Before I get any unhappy comments about the profanity in my headline I should tell you that this week I’m talking about flipping properties for profit. i.e. Buying, refurbishing (or not) and re-selling and making some money in the process.
Hang on a minute I hear you saying. This guy’s a Letting Agent who’s job is to Let or Manage property in Watford for landlords. What does he know about refurbs? As you know I speak to a lot of landlords about where to invest, what to invest in and why and the answer are different for everyone but a common question I get asked about is flipping property and can it be done in Watford, Bushey or Rickmansworth. My answer is “Yes it can,” but don’t take my word for it, let’s look at the figures taken from which speak for themselves.
If you were the savvy investor that bought your property on St Marys’ Rd – West Watford on 23rd August 2013 for £207,000 sold for £280,500 in October last year then you’d probably be pretty smug about the 35.51% increase in value or the £73,500 profit that you made in the last 14 months!
Or perhaps if you thought Rickmansworth was the place to buy and you bought in Eastwick Crescent – Mill End for £375,000 in Sept 2013 and sold again for £520,000 in November 2014 making you a cool gross profit of £145,000 you’d agree with my “Yes it can” comment.
In Bushey Heath one lucky punter bought in St Peters Close in July 2013 for £249,950 and then sold again for £319,950 in October 2014. An increase of 28 percent and a gross profit of £70,000. This is a tidy little profit when putting your hard earned cash into an investment for just over a year.
So yes there is money to be made and these are some of the success stories.  I don’t know how much money was spent to add value if any was added at all but I suspect these houses were worked on, brought up to a very nice standard and then sold again for not quite the gross profit mentioned above but still earning the clever or lucky individuals a good return.
The professionals say you make the money when you buy not when you sell.  Can you find good deals for a quick profit in the current market?  I’d say it’s harder than ever. But with the rapid increase in price over the last 2 years anyone could have made money whether you bought well or not.
If you’re in this game for the quick buck then exercise caution as economists are disseminating different messages about growth this year.  If you are in this for the long term then there are plenty of good deals out there which provide a good rental yield against the purchase price.
As always if you’d like my opinion on an investment you are considering then please get in touch with me on 01923 375 300 or email
I don’t bite, I don’t do hard sell, I don’t ask for anything in return for my time and opinion. I simply enjoy discussing this stuff with my investors who more often than not do come back to use Caley & Co as their letting agent when they’ve completed on their purchase.
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