely savvy with money, DIY, the property market and the entire world of flipping properties but if you do manage to flip successfully, you could benefit from short-term profit and the long-term goal of having a mortgage-free home eventually.
How To Help Ensure Your Flip Is A Success
Flipping to be mortgage-free is not guaranteed, but there are certain things you can do to enhance your chances of your latest flip being a success:
Get Entirely Clued Up
There are so many free resources out there to help you learn about flipping properties including:
Learn everything you can, and seek professional advice relating to your own financial situation so that you have as much understanding as possible about the industry you’re entering into.
Location Is Still Key
Remember that where your latest property sits is as important as the property itself. How valuable is the area? What is your proximity to local towns? Are you near a school? Is there planned major renovation of the area? Understand your target buyer and what they want from the property you are renovating. Location is absolutely central to getting a quick sale.
Different Property Types Offer Different Flipping Opportunities
Certain types of property will always appeal to certain types of buyer. A two or three-bedroom house with a good-sized garden is ideal for a first-time buyer or small family who statistics show are committed to improving their quality of life. Whereas a flat with good proximity to a city is geared towards professionals who care more about a practical living space that makes it as easy as possible for them to live a good life close to their employer.
Bungalows can be a great investment for retirement buyers or sometimes people who want something a little different. Understand which properties appeal to which buyer demographics so you have an understanding of your buyer before you buy and renovate.
Get Used To Keeping Costs Down
Although you will be living in the property you do still need to keep costs down as much as possible to increase your profit. Be aware of utility bills, and the cost of any help from contractors. Choose a good quality bath from Bathdisc, and solid neutral paints and flooring, remembering the entire time that these improvements are to make you profit in the end.
Get Used To Knowing When To Walk Away
There are tons of opportunities to strike an amazing deal if you know what you are looking for. Often properties where somebody has passed away, there is repossession or a property is in need of a lot of work can be ready for a quick sale at a reduced price to you. Sometimes over-eager bidders with little experience, or who actually want the house as their forever home may outbid you and want to overpay, in which case you need to know when to walk away.
Get Ready To Make Mistakes and Learn From Them Fast
You will have big learning curves and mistakes, but the key is learning fast and making the most of the opportunities to learn. The process of renovating is a challenge but being open and ready to learn means your tactics and skills are only going to continue to build and improve your house flipping game.
The road to success is always under construction – Lily Tomlin
Flipping houses to make a profit is a long-standing profession in the UK, but flipping houses to be mortgage-free is certainly a newer concept for Millenials who want to take their fate into their own hands and quickly cultivate a secure financial future for themselves. It could be the right path for you to fully own your own home in the future, but only if you put the effort in now to learn, be savvy and put in the effort now for potentially huge wins later.