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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

Brisbane rents: Landlords in ‘rosier position’ as unit oversupply eases

Brisbane rents Landlords in ‘rosier position’ as unit oversupply eases

Brisbane rents are creeping up and the proportion of vacant homes is inching down, as the city’s rental market recovers from years of oversupply, experts say.

Asking rents for units rose 1.3 per cent to a median $380 a week over the past year, the latest figures from the Domain Rental Report for the September quarter show.

House rents also edged up 1.3 per cent to a median $405 over the same time period, according to the report released on Thursday.

The combined vacancy rate fell 0.1 percentage points to 2.2 per cent during the September quarter.

It comes after a wave of new apartments were built in Brisbane’s inner city in recent years, with the extra supply keeping a lid on rents.

Domain research analyst Eliza Owen said the market was now in good health, despite appearing to be near-stagnant.

Median weekly asking rents for units
REGIONSEP-19JUN-19SEP-18QOQ % ∆YOY % ∆
Brisbane – City wide$380$380$3750.0%1.3%
Brisbane – East$405$405$4000.0%1.3%
Brisbane – North$370$365$3631.4%2.1%
Brisbane – South$385$380$3751.3%2.7%
Brisbane – West$400$415$390-3.6%2.6%
Brisbane Inner City$420$425$410-1.2%2.4%
Ipswich$295$295$2960.0%-0.3%
Logan$300$300$3000.0%0.0%
Moreton Bay – North$315$315$3100.0%1.6%
Moreton Bay – South$340$335$3351.5%1.5%

For units, the stability was a positive story compared to oversupply-induced market weakness a few years back, Ms Owen said.

“There’s been a lot of fear about over-development but in the building space there’s been tightening of dwelling completions,” she said. “They’ve come down sharply and are returning to long-run average levels.”

Rents were now trending up and vacancy rates down, she said.

“The picture for south-east Queensland in terms of rental returns is pretty good, it’s also one of the most affordable rental markets for houses.”

Ms Owen said interstate migration, mostly from Sydney, was a major factor in keeping the rental market balanced.

“The tightening of the rental market is off the back of strong population growth and a very affordable lifestyle, and this is reflected in the rental vacancy rate which is down to 2.2 per cent from 2.6 in the previous year,” she said.

Median weekly asking rents for houses
REGIONSEP-19JUN-19SEP-18QOQ % ∆YOY % ∆
Brisbane – City wide$405$400$4001.3%1.3%
Brisbane – East$450$450$4500.0%0.0%
Brisbane – North$435$435$4300.0%1.2%
Brisbane – South$435$435$4400.0%-1.1%
Brisbane – West$490$485$4801.0%2.1%
Brisbane Inner City$550$530$5203.8%5.8%
Ipswich$350$350$3500.0%0.0%
Logan$365$360$3651.4%0.0%
Moreton Bay – North$375$370$3651.4%2.7%
Moreton Bay – South$410$413$410-0.6%0.0%

Space Property projects director Adam Gray said the unit market was threatening to tip into under-supply for sales, which could have a flow-on effect to the rental market.

“There’s a few reasons, one of the main reasons we’re not putting as much supply in,” he said. “There’s certainly a lot less cranes, and apartments being built than there once was.

“A lot of that was happening in the inner city and now rents are rising and rental vacancy rates are dropping.”

Ray White Brisbane CBD principal Dean Yesberg did not think a looming under-supply was something to worry about yet.

“No, definitely not,” he said. “We’ve got enough supply coming through to cater.”

The bulk of rentals were being filled because of new employment opportunities in the Queensland capital, said Mr Yesberg.

“The mining industry are getting into a better situation and that’s seen an increase in families coming to Brisbane, well qualified people coming up here for jobs,” he said.

“The coal mining people are getting into full swing, then there’s a lot of infrastructure going into Brisbane right now – the Cross River Rail and Queens Wharf casino, [for example].”

Median weekly rents – houses

CAPITAL CITYMEDIAN WEEKLY RENTQOQYOY
Sydney$525-0.9%-4.5%
Melbourne$4300.0%0.0%
Brisbane$4051.3%1.3%
Adelaide$3850.0%2.7%
Perth$3701.4%5.7%
Canberra$5500.0%0.0%
Darwin$4901.0%-2.0%
Hobart$4500.0%9.8%

Urbis director of property economics and research Paul Riga said young people were continuing to drive the rental market, particularly for units in the inner city.

