Property Flipping? Education is Key to Choosing Lucrative Fixer-Uppers
Property flipping can be a lucrative side hustle, with short-term projects sometimes delivering profits of up to $100,000!
But it’s not always so simple.
When navigating renovations, education is key to maximising return on investment and avoiding increasing costs over time.
Would-be Australian house flippers need to think ahead and understand what it takes to turn a fixer-upper into a sales success.
Strategic Property Buying
Research is everything when it comes to securing the right property to flip. Do you know your area and your profit margins?
The secret to effective flipping lies in a comprehensive understanding of market value before you head out to open home inspections. You need to be strategic about the property you choose and the cost of the renovations it requires. It’s also a good idea to think about external value-adding factors, like the area your property is located in.
Strategic decision-making is especially important for investors who plan to flip multiple properties over time. The more you know, the more effectively you can select properties that are the best candidates for improvement.
Invest Funds Wisely
New property investors often make the mistake of miscalculating costs and profits. To avoid this, you’ll need to get to know the real estate market and how you can make it work for you.
Be mindful of market trends and how they move. Whenever possible, aim to purchase flappable property when prices are low, and try to sell on a market high, when you can optimise return.
Educate yourself on the latest changes affecting homebuyers and use this knowledge to help increase your property’s appeal. When you understand the market you’re targeting, you can invest repair funds where they offer the best results.
How Much of a Fixer-Upper?
Last but certainly not least, how much fixing up is too much?
All properties are unique, requiring different kinds and levels of renovation to help them achieve maximum value. While some properties may need just a light spruce, others could require major structural works.
What can you do?
Aspiring property flippers need to rely on experts, obtaining a thorough building inspection and report from a trusted provider.
A qualified building inspector can help you identify the property defects that will result in the costliest repairs before you sign a contract of sale.
With education and knowledge on your side, you can plan for budget-friendly renovations that enhance earning potential without the stress of a fixer-upper gone wrong.
