A popular strategy in the US and UK, it has recently become more prevalent in other European countries as well. The so-called flipping represents the activity of buying a property with the objective of selling it quickly at a higher price, thus realizing a capital gain able to compensate the investor for his use of time and capital. In fact, it is an example of property development on a small scale.
An increase in value can be generated in various ways:
mproving the quality of the property overall and thus its desirability. Many purchasers of property are unable to see or have no desire to undertake large refurbishments of these properties. Often opportunities of this type are sold at a discount higher than the mere cost of renovation, both because they require a lot of time and energy, and because generally properties of this type are attractive only for a specific set of buyers. For an investor it is important to keep in mind that the objective is not to create a dream house but to concentrate eforts on the interventions with the greatest potential for increasing the perceived value of the final purchaser, who very often will live there.
2) PURCHASE BELOW MARKET VALUE
Typically achieved through of market opportunities, which require a strong local presence. Other possibilities are represented by auctions or by particular administrative agreements such as lease options.
3) INTERNAL REORGANIZATION
For example increasing the number of bedrooms or extending a property can help to increase its value.
4) CHANGE OF USE
For example converting an ofce block into residential accommodation.
Why it works?
People move an average of 11 times during their lives and the needs related to housing are constantly changing. For each relocation it is necessary to find a property, preferably already configured as desired.
ELVinvest also allows access to investment opportunities beyond the reach of the individual investor, thus allowing the optimisation of the entire process in its two phases.
Why with Elvinvest?
Flips are an interesting strategy, provided you know what you are doing otherwise you risk wasting both time and money. The experience accumulated allows ELVinvest to identify the best opportunities on global markets, determining the most efective strategy and taking charge of the professional execution with the best cost / benefit ratio.