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How to make $1 million ‘flipping’ houses

How to make $1 million ‘flipping’ houses

HIS last property sale earned him a tidy million-dollar profit, so it’s safe to say when it comes to “flipping”, Tom Hall knows his stuff.

The Melbourne man has been flipping property for 16 years, and has 10 successful “flips” under his toolbelt.

The Brighton property before flipping. Picture: Supplied

The Brighton property before flipping. Picture: Supplied

For the uninitiated, flipping refers to profiting from real estate, either by “buying low and selling high” or buying a run-down home and renovating it for profit.

Mr Hall, a former electrician and real estate agent, ventured into the world of flipping when he bought his first property at 24 for $124,000, renovating it before and after work and on weekends.

He more than doubled that investment when he sold it a couple of years later for $265,000 after shelling out just $14,000 in renovations – and his love affair with flipping began.

Knowing he was onto a winning formula, Mr Hall went on to purchase bigger, more expensive properties each time, culminating in the most recent sale of a Brighton property which he bought for $1.35 million, and sold for $2.35 million 18 months later.

Mr Hall transformed the four-bedroom home. Picture: Supplied

Mr Hall transformed the four-bedroom home. Picture: Supplied

In the early days, Mr Hall and his wife Alicia used to brave the “dust and dirt” and live in each property during the renovations.

With two young boys, that’s no longer possible, but today Mr Hall runs his own renovation business, Overhall Your Property, alongside his flipping passion.

“I’m a visual person and to see the property go from nothing to something amazing gives me a thrill,” he said.

“It can be a bit stressful – it never stops and it’s very consuming.

“But I wouldn’t have it any other way. I wouldn’t want to do anything else.”

Mr Hall said a successful flip came down to meticulous market research and the ability to do most projects yourself.

When he bought it, the bungalow was looking a little run-down. Picture: Supplied

When he bought it, the bungalow was looking a little run-down. Picture: Supplied

But is flipping always a sure-fire cash-cow?

New analysis from CoreLogic revealed 90 per cent of flipped properties sold last year made a profit – but as house prices ease in Melbourne and Sydney this year, a rise in loss-making flipped properties is expected.

“Although the proportion of flips at a loss has declined from recent highs in 2009 and again in 2012, there has been a clear increase in loss-making flips recently,” CoreLogic’s Property Flipping Report stated.

After flipping, it was transformed. Picture: Supplied

After flipping, it was transformed. Picture: Supplied

Nevertheless, while Mr Hall agreed property prices had already cooled slightly, he said there were still plenty of opportunities to make decent money flipping.

He said lower house prices could even help flippers enter the competitive housing market.

“If you put the right product to the market and keep the purchaser in mind you’ll have no problems selling property,” he said.

“The whole idea of owning your own home and renovating it is a big Australian dream – everyone wants to own property.

“There’s definitely still a future in it.”

The house was in need of a makeover. Picture: Supplied

The house was in need of a makeover. Picture: Supplied

So how do you make it in the flipping business? Mr Hall shared his top tips for flipping success.

DO YOUR RESEARCH

“If you’re looking to buy, educate yourself on the market – entry price is the most important thing. If you pay too much getting in, you won’t make dollars and cents at the end. I read heaps of books, and really annoy real estate agents on trends and what’s going on in the market. I always hassle them because they’re pretty much three months ahead of the market – they see what’s going on in the market before it hits the papers,” Mr Hall said.

“The main thing for me is getting in at the right price. Keep an ear to the ground in your market and don’t look at 10 different suburbs, look at two, otherwise you’ll just confuse yourself.

It’s now a stylish residence. Picture: Supplied

It’s now a stylish residence. Picture: Supplied

“On my way home I always drive a different way so I can see what boards are up and what’s going on. I’m a bit nosy, but you have to be if you want to do this seriously.”

START SMALL

“I have flipped 10 different projects varying from smaller properties and apartments to bigger houses. I really built my way up from something small into property worth millions now, and the way to get into it is to start small and learn from there – I’m self-taught.”

DO IT YOURSELF

“Hiring tradies can really chop into your budget. If you can always build on your skills and learn you will save yourself a hell of a lot of money, so the more you can do yourself the better off you’ll be at the end. Always use a licensed plumber and electrician, but for example if you have someone doing rendering, hang around and learn about a trade if you’re not experienced in it, so next time you can give it a go yourself and save big money.”

Nearly nine out of 10 ‘flipped’ properties sold last year made a profit. Picture: Supplied

Nearly nine out of 10 ‘flipped’ properties sold last year made a profit. Picture: Supplied

INVEST IN A GOOD FOOTPRINT

“My strategy is always renovating what is there – I’m not a new-build man, I’m an add-value man. I try to utilise the home’s footprint to add value. You’ve got to have a bit of forward thinking in terms of what you can do with spaces.”

