The rising cost of living is hitting Brits hard, and many are looking for ways to bring in a little extra cash. Some are negotiating higher salaries, and some are throwing in the towel on the corporate world and launching their own start-ups. Side hustles have become a popular route to boosting your bank balance, as they allow you to keep earning your usual salary while gaining an additional income.
If you’re looking for an exciting side hustle, you might be considering flipping houses. However, there’s a lot you’ll need to think about before you don your overalls and get stuck into your first project. From taxes to timelines, in this article, we explore what you need to know when flipping houses as a side hustle.
Knowledge about Flipping Houses as a Side Hustle
Work with the right people
Buying, renovating, and selling a home single-handled will be a near impossible task, so you’ll need to source professionals to ease some of the burdens. Outsourcing certain jobs such as landscaping, roofing, and wiring will save you time and energy, and will also ensure the work is carried out effectively.
Professional tradespeople will be aware of any health and safety standards that must be adhered to when carrying out repairs or construction. Failing to meet these standards could make the sale of your property difficult, so hiring help will be a worthwhile investment.
When flipping a property, you’ll need to be familiar with taxes. If you’ve set up a limited company for buy-to-let and you’re using this for your property flipping, you’ll pay corporation tax. However, if you don’t have a company registered, you’ll pay income tax as an individual.
HMRC doesn’t recognize property flipping as an investment, so you won’t have to pay capital gains tax.
Tools and equipment
While you’ll have professional tradespeople doing some of the repairs and construction work on your property, there’ll also be simple handy jobs that you can complete yourself. To ensure you carry out any work safely and accurately, you’ll need to invest in some good quality tools.
Ensure you have a toolbox with all the essentials including a couple of good drill bit sets.
Don’t let that home renovation shows fool you; flipping a house won’t happen in a matter of weeks. Set realistic deadlines for yourself and your team and remember to factor in extra time for the inevitable moments where something doesn’t go to plan.
You may want to set yourself a goal for each week or each month, but keep in mind that flipping a house isn’t a feat without obstacles, so don’t beat yourself up if things get off track.