House flipping is an excellent way to make some money and to gain some new skills into the bargain, but it may not always be as affordable as you might imagine. It’s important to know roughly how much house flipping is going to cost you to determine whether it’s the right investment for you.
If you’ve got enough money, skills, and time to flip houses, it’s certainly something that could help you make a profit. It can also give you a wonderful feeling of satisfaction when you turn a property into a beautiful home from an unliveable shell.
But if you have limited DIY skills, you may find that it costs you far more than you imagined to turn a mess of a property into a dream home. Here, we take a closer look at the costs involved in house flipping so you can make a well-informed decision about whether it’s worth your while.
An Overall Guide To House Flipping Costs
Of course, there are many different factors involved when it comes to determining the cost of flipping any property, but on average you can expect to pay the following amounts:
- £500-£2500 for a gas supply
- £2500-£8500 for a heating system
- £4000-£7500 for rewiring
- £2500-£6000 for windows
- £1500-£3500 for replastering the walls
- £2200-£3800 to replace skirtings
- £5000-£7000 to paint the walls and ceilings
- £1000-£1500 for a new cloakroom W/C
- £10000-£25000 for a new kitchen
On average, for a 3 bedroom home, you can expect the cost of flipping a property to be between £38,000 and £74,000, although depending on the fittings you choose and the works required, you could pay more or less than this figure.
What Are The Labour Costs For House Flipping?
Before you begin the process of renovating a house, you need to know roughly how much you’ll need to pay contractors to carry out the work. Electricians and plumbers usually charge daily rates of between £200 and £400 a day, with other tradespeople such as painters, carpenters, roofers, and plasterers charging about £200 per day.
Since contractors usually charge on a daily basis, you’ll need to have an idea of how long your project will take. Make sure to get professional advice about the length of your project before you choose any contractors.
Additional Costs Involved In House Flipping
You won’t just need to pay for labour costs when flipping a property, there are some other costs to consider too. Some potential additions to the overall cost include skip hire, redesigning or landscaping the garden, legal fees, stamp duty, estate agent fees, holding costs, survey fees, and tax on your profits as well as the costs of financing the property via interest or mortgage payments. Planning permission may also be needed and will cost an extra fee too.
How Long Will House Flipping Take?
The length of time taken to flip any property will depend on the amount of work that will be needed. Merely superficial improvements such as a repaint and plaster job can be completed in weeks whereas gutting the entire property and redoing it completely will take several months.
How Do I Choose The Right Property For Flipping?
When you’re considering flipping a property, you need to focus primarily on profitability. You have to be sure that any property you buy will be worth selling once the work has been completely. You must check whether the renovations that are required to bring the property up to a liveable standard will cost more than the home’s final eventual value.
It’s false economy to purchase a property, renovate it fully, then discover you’ve spent far more money on it than you could possibly make back. Location is another vital considering when choosing a property to flip.
A property located in a popular and desirable area that has amenities, transport, and good local schools in the immediate vicinity, is most likely to get you the best price once you’ve carried out the work.
A Guide To Your First House Flip
If you’ve never flipped a property before, it’s important to know how to get started in the most effective way.
The first important thing to do is to figure out precisely which works need to be completed. Get a complete survey carried out so that you have a clear idea of exactly what requires fixing then determine any additional works that you want to carry out so that you can get the best possible price during a sale.
Once you know the jobs that require completion, the next step is to find reliable tradespeople who can give you a quote. It couldn’t be more important to find contractors that you can trust, so reading reviews and getting recommendations from friends and family members is always a good idea.
What Is The Minimum Amount You Can Flip A Property For?
There is no single answer to this question since there are a lot of different factors to keep in mind. If you’re purchasing a low cost property in a northern location, it’s potentially possible to flip the property with just £100,000. However, if you’re considering a property in the south of the country, you’ll almost certainly need to spend more.
Can I Flip Several Properties Each Year?
There’s no legal limit to the number of properties that you can flip during any given year – the only limits are your own money and time. In theory, you may be able to flip as many as 6 properties in a single year as long as there are no property chains involved and you have plenty of disposable income.
If you’re new to property flipping, the best course of action is to start with one smaller project and work upwards from there. Flipping any home can often be a stressful and costly process, so it’s very important to take these tips and average costs into account before you get started on any project to make sure that it’s worthwhile for you.