Renovating for Profit: Property Flipping in Manchester

We all know that putting your money into bricks and mortar can be a good way to make it go further, but this does not always need to take the form of traditional property investment. Since the early noughties, property flipping has been a popular route to making a profit through property, as it can produce quick results without the long-term investment.

In this article, Pure Investor take a look at what property flipping is, and why you might want to consider it as part of your wider strategy when looking for property investment in Manchester.

[edit] What is property flipping?

Property flipping involves buying a property that needs a little attention and then renovating it before selling it on for a profit. It has been a trend for a while as a quick way to make a return on your money without needing to become a landlord.

It does not receive the passive investment that renting the property can achieve, and it will need added investment beyond the purchase price to get it into a condition where it can be sold for a profit. It can also be time-consuming, as the renovation project will need careful management to ensure that it is completed to the right standards whilst staying on budget.

[edit] Property flipping in Manchester

Currently one of the best places in the UK to undertake property flipping is in Manchester, and it is easy to see why. It has a healthy property market which moves at a rapid pace. The average property price is far below what is typically found further south, as it comes in at approximately £261,655.

This is great for all types of property investors, but as house prices in Manchester have risen by as much as 26% in the last five years, property flippers have found that they are able to add an average of £19,000 to the value of their properties with some renovations. Only Liverpool can boast fractionally higher increases, but their average price increases in the city are not on par with those seen in Manchester.

If you are looking to make improvements to a property, then it seems that house prices are not the only reason to find yourself in Manchester, as there are also more than five home improvement stores per square mile, making it a practical place as well as a profitable one!

[edit] Flipping home improvements

To make the most of property flipping, it is important that you make the right improvements. It is important to remember that you will not be living there, so try to make it as universally appealing as possible.

Redecorating is an obvious and important option as it can instantly transform the look and feel of a property. However, it is important to remember that neutral colours will have the widest appeal as they will give the buyers blank canvas.

Superficial defects such as peeling paint, dripping taps, mouldy sealant or squeaking floors can all contribute to making a property seem more rundown than it really is, so fixing these can make a quick and significant difference to how a property is viewed.

In some cases, it can be worth making bigger renovations such as loft conversions, extensions or constructing garages or conservatories. However, these require a lot more time and money so it is worth consulting with a local property expert to see how much value these will add to the property and whether you will get your money back.

Property flipping can be profitable if you approach it in the right way. It is important that you understand where value can be added to a property and whether it is financially worthwhile before you buy, in order to have a realistic expectation of the profit that can be made.

[edit] External links

https://www.pureinvestor.co.uk/research-centre/location-guides/property-investment-in-manchester

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