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5 Tips For Finding The Perfect Property to Flip

Young family in the process of moving house

Cottonbro from Pexels

The real estate business in Australia is booming more now than ever, with residential prices rising by 23.7% in 2021. This increase has also led to more listing and buyer agents coming into the property scene due to the rising demand for property. 

As glamorous as the real estate market may seem, it takes more than money to make money through flipping properties. It sounds simple, but finding the right properties to flip requires strategic effort and planning. If you move in head first without knowing what you’re going into, it could be a huge disaster, and you might lose substantial resources.

Here’s some advice to help you make a killing and maximize your profits.

1. Choose the right location

Real estate is all about location. It is generally advisable to purchase a home that looks “undesirable” so you can fix or make necessary renovations before selling it at a higher price, but the location also matters greatly. The curb appeal of a property has to do with how the property looks on the outside, which can be changed. However, getting property in a bad neighbourhood is a terrible idea. You can increase the curb appeal, but you cannot renovate the whole neighbourhood.

Generally, buyers would not like to purchase a house in a location laden with crime and filth. It is also advisable to consider buying property in a location that’s not far from where you live since you’ll be doing routine inspections occasionally.

P.S.: Try as much as possible to avoid noisy environments, like places close to a school or a fire station.

2. Examine the market

This step is important to determine how much you’ll budget for a house. Consider comparable properties, how long the house has been listed for sale, and any taxes on the property.

Comparable properties help you understand if you’re making a good choice and if it is realistic to pick a home in a particular location. Make sure to only compare the prices with those of sold houses. 

The longer a house has been listed for sale, the more property taxes it has and the more it costs. So, pick a home that hasn’t been on the market for too long.

 Moving boxes in the kitchen

3. Use a buyer’s agent or professional

You may spend more money to hire a real estate professional, but it might be worth it, especially if you don’t know much about buying and selling property. Professional buyers agents like Locate Buyers Agency have up-to-date information on the latest real estate trends and are in the best position to give you advice. All you need to do is to let them know the kind of house you’re looking for or give them a rough estimate of your budget, and they will find you the perfect house.

4. Examine the property

When you’ve found a house you think may be worth it, it is time to thoroughly inspect the home. This will give you a clearer idea of how much renovations will cost. As mentioned earlier, a home’s curb appeal can be improved by renovation, but there are some things you should avoid, such as; 

Any building structural damage

  • Faulty foundation
  • Narrow bathrooms and kitchens
  • Hard-to-fix structures
  • Uneven floors

Hire an expert property inspector to assess the house’s condition before signing the contract. These professionals are trained to look out for mould, faulty connections, water problems and any other issues you may miss. 

5. Budget, but don’t make it too strict

Create a realistic budget but ensure enough funds to cover unforeseen expenses. In the beginning, you may have a strict plan, but in the long run, you may need to switch directions or do extra renovations on the home.

Aside from unanticipated or renovation costs, budget for the following expenses:

  • Acquisition or purchasing costs
  • Carrying costs
  • Marketing costs

Property flipping is indeed a lucrative business, but you have to know your onions before getting into it or simply employ the services of a buyer’s agent. The flipping process might seem like a tasking one, but if you play your cards right, you’ll smile to the bank!