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The Property Podcast

TPP340: Strategy September - Flips

The Property Podcast

Rob Bence & Rob Dix

News, Investing, Education, Business, Business News

4.82K Ratings

🗓️ 19 September 2019

⏱️ 23 minutes

🧾️ Download transcript

Summary

It’s the penultimate episode of Strategy September and this week Rob & Rob are covering flips. Now flipping is probably the most glamorous property strategy there is. There are dozens of TV shows you can watch and it’s a good way to make a decent profit quickly.  However, there are a number of risks involved that you should consider and The Robs are going to cover them in today’s episode along with: How much capital will you need? What are your finance options? Where do you want to be looking? How do you do your numbers? How do you work out your refurb cost? What other expenses do you need to allow for?  How do you know what you’re going to sell for?  So before you rush into flipping properties, thinking it’s as easy as it looks on Homes Under the Hammer, you might want to give this episode a listen first. And, after you’ve given it a listen, make sure you go and take our free course over on Property Hub University and really test out your knowledge on flipping properties.    And in the news this week, we’ve got (another) negative headline. Apparently property investors make on average just £2,000 net return each year after ‘hidden costs’ are taken out. Now considering an average property is £183,000, that kind of profit seems hardly worth it.  So we might as well all give up and pack it in.  Or should we? Luckily, in the article they’ve listed these different hidden fees so we can see where they’ve got their figures from. We’re not quite sure where they’ve plucked them from, especially on an average priced property, but nevertheless, we think you’re pretty safe for the time being.   And to give you that extra bit of value, this week’s Hub Extra is another fitness site called Nano Workout. Now this might seem like a bit of a prank because when you think about it, it is actually quite funny. But this site has come up with different exercises that you can incorporate into your everyday life.  So there’s things you can be doing while you’re sitting at traffic lights, sat at your desk, and even ones you can do whilst you’re sat on the couch watching TV. If this sounds like something that could help you get into fitness, let us know what you think of it.   We’d love to hear what you think of this week’s Property Podcast over on Facebook, Twitter or Instagram. You might even have a topic you’d like us to cover in the future - if so, pop us a message on social and we’ll see what we can do. Make sure you’ve liked and subscribed to our YouTube channel where we upload new content every week! If that wasn’t enough, you can also join our friendly property community on the Property Hub forum. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Flipping Property.

0:04.0

No, I'm not fed up a property. It's actually a strategy.

0:07.0

This week on the Property Podcast, Rob and I push on with Strategy September,

0:11.0

and this week we're covering flips.

0:13.0

Welcome to the Property Podcast,

0:19.0

where every Thursday morning property investors come together to be informed and inspired.

0:25.4

Flips is probably the most glamorous property strategy that is. It's a subject of countless TV shows and you can

0:31.1

make lots of money in a very short period of time. So probably

0:34.7

something you'll want to consider but lots of risks to be aware of as well. So we're

0:39.4

going to help you pick your way through all of that in this episode and stick around to the end where we've got a

0:43.6

resource that will guide you towards the easiest workout of your life.

0:48.4

So Rob we have another negative headline for property investors and landlords because unfortunately it's been revealed how little we make and

0:57.9

Apparently according to a prop tech company

1:01.6

Property investors make on our face just over 2,000 pounds net return each year after hidden costs are taken into account.

1:10.0

So it's not a lot for average property, when you consider an average is 183,000.

1:16.0

Should we pack up? Do something else?

1:18.0

Well, maybe we should if those are the returns that we're getting because that's a ROI of little over 1% which is not fantastic.

1:26.4

But as we often find with news stories Rob the reality can be a little different

1:30.9

and conveniently they've itemized all the different costs and where they've

1:34.4

taken their numbers from so we can see how they've got to this claim.

1:37.6

Yeah now I can't believe this for the press release it seems they've been a bit

1:41.8

juicy with their numbers which has caused a

...

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