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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

Speculators back in the game to push up property prices

property prices

Investors in residential property have come out of hibernation and were the driving force behind the record 5.5 per cent increase in housing finance in March.

Having kept a low profile during the pandemic, investors and speculators are now returning to the market with gusto. And that suggests only one thing – home prices will continue to be pushed higher.

The colloquial definition of what turns a housing boom to a housing bubble is the increasing participation of investors. Judging by the latest numbers from the Australian Bureau of Statistics (ABS) investors could soon replace first home buyers as key drivers of the red-hot property market.

The 12.7 per cent increase in financing to investors dwarfed the (already strong) 5.2 per cent increase in finance to owner occupiers. And the value of those loan commitments to investors is up 54 per cent on March last year.

And the phoenix-like rise in housing investors has coincided with early signs of a peak in demand for finance by first home buyers whose participation in the housing market appears to be running out of steam. In March first home buyer finance fell by 3.1 per cent (seasonally adjusted), according to the ABS.

The levelling out of first home buyer demand was only ever a matter of time as this group would ultimately come up against the barrier of affordability.

Government assistance and low interest rates spurred demand from first home buyers last year but as prices have moved up the window of opportunity has narrowed. Meanwhile, some of the robust demand from those making their first move into property is thought to have been pulled forward.

Investors deserted the residential property market in response to COVID as rents and returns fell as did values in the early stages of the pandemic. The apartments segment was hit particularly hard as immigration disappeared.

While rents remain at historically low levels, there are clear signs that rental increases are starting to come through – particularly in the outer suburbs of capital cities, the smaller capitals and in regional areas. In March rents rose by 0.6 per cent in Sydney and by 0.2 per cent in Melbourne according to CoreLogic

But the broader enticement for investors is capital gains on offer in the housing market, which is now in full swing. Prices nationally rose by 1.8 per cent in April and by 2.8 per cent in March and careered ahead 6.8 per cent over the past three months.

For big banks lenders the return of the residential property investor could provide them a new source of demand growth in the event the first home owner market continues to run out of puff.

Despite historically low interest rates, the banks say they are not seeing any deterioration in the quality of their loan books. This is despite intense competition among bank and non-bank lenders to capitalise on the demand for housing finance driven by low rates.

Westpac’s accounts for the six months to March, which were released this week ,showed that only 2 per cent of customers were behind on repayments – a level that has remained the same for a year.

For the most part the banks are arguing that there is no need to apply any macroprudential brakes to the housing market.

But history tells us the rise in investor participation also sets off alarm bells within the regulatory agencies, the Australian Prudential Regulation Authority (APRA) and the Reserve Bank.

Both have been disinclined so far to wade into the rapidly heating property market and introduce measures that will hamper first home owners. But regulators have plenty of form in targeting the more speculative investor cohort with macroprudential tools. And the banks will need to avoid the riskier lending that has traditionally been associated with financing investors.

’The resurgence in investor financing and the continuing surge in owner occupiers who are trading up points to further near term strength in home prices,” according to AMP chief economist Shane Oliver.

“It also points to a further acceleration in housing debt, a further rise in the share of interest only loans and increasing lending at high loan to valuation ratios. All of which is increasing pressure on the RBA and APRA to move to tighten lending standards in order to head off increasing risks of financial instability – which we expect to occur sometime in the next six months.”

 

 

Article Source: www.brisbanetimes.com.au

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Brisbane

May 2021: How did Brisbane apartment values perform in April?

Brisbane’s median apartment value reached a 2020 high of $390,000. Now it’s $406,000.

Brisbane apartment values are continuing their surge, according to property data firm CoreLogic.

Values rose one per cent, the same as Melbourne.

It puts Brisbane’s rolling quarterly apartment gain at three per cent, following jumps of 1.7 per cent in March and one per cent across February.

Brisbane’s median apartment value reached a 2020 high of $390,000. Now it’s $406,000, up from just over $400,000 last month.

