Flipping properties not as easy as flipping burgers
RISK VERSUS PROFIT?
Most people recognise the risks that come with flipping properties. You invest your time and hard-earned money into renovating a home but it may not always pay off when it comes time to sell. Before you do anything, you must plan your budget for fixing up the fixer-upper and budget down to the smallest of things. Investing Answers suggests that you pay for the house in cash and avoid getting a mortgage for it. Even splitting the investment with a partner will be better. Having a mortgage is a "fixed obligation" and it adds extra pressure for you to be successful with flipping.
WHAT DO BUYERS LOOK FOR?
A Real Estate Buyers Agents Association survey of the most popular features that Australians wanted for their new home shows the top 10 features are:
- Open plan living
- At least two bathrooms
- Natural light
- Close to schools and shops
- Kitchens that flow out to outdoor areas
- Two living areas
- Level yard
- Storage space
- Secure car space
Now that you know the most popular features, you can plan your capital investment with them in mind.
BEST HOUSE ON THE WORST STREET OR WORST HOUSE ON THE BEST STREET?
Location makes or breaks your gains when flipping a property; just remember it's all about the serenity.
Buying a run-down house and fixing it up can be great, but not if it is on a terrible street. You have to ask yourself if the features of the neighbourhood are going to add value to your home. Research past rates of property growth in surrounding streets, as well as nearby schools and amenities.
Think about factors such as proximity to trains or buses, local shopping and lifestyle conveniences like parks and recreational areas. They all enhance the appeal of a renovation prospect in a good location. Talk to your local team of experts at First National Real Estate. We’re here to help.