KNOW YOUR BUYER

“Have a target market in mind. Whether it’s a family with children or a young couple, you need to do your research and tailor your design towards the purchaser. That’s the end game – it’s not necessarily for you, it’s about getting a sale from the right purchaser who will pay the highest price.”

CoreLogic predicts a rise in loss-making flipped property this year. Picture: Supplied

CoreLogic predicts a rise in loss-making flipped property this year. Picture: Supplied

Originally Published: sunshinecoastdaily.com.au

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Brisbane

How much it costs to buy in Brisbane’s school catchment zones: Domain report

House prices in some Brisbane school

House prices in some Brisbane school catchments have skyrocketed by almost 30 per cent over the past 12 months, proving education is not only golden but worth far more to families than a big pool and river views.

The dramatic price hike comes amid reports of fierce buyer competition and an airtight rental market in the city’s key family hotspots, as growing hordes of home hunters place primary and secondary school access at the top of their wish list.

According to the latest Domain School Zones Report, which measures median prices within school catchments over a 12-month period, prices in a majority of both primary and secondary school catchments rose significantly higher than their respective suburb, with families appearing to place more onus on secondary school placement.

Across Greater Brisbane, a whopping 72 per cent of secondary school zones experienced a price rise, compared to a slightly lower 61 per cent of primary school catchments.

Domain senior research analyst Dr Nicola Powell said prices in some secondary school catchment zones increased an incredible nine times faster than that of prices in Greater Brisbane, with the sunshine state capital further featuring heavily in the national combined cities top 10, with five primary school catchments making the list.

She said the figures also revealed just how much importance families placed on education – no matter their property budget.

Brisbane’s top 10 school zones for house price growth
SCHOOL LEVELSCHOOL NAMESCHOOL SUBURBMEDIAN SALE PRICEANNUAL CHANGE
PrimaryBald Hills State SchoolBald Hills$675,00029.2%
PrimaryWynnum West State SchoolWynnum West$547,50028.8%
PrimaryRainworth State SchoolBardon$1,150,00027.8%
PrimaryIpswich Central State SchoolIpswich$365,00027.0%
PrimaryCannon Hill State SchoolCannon Hill$755,00025.8%
PrimaryTingalpa State SchoolTingalpa$675,00025.6%
PrimaryMarsden State SchoolMarsden$342,00023.9%
SecondaryFlagstone State Community CollegeJimboomba$471,00023.9%
PrimaryMorayfield State SchoolMorayfield$382,25023.9%
PrimaryAspley State SchoolAspley$776,50023.3%
Source: Domain Group. Median sale price is based on 12 months of data to October.

“These catchments are a fundamental driver for property decisions because education is hugely important … And one of the things I have seen [within the data] is those positive rates of growth were dotted around the city,” Dr Powell said.

“In fact, when you look at the top 10 [school catchments], it spreads from expensive pockets to more affordable.

“Because it doesn’t matter what price point [buyers are shopping at], they place equal importance on education and that’s what this report highlights.”

While the report revealed secondary school zones outstripped their junior counterparts in overall performance, it was primary school catchments that claimed the highest property price hikes, with the highly desirable Rainworth State School catchment, in Bardon, undergoing one of the biggest spikes of the year.

Median house prices there soared by 27.8 per cent to a bank-breaking $1.15 million.

It’s a figure that comes as no surprise to mother-of-three Megan Matthew, who purchased a home there 12 years ago for the sake of her and her husband’s children, only to recently sell 49 Outlook Crescent with the ambitious plan of upgrading into the same hotspot.

Since then she admitted to spending countless hours combing websites and walking the streets in the hopes of finding the perfect family home before Christmas, with a severe lack of stock forcing them into the rental market in the interim.

“My partner and I bought here in Bardon a long time ago … and we bought our home understanding that it was in a fantastic area for schooling … particularly for Rainworth State School,” Mrs Matthew said.

“We wouldn’t have sold it if it had had a bigger footprint … but now I am finding it really tough to find the perfect place [to purchase].

“It’s a matter of low stock, competition [for the area] and prices rising … in fact I can see the prices rising in front of my eyes.

“Even getting a rental was really challenging. It’s a landlord’s market and it’s a seller’s market right now.”

Mrs Matthew said what made the Rainworth State School catchment in Bardon so special was more than just the school itself, but the fact it was located close to top secondary schools.

