Tom Hall, an electrician and former real estate agent, says successful house flipping takes hard work, perseverance and a handful of simple rules.
Amateur renovators shouldn’t bite off more than they can chew. Select a small property as your first project with a view to buying a bigger one for your second. If you start with something small there’s less risk. “I started with a one bedroom apartment in Carnegie. I had to earn my own deposit, bought it, sold it and doubled my money in three years so it was a good start.”
Buy at the right price
Research the property market to find a place that offers good potential capital growth. Familiarise yourself with sales data so you know a good deal when you see one. Thorough research could see you bag a bargain, which means reaping a bigger reward once the renovations are complete. One of the most important things is buying at the right price, that’s one of the main things you should look for.
Negotiate a long settlement period
A 90-day settlement will give you time to draft designs and organise trades well in advance of your start date. If you have a 30-day settlement, you haven’t got as much time.
Tailor to a target market
Some renovators make the mistake of customising their improvements for their own purposes. But Hall recommends keeping a specific demographic in mind. A couple without children was the prime market for a one-bedroom property in Windsor, which he purchased for $475,000. Adding a loft-style bedroom for guests or to use as a study helped fetch a sale price of $850,000.
Every little bit counts when it comes to shaving down costs. Always ask for a trade discount when you’re buying supplies, keep an eye out for sales and make the most of connections who can offer you wholesale prices.
If you would like any further information please do not hesitate to contact the friendly sales team of Joe, Maria, Bradley and Jeff of Dowling Mayfield on 02 4960 0499