“There’s a bit of a mix, when we look at the building manager feedback, the Gen Y demographic is driving that market,” he said.

“They’re here for employment and maybe from Sydney so their first port of call won’t be to buy, it will be to rent.

“It’s not a majority but it’s just grown in proportion. Some of our building managers are suggesting up to 20 per cent of their rental inquiry is coming from interstate.

“It’s a rosier position if you’re a landlord, definitely.”

Median weekly rents – units

CAPITAL CITYMEDIAN WEEKLY RENTQOQYOY
Sydney$520-1.0%-4.6%
Melbourne$4200.0%2.4%
Brisbane$3800.0%1.3%
Adelaide$3101.6%3.3%
Perth$3100.0%3.3%
Canberra$4700.0%4.4%
Darwin$380-1.3%-5.0%
Hobart$3953.9%12.9%

 

 

Source: www.domain.com.au

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Gold Coast

‘There’s nothing like it in Australia’: How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit

A mega-mansion has hit the market for a staggering price which is 500 per cent more than the owner paid for it five years ago.

The Gold Coast property is expected to fetch around $45million, a whopping profit from the $5.3million paid for it in 2013.

The home is owned by Perth civil engineer Riccardo Rizzi, who purchased the incomplete house after the previous owners ran out of money halfway through building it.

Mr Rizzi was shocked when he was able to buy the home – which had in total cost the previous owners $21.44million – for $5.3million, according to Domain.

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 2

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 3

He bought the block of land next door for $1.19million so that the property would have 106-metre water front – creating the massive 26 Knightsbridge Parade East, Sovereign Islands, home.

Mr Rizzi then got all the approval he needed to continue the initial build – including the original design by the Brunei royal family architect Bayden Goddard.

The brief was a 100-year-old chateau reminiscent of Long Island, New York, or the European coastline.

The home took an incredible five years to complete – and has just now hit the market with a price tag advertised for U.S$30million to attract international buyers.

The home has a 14.5-metre high entrance lobby, formal dining and loungerooms – one of which can host up to 30 people.

There is also Australia’s only 6.5-metre tall bronze imported Italian statue of King Neptune sitting in the entrance way

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 4

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 5

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 6

The home has a Turkish bathhouse and a 30-metre pool in addition to its waterfront views.

The home’s seven bedrooms, including a master suite with his and hers baths, are all found in the East and West wings of the home.

Each bedroom has water views.

Alex Phillis, of Alex Phillis Real Estate, told Daily Mail Australia the corridor between wings it 70 metres long.

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 7

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 8

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 9

‘The pictures don’t do it justice, you could drive a Land Rover through the middle without issue,’ he said.

Mr Phillis explained Mr Rizzi bought the fifth block of land to serve as a Roman garden.

‘Whoever is buying this home will have an entourage – whether it is their family, friends or business manager – and so the home needed the garden for children,’ he said.

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 10

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 11

The home was about 60 per cent complete – with about $15million worth of work put in to it – and so Mr Rizzi continued with the original luxurious design.

For caretakers and staff their is a self-contained granny flat and a staff wing with a second bedroom and office.

‘I’ve never seen anything like this. It’s in an absolute league of its own. It’d be worth $100million easy if it was on the Sydney harbour,’ Mr Phillis told Domain.

Mr Rizzi said: ‘I don’t think this house will ever be duplicated in Australia again because it means giving up five years of your life. The true value is not in the bricks and mortar, it’s the five years of a person’s life.’

He is selling the home to be closer to his children in Perth.

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 12

How an engineer snapped up a property for $5.3M five years ago and now plans to sell the mega-mansion with a 500 per cent profit 13

 

 

 

Source: www.dailymail.co.uk

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Gold Coast

The Gold Coast trophy home that stands to make $38.7 million profit in six years

The Gold Coast trophy home that stands to make $38.7 million profit in six years

The morning that 26 Knightsbridge Parade East, Sovereign Islands went up for auction, Perth civil engineer Ric Rizzi awoke and thought to himself the bidding would likely start at $12 million.

It was 2013 and the landmark Gold Coast waterfront property, which had fallen into mortgagee hands halfway through being built, had reportedly already cost its local owners $21.44 million.

