A Quick Look at the Home Flipping Market in the UK

While home flipping in some areas of the UK is still a lucrative investment, there are other areas in which you may see little to no profit based on current market conditions. Nevertheless, there is still money to be made, and home flipping is still something property investors might be willing to explore. Let’s take a quick look at home flipping in the UK and what you can expect in the foreseeable future.

The Importance of Accurate Valuation

The very first thing you need to determine is the importance of an accurate home buyers survey to get an accurate assessment of a property’s current market value. For example, a house surveyor in Norwich will take into consideration such things as the age and condition of the home through a building survey. While some features may impact the valuation of the house significantly, other things which may seem like much-needed major repairs or renovations may have little impact on the current valuation according to buildings surveyors. Bear in mind that as an investor who is looking to realise a profit on the investment, a homebuyer survey would be used as the foundation of what still needs to be done to achieve this. Property surveyors will also factor in the size of the land, the location and any important features that could impact price.

A Solid Housing Market Forecast

With a chartered surveying report in hand and a look at the housing market forecast, it may be possible to calculate how much money you will need to invest in that property to make it attractive to today’s homebuyer. Bear in mind that RICS surveying results are regulated so that property valuers are kept under strict confines of those regulations. In other words, the price the home is listed for today is as accurate as it gets. It’s knowing how to find housing market forecasts that you really need to pay attention to.

Lenders, Loans and LTV

Here’s where the real issue comes about. As an investor in the buy to flip market, it is imperative that you have a substantial amount to invest. The reason why is that lenders are getting much stricter on 95% mortgages, which in fact, are almost unheard of in today’s world. You have that accurate valuation report from the surveyor RICS regulated company, so you can expect to put a sizeable down payment to qualify for a loan. With the money you will be investing, the loan and interest paid until you flip the home, you want to know that you can expect a decent return on your money. Once again, the LTV will not be nearly as much as you would have seen just a few years ago, so pay special attention to the interest rate you will be paying on a higher value mortgage based on the valuation by the property surveyor.

Unless the housing market crashes, which doesn’t seem to be in the forecast, there is money to be made in flipping homes. As one last reminder, don’t forget to factor in the amount of money you will need to invest in anything that needs to be fixed, updated or restored. With all that in mind, happy flipping!