New build properties are newly constructed homes that have never been lived in before. Have you ever watched a condo being built? Once that building is finished, all those units would be considered new build properties. The same thing when new subdivisions are plotted out and built up by developers. Before the houses are actually built they are called pre-construction properties, but once complete, they then become known as new build properties.

As an investment property, flipping new build properties in Ontario can be a lucrative opportunity over traditional resale homes when the conditions are right.

When flipping resale homes you have to work with what you have, renovating where needed, and there may be existing structural problems due to age or disrepair that could come up unexpectedly during the work.

With new build properties you’ve got oversight and some decision making power over the layout and floor plan so that you can have a property that is tailored to the demographic you want to sell to right out of the gate.

New build properties can also be attractive to many home buyers over traditional resale homes, especially if the property is in a an area that is already experiencing a surge of development areas.

With all investment ventures, it is important to remember to approach it as a business, and the most successful businesses are the ones with a clear business plan and a pre-defined budget that are designed to keep your bottom line profitable.

Your business plan for flipping new build properties in Ontario should start with detailed research into who your potential buyers are going to be. You are going to want to cater to the masses in order to sell in a timely fashion. Is the area one that is mostly young families or is it a retirement community? Your key demographic should be the influence for everything from floor plan to installation features.

When creating a budget overview for flipping new build properties in Ontario here are three insights:

• Know where to focus
• Know what to reserve
• Know how to make your money work harder

Knowing where to focus the majority of your budget is the way to get the quickest return on your investment. Again, making sure you are aware of, and tailoring to the key demographic of buyers in your area. Focus your budget on a floor plan and features that are proven selling features for the majority of buyer sand you can rest assured knowing you are spending in the right place.

Knowing what part of your budget to hold back as a reserve for any unforeseen obstacles during your build, or in the event of the home is taking a little longer to sell than anticipated. It is recommended to look at your total budget, determine what 15% of that is, and then add that amount to your total budget as an emergency fund.

Knowing how to make your money work harder is a great way to stretch your budget and ensure your reserve budget stays untouched unless it’s absolutely needed. With new build properties, you can check to see if the builder or developer offers any incentives and discounts. These are common offerings like free upgrades when you elect to build in a certain timeframe, or discounts based on location of the build.

Another way to make your money work harder is to shop smart. Shop2Save is an online consumer shopping site that not only offers discounted volume buying to its members, but also real cashback rewards dollars for shopping for professional services. Professional services like real estate and mortgage specialists, which are essential to the successful flipping of new build properties in Ontario. Visit Shop2Save today to see how free membership can increase your profit in your investment property.