- Flipping House has gained great popularity in Mexico, hence it is expected that in the future 30% of homes will be included in this business.
- Becoming a recognized house flipper in the real estate sector will bring greater economic benefits to your life.
Investing in real estate includes more than just buying a house or apartment and holding it as an asset in your portfolio, as there are different ways to profit by allocating your money to a property. One of them is by flipping houses, so if you are starting in the world of real estate business, at Coldwell Banker Mexico we invite you to keep reading, in order to learn more about it and consider this model as an investment option.
What is Flipping House?
It is a trend that has gained importance in Mexico, which consists of buying a property at a low price, then remodeling it and selling it at a higher and considerable cost, with the expectation of increasing its value in the future. For this reason, various investor profiles have managed to make their way into this real estate concept.
But, although relatively new in the country, flipping houses started at the end of the last decade with a small portion of investors, and nowadays, this practice has diversified into different sectors and areas. For example, real estate agencies, who noticed the profitability of the trend, as well as streaming platforms, which show content about the steps and guides to remodel a property and thus attract more audience interested in the topic.
Is it profitable in Mexico?
After the 2017 earthquake, many companies implemented initiatives offering to remodel properties, mainly those damaged by the disaster. However, these are not the only homes that require work, as according to a study by the National Institute of Statistics and Geography (INEGI) and the Federal Mortgage Society, most households in Mexico have remodeling potential.
Additionally, according to the study’s data, in 2020 there were 35.3 million inhabited private properties across the country, of which 58.5% need some improvement due to structural problems, such as water leaks or humidity, with Chiapas, Guerrero, Tabasco, and Oaxaca being the areas with the highest remodeling index; and between 70% and 80% of homes in these places require it.
On the other hand, the Mexican Association of Remodeling and Improvement Specialists considers that by the end of this decade, homes may show signs of deterioration, so it is necessary to start a remodeling project as soon as possible. Furthermore, it expects that by 2030, 30% of homes in Mexico will be remodeled.
How to get started in Flipping House?
To venture into this investment model and succeed, you must be very cautious and informed about real estate matters. That way, you can conduct an acquisition analysis that includes considering areas of appreciation, market trends, and investment risks.
Keep in mind that Flipping House has gained great momentum in the real estate sector in Mexico, as well as favorable future projections, as it represents a high percentage of profits. Therefore, do not forget these key tips: create a comprehensive expense scheme, explore various options, analyze the type of land of the property, consult with experts, and consider the investment timeline.
So, if you want to take a step forward in this trend, and it is the first time you will invest in real estate, always remember to approach serious platforms that have a wide catalog of properties, so that you can ensure the fruits of your investment.
Fuentes de consulta:
https://www.lamudi.com.mx/journal/house-flipping
https://www.icasas.mx/noticias/flipping-houses-inversion-inmobiliaria
https://www.lahaus.mx/blog/tendencias-del-mercado/house-flipping-invertir-mexico
