The buy, renovate & flip (when the time is right) strategy. Create wealth by leveraging property investment.

They’re known as ‘flippers’ or ‘DIY-ers’. Inspired by shows like Selling Houses Australia, these people start their weekends at home improvement shops, with a list of tools for their weekend of renovating. The goal? To do up old, unloved properties within a year or two and make a profit.

Date:

18-Nov-2020

Category:

Buying

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Author:

Amanda Smith

The buy, renovate & flip (when the time is right) strategy. Create wealth by leveraging property investment.

They’re known as ‘flippers’ or ‘DIY-ers’. Inspired by shows like Selling Houses Australia, these people start their weekends at home improvement shops, with a list of tools for their weekend of renovating. The goal? To do up old, unloved properties within a year or two and make a profit.

It’s known as ‘house-flipping’ in the industry and it’s become a realm of reality TV that’s entertaining. You buy a home, renovate it, then sell it quickly at a profit – then, repeat. Although this is a lucrative strategy, it’s the not necessarily an easy one.

A lot of hard work goes into flipping homes. You also have to consider the state of the market, the bridging loans, and all of the favours you’ll most likely have to call in. Property flipping should be viewed as a time-consuming side job.

‘Flipping’ factors to consider

It’s critical to start (and stick to) a budget. Otherwise, you might find you start to fall in love with the house and you’ll choose all the expensive add-ons, rather than the most economically friendly. Try to look for houses that need cosmetic changes, rather than major structural updates.

What area of the Adelaide Hills do you want to sell in? Get familiar with what people are looking for when they move there. What type of people find the suburb attractive and why?

Consider affordability, access to transport, schools, and community amenities. Learn about the current and future projects in the area. These will no doubt affect your asking price. Take a look into the sales results for the suburb you’re interested in.

Understand that there’s hidden costs including agency fees, stamp duty, and higher interest rates (as an investor). It’s important to learn how to read the market.

And most importantly, consider the time it’ll take to fix the property. Are you ready for the commitment?

Consult a real estate agent. Get a property value estimate.

While house flipping is lucrative, it’s best to sit with an agent to discuss your future goals and real estate asset management. Of course, do your due diligence in researching but when it comes to understanding what’s possible in the Adelaide Hills, we can help.

If you’re willing to hold onto the property until the next best time to sell (and continue renovating it in between), this approach might be worthwhile. To arrange an appointment with our real estate team in the Adelaide Hills, call us on 8391 5004 or use this contact form.

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