Have you ever visited a booming tourist town and stayed in a vacation rental? If you’ve ever paid for one of these conveniently located, beautifully decorated homes, you’ve probably asked yourself, who owns these and how much profit are they making?
It’s no surprise to discover that someone other than the owner cleans these rentals between each guest, so you can imagine that the owner is probably not involved at all. In fact, they are usually not even involved in the rental process! There are various companies in each tourist hotspot that manage hundreds and thousands of rentals.
Rentals aren’t the only way to make money off a land asset. Many people make a living flipping houses! In other words, they buy cheap and sell high to make a profit. They may or may not have to touch up the real estate, but most people just sit on the property until the housing economy goes up in that area! For this reason, many people choose to buy property in a growing tourist town, because they know as people visit, they will want to purchase land.
There are three important things you need to know about flipping homes: choosing your new “hometown,” understanding the housing economy, and conveyancing.
Choosing Your New “Hometown”
You know, a town where a home is? It doesn’t necessarily mean you have to live there and make it your “home,” although it might be a great vacation escape!
When it comes to choosing the right place to flip homes, the popularity needs to be considered. Above, tourist locations are mentioned, but let’s not limit ourselves there. Towns that are increasing in popularity can also be because of job opportunity, new laws and regulations, etc. Just a few years back, middle to western Colorado saw a huge boom in population, and why? Colorado has always been beautiful, affordable, and offered many activities. But in 2012, Colorado legalized the use of recreational marijuana.
After the legalization went into effect, the population increased eight percent in that year. It’s been growing ever since! If you are able to still locate a cheap deal for property or land in Colorado, the steady increase reveals that you won’t be let down.
Looking at the population increases in cities and states is one of the best tell-tale signs of your best move. Another indicator is the housing economy.
Understanding the Housing Economy
Before you pick your perfect location, you really need to distinguish if it is “perfect.” The best way to do that is looking at some of the key indicators of the housing market in a handful of cities you are interested in to determine which is the most profitable.
A quick Google search will reveal things like the current prices of homes for sale, mortgage rates, as well as the pace and direction of other home investments. You might compare these results to your current home bills and the houses in your city to understand what they mean for you.
Remember, flipping houses might require you to sit on property for some time. Unless you are able to rent it out in the meantime, be sure you are confident in your ability to afford your investments.
When you do reach the point of selling your investments for profit, you will want to look into professional conveyancing services.
Conveyors assist with the documentation for property transfers. Unless you are trained in this area of expertise, it’s really important to utilize this resource. You might also find that it makes your new job in real estate much easier.
These are really just minimal steps for your new pursuits working from home. As you endure the process, you will notice there is more that goes into it that will assist you in making the perfect decision(s) that leave you feeling fulfilled and empowered!