The real estate industry was a popular choice for entrepreneurs in 2020. Last year alone, 16,747 businesses registered in the buying and selling of their own real estate sector, according to new research conducted by instantprint. The pandemic caused a crash in the financial market, and this is forecast to hit the housing market in 2021. As the UK economy dwindles, only the most committed buyers will proceed with their housing plans, and the rest will wait until the market stabilises.
So, what exactly is the buying and selling of own real estate? Flipping a house is when a developer buys a property below market value, renovates it and sells it for a higher price. Typically, experienced flippers plan for a minimum of 20% profit, but it can be much higher. Flipping is a popular investment strategy across the UK and can be done in a few simple steps.
First, buy the worst house on the best street you can afford, then add value. Individual flippers can’t afford to change an entire road, but you can renovate a home and rebuild if needed. Before you jump to the exciting interior design, make sure the building is water-tight, warm, damp-free and stable. Simple things like installing central heating and security systems can make a world of difference to the final value.
Furthermore, 2021 might be the perfect time to start your house flipping business. The economy is unstable, and things are likely to get much worse before they get better. This also means there are more bargain properties on the market right now than there will be in the future.
If you plan to launch a renovation, please ensure you have the proper safety and sanitation equipment. The economy isn’t the only challenge of starting a business in lockdown. You need to ensure that everyone on the premise follows social distancing and isolates when necessary.
London is still at the heart of the business industry, especially for new start-ups. However, London does not match the rises in regional areas, like Birmingham, Manchester and Leeds in real-estate. As prices in the capital soar, property developers are seeking developments in other parts of the country. These developments will improve connectivity in the UK and push amenity-led projects to improve resident, commercial and mixed-use spaces.
The regional cities are by far the best place to start a new real-estate business. Invest your money into a run-down property, spruce it up and make a significant profit in 2021. 18% of adults already have firm plans to start a business in 2021, will you be one of them?