When people think about flipping property, it’s usually houses and townhouses. Renovating to sell can be quite fun and very lucrative once you get the formula right, though between houses and apartments, houses can hold a lot more financial risk.
Now don’t get me wrong, anyone can overcapitalise and lose money when renovating anything, so you need to take care at your initial purchase and from there on out. The reason why apartments are a great choice, especially for the beginner, is because you are usually limited to what you can do. In most cases, you cannot do much structurally, which means most of the renovating is cosmetic. This can save a lot of money not only in builders and materials, but in architects, engineers and plans and permits with councils.
Apartments are an easy formula to work out as well. If you were to buy an apartment at ten thousand dollars per square and you spend five thousand per square renovating, then the aim would be to sell at twenty to twenty-five thousand dollars per square. You can keep it really simple, make it look great and your buyer will fall in love.
In my experience, I have found that those who choose to renovate apartments undergo a much more stress-free process, finish the job quicker and don’t have those added surprises you get when you start pulling apart an old house. I would just suggest to keep an open mind next time you go out looking at your next project.