8 Tips To Make Money House Flipping
As the popularity of TV home renovation shows, including The Block, stays strong, house-flipping for profitable success is on the minds of a growing number of Australians keen to make some extra income.
But tread carefully. Buying a house and then doing a quick fix-up before putting it back onto the fickle real estate market and expecting to make a profit can be a tricky business and it needs to be well-researched and planned.
To help boost your chances of house-flipping for profit, try these practical tips to unlock the door to money-making potential.
1. SET YOUR BUDGET AND STICK TO IT
Don’t expect overnight success.
Flipping house can be risky and having a strict budget helps you set boundaries and understand how to minimize those risks.
Having a thorough understanding of the local market is a solid foundation. To work out your available budget properly, focus on three components of your budget – the cost of buying the property, the cost of renovating the property and the cost related to selling (agent fees, marketing, legal costs, etc).
2. LOCATION, LOCATION, LOCATION
Where the property is matters.
For potential buyers, it’s about imagining themselves there – close to schools, shops, or whatever is most important to them and their lifestyle.
The location of the house will be a major selling point when it’s time to sell. The property’s proximity to schools, shops, public transport and parks or even beaches will also help capital growth. It’s also a good idea to look into high employment growth areas.
3. UNDERSTAND YOUR SKILLS
If your professional background is in the construction business, then you’re off to a good start. With the right experience to understand council regulations and the talents to do the renovation work yourself, you’ve got a great head start to make some profits. But if you don’t know what you’re doing? Step aside. The damage you cause could be costly to repair and not worth the stress. Of course, letting qualified tradespeople do the work means your profits will not be as great – and that means more need to buy well and sell well too.
4. KNOW THE MARKET
Research into the ups and downs of the local property market is your best tool for house-flipping success. By looking at suburbs that have had strong growth in recent months/years, you can radiate out that little bit further and look to the neighbouring suburbs, as there’s a strong chance they will be the next suburbs to watch. Exciting new infrastructure and developments by local council are signs of a suburb on the move – handy info to have to help you buy and sell for profit.
5. COSMETICS TOUCH-UPS ARE BEST
Seeing the big picture is key to house-flipping success.
Look past the old carpet and peeling wallpaper to focus on the structural qualities. The most profitable house-flips can be dressed up with some plastering and a fresh coat of paint but if properties need major work involving re-stumping, or major electrical or plumbing repairs, the maintenance bills will mount – and that means less profit.
Avoid houses with unstable foundations or obvious cracks in concrete or brick walls. Always get the wiring and plumbing checked – if it needs too much work, it’s not the best house-flip for you.
6. THINK ABOUT THE BUYER
What makes a successful house-flip? Selling at a great price. To do that, you need buyers who want to buy – and compete against each other to bid more. Renovate with the needs of your ideal buyer in mind. If it’s a family home, near good schools, plan your renovation to add touches families will love to help catch their eye.
7. COST-EFFECTIVE QUALITY
Keeping the budget tight doesn’t mean choosing the cheapest materials that are poor quality.
Shop around for things such as paint, tiles, and other fixtures and save to help you make the maximum profit possible, without compromising on quality too much. House-flipping for success is not about choosing the most stunning fixtures and fittings – instead, buy wisely and well.
8. SMART SUSTAINABILITY
By adding sustainability-related features to your renovation, you broaden your appeal to smart buyers who are keen to be more environmentally-responsible in the way they live. Choose your investments wisely. Solar is a long-term investment (that can be costly) but other ways to add sustainable features include installing double-glazed windows or skylights to add natural light and warmth.
The main tip is to be realistic. If you go into it thinking house-flipping is easy, you’ll be very mistaken and may be disappointed. But with some time and planning, you can do an amazing house-flip that sees your bank account get a big boost – ready for the next renovation project.
Vault Interiors Property Styling is in the business of creating higher value spaces in Sydney through vibrant and edgy design. We specialise in unlocking the potential in your property and helping you increase its value through presentation, functionality, and appeal.
Contact us today to get an obligation free quote from a property stylist.