The new era of globalization we live in has brought many changes, and the adoption of English terms for something that was quite common in Portuguese, just to make it sound more posh or hipster, was one of them. So… let’s get to know House Flipping, or as you’re probably already tired of hearing, Remodeling and Reselling.
Real estate has always been one of the most profitable economic sectors, and consequently, all activities related to the sector, such as construction and its derivatives.
With the bankruptcy of many companies in the sector during the subprime crisis, and the emerging trend of entrepreneurship, the illusion was created that anyone could make a fortune if they found a real bargain, “remodeled” it with 10,000€ – i.e., painting with “well-diluted” paint, changing handles, and laying flooring that only allows you to walk barefoot – and resell it for 100,000€ more. And if it were really like that, who wouldn’t want to?!
“With the bankruptcy of many companies in the sector during the subprime crisis, and the emerging trend of entrepreneurship, the illusion was created that anyone could make a fortune if they found a real bargain.”
But everything comes at a cost… these renovations by the curious have flooded the real estate market with properties that have dubious structural modifications, as well as technical installations and finishes, all chosen based on cost and the “technical” opinion of those selling the products, without ever considering that there are technical standards and checks that must be met and ensured by those who are truly responsible and qualified to do so.
Architects, project engineers, rehabilitation specialists, etc., a countless number of experts who can and should be consulted when planning interventions, long before the work is carried out, not afterward as a patch-up, as is commonly done.
With this, I don’t mean to say that the market doesn’t have room for renovation and reselling entrepreneurs, quite the opposite – there is space for them – but, as in any activity, they should prioritize educating themselves, studying, and utilizing the existing resources and experts before doing something that not only lacks quality, offering only appearance, but could also compromise the safety of those who buy it.
