The criteria for seeking a property when you are looking to invest and flip are completely different to the selection criteria for buying a property as your ‘dream home’. Unless you’re an ardent DIYer, you may shy away from some of the more challenging problems that you encounter on viewings.

Remedying subsidence when living in the property, working, and bringing up a family is no mean feat, and will not appeal to the majority of families who would rather have something that was immediately moveable into, requiring a simple lick of paint to make it your own.

When looking to renovate a property for flipping, you want to focus on improvements that will significantly increase its value relative to the investment. Often that means tackling the areas that others would deem too big and expensive to be worthwhile.

The following five areas represent the renovation projects that represent the most in terms of added value. The more of these a potential purchase has, the greater your potential profit margin.

Replacing Outdated Or Poorly Designed Kitchen & Bathrooms

Any homeowner dreams of moving into a property with their dream kitchen or bathroom, though often these are the two rooms that get overlooked time and again simply because they can represent a considerable investment after already paying out moving in costs and shouldering an expensive mortgage.

Taking this job away from a potential purchaser by can often add more than the value of the kitchen as removes the element of stress from a future homeowner. Make sure that you don’t over-invest, but carry out a refurbishment that is on trend, neutral, and still allows any future owner to add their own unique individuality.

Embrace Structural Problems

Structural issues can be frightening for most people. Whether you’re looking at large detached country properties, or traditional apartment blocks in Chelsea and Kensington, problems such as damp proofing, foundation cracks, sagging floors, or roof damage can be costly to repair.

If you have knowledge and experience in these areas, you can be in the perfect position to draw on this knowledge and fix the problems most people shy away from, immediately placing additional value on a property.

Increasing Curb Appeal

When budgets are tight, homeowners will concentrate on those interior rooms which get the most wear and tear, and where they spend the most time. For an investor, however, seeking a quick turnover on a flip property, curb appeal is crucial to speeding that process up.

That first impression will set the emotional tone of a potential sale. That ‘must have’ foundation is laid by a fresh, vibrant and welcoming external appearance that establishes the property as a potential homeowner’s future forever home.

Green Updates

Not only does inefficient heating, cooling, and insulation drive up utility costs and make a property less desirable to buyers, they may also be prone to regulatory changes and potential fines as governments impose ever more stringent carbon neutral demand on property owners.

Upgrading to energy-efficient windows, installing insulation, and replacing outdated HVAC systems can make the property more carbon net zero and the owners immediately more compliant to future regulations.

Functionality & Layout

The way in which we occupy properties these days has changed. Kitchens are more open plan living areas where families gather and socialize. Inside/outside living extends space and light. Properties with awkward layouts or wasted space can be less appealing to buyers. Look for rooms that are too small or poorly configured, as well as inefficient use of space such as large hallways or underutilized areas.

One last thing – when looking at properties remember these two golden rules:

  1. Make sure you do your due diligence! Run the numbers, and If they don’t stack up, don’t proceed with the purchase. You are buying 100% with your head not your heart.
  2. Use any structural and decorative defects to negotiate down your offer price. The more you can move towards a BMV Below Market Value price, the greater your potential profit margin.