Designed by the Brunei royal family architect Bayden Goddard,  the brief had been to create a chateau that looked 100 years old and suited the European coast or Long Island, New York. The house was majestically sprawled over four blocks of land that cost $9.44 million in 2005, and had an initial construction cost of $12 million before its owners were evicted with only half the house completed.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 1

Mr Rizzi turned up at the auction expecting to snag a bargain but even he was completely shocked when the hammer fell at $5.3 million, with him the final bidder.

“It was bizarre. When the realisation came that there were no other bidders, that was a sensational feeling. I looked at the top of the entrance hall that stands 14.5 metres above the ground and it was almost like a sign from heaven that it was meant to be,” he said.

“In what world do you actually buy a house like this for significantly less than the land value? It was a total leap of faith; I didn’t think about what it would cost to finish, whether it was a good or bad decision and normally I’m an ultra conservative civil engineer.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 2

“To take on a project was left field for me at the time but the whole thing just happened in milliseconds so I took it as a sign from God it was meant to be.”

Shortly after buying the mansion, Mr Rizzi was able to purchase the adjoining lot next door for $1.19 million and amalgamated all five blocks on to one massive title, giving the property a whopping 106 metres of north-facing water frontage.

He then spent 12 months compiling all of the documentation – building licences and approvals – and re-instating the consultants and builder who had originally worked on the house.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 3

Once that was in place, finishing the house took a whopping five years to complete.

“One of the carpenters spent five years of his life working on this house. The tiler laid more than an acre of tiles during that time. It was an absolute labour of love,” Mr Rizzi said.

“The house was never really a project to make money. It came to me in the most bizarre way and I’ve always viewed it as being a sign of the success in my life, versus just a trophy.”

The Gold Coast trophy home that stands to make $38.7 million profit in six years 4

While Mr Rizzi may not have set out to make money, it will come to him anyway. The house is once again up for sale, albeit this time finished, and with a jaw-dropping price tag to match its palatial size – it’s listed for $US30 million (about $AUD 44 million).

Marketing agent Alex Phillis of Alex Phillis Real Estate said the property was listed for sale in US dollars because it was likely the buyer would come from overseas.

“Buyers from Singapore and the Middle East work in US dollars, so we’re just making it easy for them,” he said.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 5

“I’m already fielding inquiries from overseas – this is a house that will go viral.”

But he wasn’t ruling out a local buyer, pointing out there were plenty of wealthy people in Australia who had eyeballs on it.

“This house is phenomenal on a national scale. Certainly, this is the most incredible house on the Gold Coast but I don’t think there’s anything like this in Australia, based on the construction alone,” he said.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 6

“I’ve never seen anything like this. It’s in an absolute league of its own. It’d be worth $100 million easy if it was on the Sydney harbour.”

Some of the house’s incredible features include seven bedrooms, nine bathrooms, custom copper doors, a Turkish bathhouse, eight-metre high ceilings, a 30-metre swimming pool and imported French oak flooring.

The 14.5-metre high entrance lobby features Australia’s only four-metre tall, bronze, imported Italian statue of King Neptune, which took carpenters two days just to unpack it. If you’ve got a few cars, there’s a 568-square-metre waterproofed sprayed concrete basement with 12 car parks, wine cellar and a workshop.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 6

“To give you an idea of how big this house is, we needed a drone to video the inside of the house,” Mr Phillis said.

“The east and west corridors are 80 metres long. The corridors are that high and that wide, the scale of it is just incredible.”

Mr Rizzi said he had lived in the house and loved it but with all four of his adult children now back living in Perth, he wanted to move back to the west coast to be closer to them.

The Gold Coast trophy home that stands to make $38.7 million profit in six years 8

“What it came down to, at the end of the day, was it was just too small for me,” he laughed.

“Seriously though, Scott Tyne [the original owner] was a visionary. I fulfilled the way I believe Mr Tyne would have wanted it and I hope the person who secures it truly appreciates what it actually is.

“I don’t think this house will ever be duplicated in Australia again because it means giving up five years of your life. The true value is not in the bricks and mortar, it’s the five years of a person’s life.

“And it probably cost me the cost of a Volkswagon Polo in paint sample pots. A lot has gone into this house. I want to see it loved and enjoyed.”

 

 

Source: www.domain.com.au

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