It’s not yet spring and the market in the Hamilton area is keeping pace with recent seasons i.e. we’re hot, multiple offers abound—our last several offers have been in competition, it’s mid-January! Burlington, with its crown of #1 mid-sized city in which to live, is always solid, and, for my Toronto friends, you know your market sizzles, always.
This isn’t just a market update here, we’re talking about fixer upper properties—if that’s on your radar, Hamilton has such an array of potentially fine old homes just waiting for some attention. We currently have clients who are looking at a first buy and fancy a character fixer upper they can make their own; we have clients who see the solid upward movement in the market here and want to invest in ‘new Hamilton’ in the form of a rental property; and there are others who see potential in taking on a property needing some 2015 attitude and then flipping.
Given we here at core have extensive experience in renovating and flipping we thought for the next couple of posts we’d dig into house flips and offer up some tips if you’re feeling inspired to dive into your own. Flipping can be lucrative with an educated approach but there are considerations:
Burlington holds great appeal for home buyers—it’s a fantastic waterfront city with beautiful neighbourhoods, a bustling downtown, all the conveniences of urban life while being surrounded by natural beauty and an easy GO Train commute into Toronto. Burlington is a destination city, oftentimes these are homebuyers with the finances but not the time to do the job. These homeowners quite often prefer that someone else complete the home for them so it’s move-in ready, and, they are willing to pay for that convenience.
Hamilton is a city in quick transition. It has a large number of potentially fine old homes in established neighbourhoods that have aged with little attention to upgrades; now these homes are ready for new owners to transform, to bring a fresh 2015 perspective. Hamilton is hot, it’s proven in recent years to be the target of Toronto area home buyers looking for space and value, first timers and investors looking to add a rental property to a real estate portfolio; whatever the case Hamilton has consistently rated one of the hottest and most solid real estate markets in the country. And it’s a prime candidate for the flipper.
1 Find out how much capital you have to get started. If you’re getting a mortgage be prepared, there are different rules when purchasing a secondary property and if you’re flipping a bank may or may not want to finance it for you. Short term lending=not much interest for them.
2 Be sure to find the right realtor to help you with the process, this is key. If they’ve gone through this process they will know what to look for as far as areas to focus on and the right style of property to buy. You might think it’s all about the house but keep in mind that lot, location and amenities can make a big difference. You need to know your target market on the selling end.
3 If you’re aware of what you can expect to sell the property for at the end of the project it will determine how much you’ll be investing into the renovation. You may as well maximize your return right? Plan ahead, and, know your market.
Stay tuned to our upcoming posts for more tips; we’ll highlight some of our Before & Afters too!
Attic space? You can carve out additional living space and highlight charming character elements like the crossbeams in this conversion.
Contemporary fireplace update—better!