While the rest of the UK property market has struggled with growth, Lancashire has bucked the trend. The area is amid a housing shortage but contains several major cities and conurbations that are experiencing growth. Below, we give our tips for Lancashire fixing and flipping entrepreneurs in the current climate.
Research Your Locations
Not all areas are experiencing growth, so you need to do your research. West Lancashire, between Preston and Liverpool, has seen the most rapid growth in house prices. One key factor that has spurred this on is its proximity to two large cities. If you can locate properties in these types of locations then demand for housing may be more likely to follow.
While the property market may be a little quiet, there are still options for quick sales should you need the capital to buy elsewhere. You can always lower the price, which will make sure that you still make enough profit on a property after tax. It’s also possible to look for online estate agents who may have lower margins or even bigger networks to help get the property shifted quickly.
Know How Much Homes Are Selling For
Once you have identified a location, you need to see how much homes are selling for. This is to ensure you can make a profit when the time comes to sell. You should also research a few different types of properties. For example, small apartments may be selling quicker than four-bedroom houses. Even if you see something in the right location that is not in demand, it will be harder to flip quickly.
It’s also important to check the average amount of time homes are on the market. If you buy a place that stands vacant for four months while you sell, it is wasted money.
Don’t overlook the standard factors that should influence the property you buy either. Is it close to schools, amenities, and transport links? What is the crime rate in the area? Even if a location is experiencing growth and demand, negative factors like this can be a key indicator that it may be short-lived.
Don’t Overlook Rentals
With rapid growth in these locations, you shouldn’t overlook the value of patience. While your model may be to fix up and sell on, these high levels of growth will reap more rewards if you hold for longer. Rentals are also in high demand in many areas, so you can enjoy a strong yield while earning from appreciation. If you do have trouble selling once you have done up a property, don’t be frustrated.
Other areas to potentially look at include Fylde and Blackburn, which have all experienced massive growth. Yet Lancashire is not the only UK area showing promise. If you want to spread your wings, the East Midlands, and East Lothian in Scotland are also carrying on with this. You may find even more profit here. By following the same hints in this article, you are sure to find something that suits you.