“That´s why Bardon is so great … you’ve also got Brisbane Girls Grammar or St Joseph’s in Gregory Terrace as well as great secondary state schools. In fact, a good family home needs to be two-fold, it has to be in a good catchment for primary schools but also close to those secondary schools. It forms a big a part of the buying decision,” she said.

“Bardon is also only 10 minutes to the city so if you were there and if you want to go out, it ticks all the boxes.”

While Mrs Matthew’s two eldest children are now in secondary school (attending Brisbane Girls Grammar and St Joseph’s Gregory Terrace), it’s her three-year-old who is now dictating their property options, and a prime reason why her and her husband are so desperate to buy back into the Rainworth State School catchment.

House prices in some Brisbane school

Ray White Paddington agent Judi O’Dea sold the Matthew family home and said in her experience, the top property ingredient for Brisbane families was often the local primary school – with Rainworth State School catchment being an enormous drawcard for years.

“It’s always been extremely important and motivating for families to get into that catchment and they’ll do anything not to be just in that zone, but part of that community,” Ms O’Dea said.

“I call that zone the ‘happiness triangle’ and so many people try to live in it because it’s a short distance from Rainworth or St Joseph’s in Bardon … and considering families spend 15 years of their life going back and forth from their children’s school … well, it’s something you buy for.

“And because you’re often there in that catchment for 10 to 15 years, those properties are so tightly held.”

Cannon Hill State School catchment also earned a spot in the city’s top 10 zones for price rises, with houses jumping by 25.8 per cent to $755,000 over the past year.

House prices in some Brisbane school

Meagan Muir, of Place Estate Agents Bulimba, said the area was fast becoming a family hotspot thanks to the community and the zone’s central location, with prices noticeably soaring over the past five years.

“At the moment, houses in that Cannon Hill State School catchment are taking between just seven to 14 days to sell … and if a home ticks those boxes, it gets snapped up very quickly,” Ms Muir said.

Byron Freeborn, of Raine & Horne Wynnum Manly, said homes in the incredibly popular Wynnum West State school catchment (which ranked second on the School Zone list) were now so popular buyers were increasingly trying to snap them up off-market.

He said the catchment, which experienced a median price rise of 28.8 per cent to $547,500 over the past year, was now a magnet for young couples and families who had been previously renting in Bulimba and Morningside, but were unable to buy in those pricier patches.

House prices in some Brisbane school

Bald Hills State School was a top performer on the Domain report, with prices soaring by 29.2 per cent over the year to $675,000. The top performing secondary school catchment was for Rochedale State High School, where median prices rose by 20.5 per cent to $750,000.

 

Article Source: domain.com.au

 

 

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Brisbane

Yeronga trophy home fronting the Brisbane River listed

Brisbane River

A riverfront Yeronga, Queensland trophy home has been listed without a price guide.

The five bedroom, five bathroom abode is being marketed by Heath Williams and Nick Hurwood of Place.

Situated at 363 Brisbane Corso, the tri-level home fronts the Brisbane River.

Set on 916 sqm, it features two swimming pools and a private boat pontoon.

Other features include full-height stacked glass sliding doors opening out to a covered balcony which capture sweeping Brisbane River views as well as a ground-level rumpus or games room equipped with a bar, a projector and a linked balcony.

It is located seven kilometres from the CBD.

 

The post “Yeronga trophy home fronting the Brisbane River listed” appeared first on the propertyobserver.com.au Blog

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Brisbane

Brisbane houses solid but inner-city unit market oversupplied: RiskWise

Brisbane houses

The impact of COVID-19 on the property market is greatly varied across this large state.

COVID-19 has significantly increased the unemployment rate in Queensland with a greater impact on regional areas, particularly those with a heavy reliance on tourism. As of August 2020, the unemployment rate was 7.5 per cent.

The sustained period of the border closure between Queensland and other states has been a contributing factor to the already substantial impact of COVID-19. This is due to the strong connection between Queensland and New South Wales and, to a lesser extent, Victoria.

COVID-19 has helped strengthen ‘work from home’ opportunities, meaning owner-occupiers can take advantage of ‘lifestyle’ prospects instead of being tied to employment hubs.

Before COVID-19 hit, there was already a strong trend of sea- and tree-change homebuyers looking for the best of all worlds – lifestyle, accessibility to employment hubs and affordable housing.

In Queensland, the areas that attract those lifestyle buyers include the Gold Coast and Sunshine Coast.

Beachside suburbs especially outperform the market as they offer fantastic lifestyle opportunities.

However, while solid house price growth may be experienced in Brisbane, the inner-city unit market remains oversupplied and, therefore, high risk.

 

The post “Brisbane houses solid but inner-city unit market oversupplied: RiskWise” appeared first on the propertyobserver.com.au Blog

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