Apartments in Brisbane around the new median

Breeze, West End
Price – One bedroom apartments from $409,000

Brisbane apartment

Breeze West End 43 Ferry Road, West End QLD 4101

Forming part of Pradella’s $1 billion masterplanned Riverside West End community, Breeze 110 apartments in Brisbane’s south.

It features a number of resort-style amenities as well as abundant green open spaces and retail offerings.

A rooftop skygarden terrace complete with a 20-metre lap pool and landscaped entertainment area crowns the 11-storey complex.

The Coterie, Fortitude Valley

Price – One bedroom apartments from $383,300

Brisbane apartment value

The Coterie 365 St Pauls Terrace, Fortitude Valley QLD 4006 

The completed Fortitude Valley development The Coterie by Vicland Property Group, Rothelowman and Bruce Henderson Architects has views across Brisbane from its St Pauls Terrace location, just 1.5 kilometres from the CBD.

The site’s original heritage bakery facade and feature interior elements of St Pauls have been carefully integrated into the development to preserve the history of the Valley with a convenient cafe offering a welcoming, local face to the modern community.

The 249 apartment development features a private rooftop retreat atop each tower, landscaped gardens, sun decks, a swimming pool and alfresco entertaining zone.

Renovaré, Yeronga

Brisbane apartment value

Renovaré Yeronga 174 Venner Road, Yeronga QLD 4104 

Price – One bedroom apartments from $389,000

The Gardner Vaughan Group Yeronga project Renovaré is offering its one bedroom apartment from $389,000. They’ve recently released their third stage, Vensuto, made up of 33 one, two, three and four bedroom apartments.

The project has achieved a five-leaf rating of sustainability from The Urban Development Institute of Australia (UDIA) which highlights the features and positive impact on the environment and community.

 

Article Source: www.urban.com.au

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Gold Coast

Grant Hackett’s luxury beach front pad on Gold Coast’s ‘Millionaires’ Row’ hits the market

Grant Hackett

Former Olympian Grant Hackett has listed his luxury beachfront pad on “Millionaires’ Row” on the Gold Coast in the hopes of upsizing in Melbourne.

The three-bedroom villa at 1/100 Hedges Avenue, Mermaid Beach is located on the most prestigious beachfront strip in Queensland, mere steps away from beaches and cafes.

Hackett grew up in the adjacent suburb of Mermaid Waters. He said the opportunity to buy the home six years ago was too good to resist.

“I decided to move back to the Gold Coast in 2014. Who doesn’t want to move to the Gold Coast and live on the beach?” Mr Hackett told Domain.

“It’s a perfect spot. Steps away from the beach and I absolutely fell in love with it straight away.”

In the last four years, the gold medallist known as one of Australia’s best long-distance swimmers has relocated to Melbourne with his family.

Grant Hackett

Hackett snapped up the property for $1.5 million in 2014. Photo: Supplied

They have used the Gold Coast property as a holiday home since then and have decided it is time to sell.

“There’s no news yet but our family is growing down here in Melbourne,” Mr Hackett said. “We want to get a bigger property down here in Melbourne.

“When we do go up [to the Gold Coast] we are spending all our time with our family. It doesn’t make sense to hold such a beautiful property any longer.

“From our perspective, we’re sad to see it go but I’m sure someone else will get some pleasure out of it.”

Grant Hackett

The home also has two powder rooms. Photo: Supplied

The home, which has a total space of 331 square metres, spans four levels and has a double lock-up garage in the basement plus visitor parking.

The property has open-plan living and dining rooms that showcase the beach views.

It also has a private internal lift to take residents up to the fourth-floor rooftop terrace with panoramic views of the Coolangatta coastline back to the mountains.

Grant Hackett

The beachfront villa has panoramic views Photo: Supplied

Selling agent Troy Dowker of Kollosche said he anticipated the luxury modern villa would be in high demand.

“A luxury style villa is few and far between,” he said. “You get rockstar views from the rooftop terrace. It is a pretty amazing space.”

The property last sold for $1.5 million in 2014, records show.

It is scheduled to go to auction on May 30 at 9am.

 

Article Source: www.domain.com.au

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