Buy Cheap . Change Quick . Gain Profit
New buildings are rising every day as we speak, real estate has become one of the key growing aspects in the Phnom Penh cities. But did you know that there is another alternative way to gain profit in real estate besides investing in a newly listed property?
What is it?
House flipping is a concept where we’re investing in a property that is most likely outdated at an affordable price, then renovating it to sell it back at a higher price. Basically, it means you buy a house to resell it back higher than when you purchased it.
Any type of property can be flipped, from older houses that have been leftover on the market, outdated or unattractive to the current trend of the property.
However, you need to be mindful before considering it since the price alone won’t make it a great investment.
Why should you consider it?
It is an alternative way to invest your money. The majority of people hesitate to invest their money in stock because it is not tangible. Since the property is a tangible asset, it is less risky for beginners to start with. Besides that, the return of investment for house flipping is the potential profit you should consider. If you did it right, it is possible to start a business in that department.
Misconception
When we hear about gaining profit through reselling, some people might believe it to be easy money. Consider the house alone, it won’t guarantee you the revenue that you want. We need to consider the location, condition of the house, amenities, and surrounding areas of the property. Besides, one of the key factors you need to consider is the renovation budget. For example, you might buy a house for $50,000 and plan to sell it back double the price. What if the renovation cost more than you expected, like around $45,000, you won’t be able to receive as many benefits as you expected. There are countless responsibilities you need to handle and if you get carried away and do not plan an exact plan for it, you could end up destroying the opportunities. It is best to have a professional person to guide you or be in your team, like a contractor or home inspector to help.
Conclusion
House flip is one of the best ways to gain profit, however, you need to be mindful about it. Lastly, house flip is not all about new owners seeking outdated property. It can also be any property of yours that needs renovation or need improvement. Our company also helps leaseholders to renovate their property in order to gain more profit in their rental.
Consult us now for more information