House flipping for profit
In Brisbane’s bayside, we have a booming property market, and one popular trend for home investors is house flipping, because when it’s done right, with the right team behind you, flipping can make you some serious profit.
What is house flipping?
Flipping is when you buy a house purely for the reason to renovate it within a budget and re-sell it when you are done for profit. Flipping projects are usually done within a few months, and if you have a qualified builder in on the project from the beginning, it can be turned around and sold very quickly. If you don’t have experience flipping houses, it’s best to have a team of professionals by your side for the ride, to ensure your budget doesn’t get blown before you get everything done.
The basic rules of flipping houses for profit, not loss.
The key factor to a successful flip is to have a plan, and to not stray from it. You must be aware of what is happening not only in the local market, but in the national market as well. Knowing supply and demand needs for the market is essential. Your reno budget needs to detail everything in a spreadsheet or a budget software program. Factor everything into it, including capital gains tax obligations, real estate agent fees and interest on your loan.
What to renovate?
Focus on the renovations that are going to be appealing to buyers. Don’t worry about structural renovations that are going to be costly in labour, but focus on the cosmetic elements.
Have a budget for painting, its’s going to be one of the biggest expenses you have, so you need to make it fit into the budget. Leave it until everything else is done, so you don’t have to waste time and money going back over things. Renovating for your local market is crucial, so using colours that will add value to not only your home, but the area it is in is a great idea.
One area you need to get6 right is your kitchen. Plumbing, gas, electrical and benchtops are all expensive items for a renovation project, so you need to have everything planned and sorted to the dollar.
Creating a modern yet budget conscious bathroom is really important when it comes to flipping. Every dollar you spend on your bathroom renovations will be wasted if you aren’t smart about it. It’s very easy to waste money on expensive fittings, but if the layout of the room is not great, there isn’t any point. Where possible, turn a small bathroom into a larger one. Space is important for adding value; clever space is even more important.
Living & Outdoor Spaces
Making your living spaces spacious and practical is important. Use your space wisely, and make sure your flooring and wall materials and colours add value. Do your research.
Fresh paint, indoors and out, a tidy landscaped garden and new floor coverings will benefit your sale price greatly. Remove any items that might look run down, like old sheds or run-down patio covers. You also need to apply for any permits from your local council. Processing takes time and costs money, so have the planning stage ready to go very early in the project.
Getting the work done
The most successful flippers get their hands dirty, however having a builder on board means your project has insurance, and quality workmanship guaranteed, not to mention save time.. Getting the easy work done yourself will save money for the project, but some jobs just need to be done by licensed contractors.
If you need a renovation team, LimeTree Constructions have many years’ experience in these types of projects. Contact Joseph today to start your house flipping renovation plan.