House Flipping Secrets from Costa Blanca estate agents

If you love house-flipping shows on Netflix you will love this article. The Euro Weekly News sat down with the best real estate agents on the Costa Blanca to get insider knowledge on house flipping on the sunny Spanish coastline.

We dive into topics like the best areas and types of properties to flip and approximately how much profit you can make from this type of real estate investment.

House flipping isn’t just a business for some; it’s a true passion that transforms old, abandoned properties into vibrant homes. For some property experts, the joy lies in witnessing an apartment or villa, once sad and neglected, come to life again and find new owners eager to embrace the charm of a restored property.

Top Tip: Invest wisely by seeking affordable options, but remain vigilant—don’t be misled by low prices alone. Ensure the locality meets your standards, as this crucial step is where profitability truly takes shape.

What are the Best Areas for house flipping on the Costa Blanca?

In the world of house flipping on the Costa Blanca, Alicante takes centre stage. Alicante offers a good mix of city living and beach proximity. There’s a good range of properties available, from apartments to villas, and the city has a well-developed infrastructure with good transport links with Alicante Airport nearby.

Another good option is Torrevieja, a popular tourist resort, Torrevieja has a large expat community and plenty of amenities. There’s a good selection of properties for sale, and the beaches are some of the best on the Costa Blanca. However, property prices tend to be on the higher side here.

Javea, Denia, and Altea are some beautiful old towns with a more relaxed atmosphere. Property prices here are a little higher than in some other Costa Blanca resorts, but there’s still good potential for finding a bargain and may present attractive flipping options with spacious plots and stunning views.

A local estate agent Ibero Homes also provided us with some up and coming locations and areas where they would recommend for house flipping on the Costa Blanca: Rocio del Mar, La Veleta, Las Ramblas, Campoamor Golf, Rio Mar, and Orihuela Costa.

Top Tip: Find a reputable contractor and establish a thorough contract. A good constructor is the key to keeping the project on schedule.

What are the Most Popular Types of Properties to Flip?

The choice of property plays a crucial role in successful house flipping. For apartments, the ideal candidate would be a unit with a terrace and sea view, ideally south-facing and within walking distance of the beach and amenities. If the community also provides parking and a pool, it becomes an irresistible offer.

In the villa category, properties with a pool and sea view (or open views to mountains or golf courses), a well-maintained garden ensuring privacy, and a garage stand out. A single-level layout adds to the appeal, making the property more attractive to potential buyers.

Top Tip: Invest thoughtfully in your renovation, considering both style and materials. The ultimate goal is to enhance the property’s value for a lucrative resale. Discerning buyers will not appreciate a hasty or frugal renovation. Therefore, approach decision-making as if the project were for your personal use while maintaining a tastefully neutral style to appeal to a broader audience.

What are the Pros of House Flipping?

Profit Potential: Successful flips can yield substantial profits, especially in sought-after areas like Alicante City.

Creative Expression: House flipping allows for creative expression in design and decor, turning a neglected property into a work of art.

Property Value Increase: Renovations can significantly increase the value of a property, providing a substantial return on investment.

Job Creation: House flipping contributes to the local economy by creating jobs for contractors, designers, and other professionals.

Top Tip: Engage in effective communication with your real estate agent from the project’s inception, valuing their expertise in discerning market trends and buyer preferences. The choice of a skilled agent is pivotal in successfully marketing and selling your property. Select a reputable agent with a keen understanding of the market to optimise the potential of your flip.

Our recommendation:

Ibero Homes

Ibero Homes is a dynamic and professional real estate agency specialising in the Torrevieja and Orihuela Costa regions, exclusively tailored to the international market. With agents strategically positioned in various countries, their focus encompasses a wide range of properties, including second-hand homes, new developments, real estate investment products, and rental properties. Ibero Homes distinguishes itself with an unwavering commitment to excellent service, a high conversion rate, and the ability to facilitate swift sales.

Ibero Homes provides comprehensive real estate solutions, covering a diverse geographical area that includes La Mata, Torrevieja, and Orihuela Costa (Playa Flamenca, La Zenia, Punta Prima, Cabo Roig, Agua Marina, La Regia, Lomas de Cabo Roig, Campoamor, Villamartín, Rocio del Mar, Los Dolses, Los Altos, La Florida).

Ibero Homes boasts an extensive property portfolio, featuring new developments, second-hand residences such as sea-view apartments, luxury villas, bungalows, and duplexes with plots. The agency caters to both buyers and tenants, offering long-term rentals and holiday rentals in Orihuela Costa.

For those considering selling their property in Orihuela Costa or Torrevieja, Ibero Homes is positioned as the go-to real estate agency. The agency offers free property appraisals and presents professional business plans to facilitate quick property sales.

Leveraging their commercial network of agents both nationally and internationally, including in France, Norway, Belgium, and Russia, Ibero Homes effectively connects sellers with potential buyers interested in Costa Blanca homes.

Contact Ibero Homes today!

Website: Click here

Email:juanmico@iberohomes.com

Telephone:0034 609681505

Office: 0034 965320610

Address: Avenida de las Adelfas 18 Bajo, 03189 Orihuela Costa

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What are the Cons of House Flipping?

Financial Risk: Flipping involves a considerable financial investment, and market uncertainties can impact profit margins.

Time-Consuming: Renovations often take longer than anticipated, leading to potential delays in selling the property.

Market Fluctuations: The real estate market can be unpredictable, affecting the demand for flipped properties.

Unexpected Costs: Unforeseen issues during renovations, such as structural problems, can lead to additional expenses.

Is Flipping Houses Profitable?

Unfortunately, there’s no one-size-fits-all answer to the average return on flipping a house on the Costa Blanca.  While house flipping can be profitable, it also involves  risks and can be very dependent on several factors:

Location: As mentioned previously, popular tourist areas may have higher potential profit margins, but also higher purchase prices.

Property condition: Buying a property that needs extensive renovation will obviously eat into your profits.

Renovation costs: Accurately estimating renovation costs is crucial. Underestimate and you could lose money.

Market conditions: A hot seller’s market will allow you to sell quickly and potentially for a higher price. A buyer’s market could mean a longer wait to sell and potentially lower profits.

Your expertise: Experience in renovation, negotiation, and the local market can significantly impact your success.

While there isn’t a definitive average return, some resources suggest that the average return on property investment in Spain is around 8 per cent. However, house flipping aims for a quicker turnaround and a potentially higher profit compared to long-term rentals. Working with reputable real estate agents on the Costa Blanca will help improve the investment potential.

Top Tip: Present the property with tasteful furnishings, this will enhance its visual appeal but also highlight its immediate readiness for occupancy, a quality highly valued by potential buyers, thereby optimising its value.

How to Start Flipping Houses?

House flipping on the Costa Blanca involves a strategic and well-informed approach. Aspiring individuals should begin by educating themselves on the intricacies of the local real estate market, and understanding popular areas, property values, and relevant regulations.

Defining clear financial goals and assembling a proficient team, including real estate agents, contractors, and legal advisors, is crucial. Financial preparation, assessing potential properties, and creating a detailed budget are fundamental steps. Thorough research on target areas, property evaluations, and renovation planning comes next.

Obtaining necessary permits and overseeing the renovation process are critical aspects, followed by effective property marketing in collaboration with real estate professionals.

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