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People buy and sell all sorts of things in order to make a profit, but have you ever considered buying and selling houses as a business opportunity? It’s called house flipping and if you have the right skills and assets, you could make a lot of money.
Read on to discover how to make flipping houses work for you in a robust Australian housing market.
Australia currently has historically low interest rates of 2.00%. The general consensus among the big banks is that rates will remain on hold well into 2016. This means more people than ever are looking at purchasing property to make the most of affordable rates with low repayments (depending on the purchase price).
This is good news for house flippers as you have a market of keen buyers looking for quality in good locations. With foreign buyers accounting for an estimated 16% of all apartment sales in the new property market, and more than 11% of all new houses, competition for established properties is hot.
House flipping is most certainly not for everyone. In order to be successful there are a few things you must possess:
You will not only need money for your initial property purchase (a decent deposit as a minimum), but also money to hold the property until it is time to sell which could be several months’ worth of interest payments.
If you are in the market for a loan to fund your own house flipping project then the award-winning home loans from NPBS should be your first port of call. Remember also that in order to make a profit some sort of renovation or improvement will need to take place, so you will need money to buy building/fit-out supplies and maybe some professional trade people depending on your level of expertise.
House flipping requires plenty of time. The big profits in house flipping come from doing most of the grunt yourself. This means your house project could tie up all of your spare time and then some whilst you paint, saw, scrub, hammer and sand your way to success.
Take into consideration noise level restrictions in your purchase area if you will be doing most of your work at night.
If you’re a bit of a handy Andy and have the skillset to manage most of the major renovation jobs yourself then house flipping could be very lucrative for you. Think about all the “fixing” you may need to do including the cosmetic improvements and the money you would spend outsourcing jobs such as carpet laying, painting, roofing, installing kitchen sinks etc. If you can DIY you will save that money and are more likely to reap the rewards when it is time to sell.
If you have considerable knowledge of the real estate market and understand growth areas and can identify opportunities, then house flipping may be for you. You have to be able to buy a house for the right price in the right area and know what improvements to make to get the best possible price.
The rewards on offer for house flipping can be huge if you possess money, time, knowledge and a flair for DIY. Take advantage of historically low interest rates and you could discover your very own rough diamond just waiting to be polished to perfection..and profit!
Image courtesy of fantasista at FreeDigitalPhotos.net