According to reports, Ellen DeGeneres and Portia de Rossi have packed their bags and gone to the United Kingdom, with no plans to return to the United States. However, they may have to give up one of their favorite pastimes in the process.
Comedian and former talk show host DeGeneres and retired actress de Rossi have long been well-known for their house-flipping habit, which involves purchasing eight-figure mansions in Southern California and then selling them for a profit, often in as little as a few months. According to TheWrap, they still own a number of properties there, including their main home in Montecito, which they intend to list shortly.
According to TheWrap, the couple purchased a house in the affluent Cotswolds area of England with no intention of returning to the United States following Donald Trump’s election.
However, it won’t be as simple to continue house flipping in the UK, particularly in rural areas, as it has been in the US, particularly in the ultra-luxury market.
According to Harry Gladwin, head of the Cotswolds at the Buying Solution, “some astute buyers have been purchasing smaller cottages in nice villages around honeypot locations like Kingham and Burford and doing them up, but the cost of renovation now means that owners will not be likely to make huge returns.” “The larger Cotswolds properties are legacy homes that are purchased with a longer-term perspective; they are long-term investment decisions.”
Since these magnificent and frequently historic estates don’t come up for sale very often, buyers who want to own and live there for decades tend to be drawn to them.
According to Sebastian Hipwood, co-founder of Blue Book Agency, “the truth is that the higher-value houses across the Cotswolds don’t come up particularly regularly, so it’s quite a process to track one down in the first place.” “For instance, at £20 million (US$25.2 million), we might be discussing a few homes annually.”
Additionally, Hipwood noted that if someone is successful in flipping one of these properties, they may subsequently struggle to find their next home because the high-end inventory is so low.
Not to mention the challenges of remodeling.
Purchasing a luxury home in the Cotswolds frequently entails purchasing a historically noteworthy or listed property. According to Hipwood, obtaining permission to make alterations to a listed property can take three to six months or more, and there are several limitations on both exterior and interior renovations.
“It slows down the entire process, which is why we don’t see much [flipping],” he stated.
Permission may even be needed for minor renovations like changing the flooring or windows, and these are frequently restricted.
According to Gemma Maclaran, a residential property advisor for the Cotswolds at Middleton Advisors, “there are a lot of tight and challenging obstacles in terms of the planning regulations, conservation restrictions, and environmental restrictions, which make it harder for investors to kind of turn a profit.”
The profit margin is lowered by the lengthy and expensive renovation process.
It has grown more difficult to purchase English country homes and estates and then sell them for a profit, according to Maclaran. “Renovation costs have skyrocketed, and property prices and competition have increased in the country market.”
According to Maclaran, construction costs have “nearly doubled” since COVID, just like in the US.
“Previously, a high-quality renovation could be completed for £200 per square foot, but now it would cost around £400. That can reach £1,000 per square foot on the highest end, so it’s undoubtedly grown more difficult,” she continued.
Furthermore, the stamp duty hike from last month, which raised the tax for second-home buyers by 2%, raises the price and further reduces the possible return for a home flipper like DeGeneres. International buyers are subject to considerably higher taxes, which might reach 17% of the purchase price.
Maclaran advised looking for properties that require a lot of renovation and more modern neighborhoods for a higher chance of flipping an English country house.
“There is the ability [to flip], especially if there are outbuildings that can be converted into entertaining or lifestyle spaces,” she said, referring to developers who can unearth jewels of derelict houses in these kinds of areas—a shabby property that puts off most people.
However, based on the recent sale of a $96 million beach house in Santa Barbara County, which the Hollywood couple purchased for $70 million, it appears that decaying fixer-uppers aren’t exactly their thing.
