Real estate is a very competitive industry. So if you want to remain ahead of the competition, and make a high return on your investment for your fix and flip business, these are the trends to look out for in 2019.
1. Natural Materials
Nowadays, natural materials appear to be impressing homeowners due to an increase in environmental awareness. Buyers are starting to deem their homes as an asset to combat global warming. Therefore, the days when homeowners sought an industrial, modern home design full of metals, have passed. Natural materials like cotton and wool fabrics are now in the minds of the buyers and are impacting styles of design. Hence, fix and flip investors should focus on green real estate investing.
In addition to using natural materials, investors should target properties with features that are environmentally friendly. Therefore, fix and flip investors will be able to access a new market of real estate buyers.
2. Watch Commercial Real Estate Trends
Even though fix and flip investors do not normally focus on commercial real estate, it is a trend to keep in mind in 2019.
The movement by big corporations to scale up to new regions via commercial real estate will create a need for homes by their workforce. Fix and Flip investors can leverage this opportunity by focusing on properties that support a workforce that is moving.
3. Smaller Sized Homes
In 2018, first time home buyers, who are millennials, have shown a willingness to buy small homes. This trend will continue even in 2019. But these homes could be made more luxurious as millennials become more willing to spend in purchasing homes. Fixing a small home and making it more luxurious can make you more money as a fix and flip investor.
4. A Shift in Rates and Prices
The construction industry remains behind the demand for housing. Due to limited supply, there are high prices for houses. Also, the economy is getting stronger, and this has resulted in increased interest rates. Therefore, timing the right buy before prices can rise could result in significant profits.
Perform your due diligence as you keep these trends in rates and prices in mind. The continued increase in prices in 2019 will result in a benefit for your fix and flip business.
5. More Technology
The real estate industry has become extremely dependent on technology. For instance, apps and sites such as Trulia and Zillow have changed the home search process for hundreds of millions of buyers. Zillow gets an average of 160 million visits per month, and the company has started to buy its houses.
Fix and flip investors can leverage these sites and apps to increase the turnover of their houses. This trend will continue to be prevalent as technology changes in the real estate sector, particularly in the artificial intelligence area.
6. Opportunities in the Suburbs
One of the best places to begin a business for flipping houses is the suburban neighborhoods. Here, investors will get favorable opportunities. It might prove difficult to get a property for flipping in a market that is tight. But suburbs are full of profitable properties that have potential to be fixed and flipped for high profits.
Additionally, experts state that fix and flip investors need to begin looking into new neighborhoods. It is good to remember that you can fix and flip a property, but you cannot do that for the whole neighborhood by yourself. Keep this in mind as you look for a neighborhood where you want to invest in a property.
When carrying out your house flipping business, resist the temptation of buying cheap houses in neighborhoods of low-income. The number of foreclosures and the high rate of crime will reduce the value of your property, making it hard for you to resell.
Carry out your business in upcoming suburban neighborhoods close to school districts with a low crime rate and employment growth. These factors make sure that your flipped property offers great returns.
7. Quartz Countertops
One thing to know about real estate is that bathrooms and kitchens sell homes. Therefore, using quality countertops in these spaces is an emerging fix and flip trend that will aid you in re-selling your house in 2019.
Stone countertops will remain to be a trend for a long time, but home buyers are now migrating from granite countertops toward quartz ones. Quartz is a material that is semi human-made that costs the same as granite and sometimes less. It lets you develop a design that is personalized and clean.
Using granite might consume your time as you look for the ideal piece to complement the design of the space. You might also end up centering the whole design around the stone’s pattern. But since quartz is human-made, it has various styles and colors that can suit the design of your choice. Quartz is also easy to maintain since it fails to require periodic resealing needed by granite, and you don’t require worrying about oil or acid stains.
8. Smart Homes
Adding smart home features to your home is a perfect way to put your home at the top of the home buyer’s list. Installing smart garage door openers, security doorbells, and smart thermostats will only cost you $200 each and are easy to set up.
They will impress the buyer of your home, and they will be more willing to spend more on your home than in a home without smart technology. Some neighborhoods consider smart thermostats as a standard for home design. Hence, be sure to offer these upgrades.
Surprisingly, wallpapers are coming back. When flipping a home, you want to ensure you don’t impose your personal preferences regarding design on potential buyers. Hence, avoid robust, bold prints and use lovely textured wallpapers to add class and dimension to a simple room.
Contact Orchard Funding Today
Whether it’s the use of natural materials or wallpapers, all these trends will ensure that you make a high return on investment in 2019. Call Orchard Funding at (310) 356-7373 today and get funding for your fix and flip business.