Home Improvements and Turning Houses
There are plenty of people out there that enjoy wheeling and dealing in the real estate market. These people like to buy houses, keep up on to them for a small amount of time, and then sell them to turn a profit. This sounds like a great idea and it is but you have to be savvy and really research. This can be quite lucrative but it can also be a disaster. The keys are often timing and location but you can also turn a profit by buying a home that needs major renovation and fixing it up.
Why is timing and location important? Well, let’s look at two interesting examples. A few years ago, though the hot desert town of Phoenix, Arizona was growing, it was moving at a reasonable speed. Then about 5 years later…expansion! Everyone seemed to be moving into Phoenix from Northern states and California. So the market skyrocketed. A one thousand six hundred square foot townhouse that was purchased for just over one hundred thousand dollars just a few years before was now worth twice that. That is a handsome profit. Now, things seemed to be moving along nicely and everyone was making money but there is a limit. At the moment, in Phoenix, people who purchased there home at the expansion time wouldn’t be able to get back what they bought the house for just a year earlier.
The ability to stick it out a little longer is advantageous in this scenario. This is why timing is important. The Housing market can only take a expansion for so long, already in places where everyone wants to live. Our second example is San Diego. A few years ago, though housing was expensive, it was a lot less than it is currently. So people selling a little later could nevertheless make a profit and during certain times, turn over can be quick. However, again, people will only go so far and are only willing to pay so much. Some friends of mine were trying to sell their house just as the expansion was turning downward and found that they weren’t able to get asking price so they had to lower and are nevertheless waiting. You never know when the turn will happen until it already has. Experts argue that places like New York City and San Francisco will always be booming but there is timing involved in those locations too.
The next way to turn a profit in almost any city is buying a home improvement challenge. This involves a lot of start up cash. Any home improvements add value to a home, but some add more than others. Careful when selecting a home improvement contractor for larger projects and always look for quality products at good savings for smaller projects. Buying wholesale is best if you can. Anything you do from kitchen remodeling, to sun room additions, to fireplace remodels will help you get top dollar. Be sure to research the market and the location thoroughly and don’t over use.
These types of investments can be challenging, exciting, and lucrative if you know what you are doing. Be sure to always research and talk to others attempting similar projects if you are new. Good luck.