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How to make $1 million ‘flipping’ houses

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How to make $1 million ‘flipping’ houses

HIS last property sale earned him a tidy million-dollar profit, so it’s safe to say when it comes to “flipping”, Tom Hall knows his stuff.

The Melbourne man has been flipping property for 16 years, and has 10 successful “flips” under his toolbelt.

The Brighton property before flipping. Picture: Supplied

The Brighton property before flipping. Picture: Supplied

For the uninitiated, flipping refers to profiting from real estate, either by “buying low and selling high” or buying a run-down home and renovating it for profit.

Mr Hall, a former electrician and real estate agent, ventured into the world of flipping when he bought his first property at 24 for $124,000, renovating it before and after work and on weekends.

He more than doubled that investment when he sold it a couple of years later for $265,000 after shelling out just $14,000 in renovations – and his love affair with flipping began.

Knowing he was onto a winning formula, Mr Hall went on to purchase bigger, more expensive properties each time, culminating in the most recent sale of a Brighton property which he bought for $1.35 million, and sold for $2.35 million 18 months later.

Mr Hall transformed the four-bedroom home. Picture: Supplied

Mr Hall transformed the four-bedroom home. Picture: Supplied

In the early days, Mr Hall and his wife Alicia used to brave the “dust and dirt” and live in each property during the renovations.

With two young boys, that’s no longer possible, but today Mr Hall runs his own renovation business, Overhall Your Property, alongside his flipping passion.

“I’m a visual person and to see the property go from nothing to something amazing gives me a thrill,” he said.

“It can be a bit stressful – it never stops and it’s very consuming.

“But I wouldn’t have it any other way. I wouldn’t want to do anything else.”

Mr Hall said a successful flip came down to meticulous market research and the ability to do most projects yourself.

When he bought it, the bungalow was looking a little run-down. Picture: Supplied

When he bought it, the bungalow was looking a little run-down. Picture: Supplied

But is flipping always a sure-fire cash-cow?

New analysis from CoreLogic revealed 90 per cent of flipped properties sold last year made a profit – but as house prices ease in Melbourne and Sydney this year, a rise in loss-making flipped properties is expected.

“Although the proportion of flips at a loss has declined from recent highs in 2009 and again in 2012, there has been a clear increase in loss-making flips recently,” CoreLogic’s Property Flipping Report stated.

After flipping, it was transformed. Picture: Supplied

After flipping, it was transformed. Picture: Supplied

Nevertheless, while Mr Hall agreed property prices had already cooled slightly, he said there were still plenty of opportunities to make decent money flipping.

He said lower house prices could even help flippers enter the competitive housing market.

“If you put the right product to the market and keep the purchaser in mind you’ll have no problems selling property,” he said.

“The whole idea of owning your own home and renovating it is a big Australian dream – everyone wants to own property.

“There’s definitely still a future in it.”

The house was in need of a makeover. Picture: Supplied

The house was in need of a makeover. Picture: Supplied

So how do you make it in the flipping business? Mr Hall shared his top tips for flipping success.

DO YOUR RESEARCH

“If you’re looking to buy, educate yourself on the market – entry price is the most important thing. If you pay too much getting in, you won’t make dollars and cents at the end. I read heaps of books, and really annoy real estate agents on trends and what’s going on in the market. I always hassle them because they’re pretty much three months ahead of the market – they see what’s going on in the market before it hits the papers,” Mr Hall said.

“The main thing for me is getting in at the right price. Keep an ear to the ground in your market and don’t look at 10 different suburbs, look at two, otherwise you’ll just confuse yourself.

It’s now a stylish residence. Picture: Supplied

It’s now a stylish residence. Picture: Supplied

“On my way home I always drive a different way so I can see what boards are up and what’s going on. I’m a bit nosy, but you have to be if you want to do this seriously.”

START SMALL

“I have flipped 10 different projects varying from smaller properties and apartments to bigger houses. I really built my way up from something small into property worth millions now, and the way to get into it is to start small and learn from there – I’m self-taught.”

DO IT YOURSELF

“Hiring tradies can really chop into your budget. If you can always build on your skills and learn you will save yourself a hell of a lot of money, so the more you can do yourself the better off you’ll be at the end. Always use a licensed plumber and electrician, but for example if you have someone doing rendering, hang around and learn about a trade if you’re not experienced in it, so next time you can give it a go yourself and save big money.”

Nearly nine out of 10 ‘flipped’ properties sold last year made a profit. Picture: Supplied

Nearly nine out of 10 ‘flipped’ properties sold last year made a profit. Picture: Supplied

INVEST IN A GOOD FOOTPRINT

“My strategy is always renovating what is there – I’m not a new-build man, I’m an add-value man. I try to utilise the home’s footprint to add value. You’ve got to have a bit of forward thinking in terms of what you can do with spaces.”

KNOW YOUR BUYER

“Have a target market in mind. Whether it’s a family with children or a young couple, you need to do your research and tailor your design towards the purchaser. That’s the end game – it’s not necessarily for you, it’s about getting a sale from the right purchaser who will pay the highest price.”

CoreLogic predicts a rise in loss-making flipped property this year. Picture: Supplied

CoreLogic predicts a rise in loss-making flipped property this year. Picture: Supplied

Originally Published: sunshinecoastdaily.com.au

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Slowing Housing Market Sees Capital City Values Fall Below Their Peak

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Slowing Housing Market Sees Capital City Values Fall Below Their Peak

With dwelling values now falling across most capital cities, the topic at weekend BBQs across the country might very well be, what’s next for Australia’s property market?

Corelogic’s latest models show, at least for the short-term, that values are likely to continue trending lower, with the rate of decline easing later this year and into 2020.

National housing market downturns have generally been short-lived. Although, the current downturn of 16 months is now the second longest, with the 2010-12 decline running two months longer than the current downturn.

By next month, assuming the falls continue, Corelogic says this will be the largest downturn in the combined capital city index since 1980.

There is an expectation that interest rates may move lower. This week a report from the Reserve Bank cited shifting interest rates as responsible “more than any other factor”, for weakening house prices and construction rates.

“We probably won’t see the entire rates cuts passed through to mortgage rates and the much tighter credit conditions are likely to limit any rebound in the housing market,” Corelogic said.

“Particularly given borrowers are being assessed on their ability to repay a mortgage at a much higher rate, above 7 per cent.”

SYDNEY

Slowing Housing Market Sees Capital City Values Fall Below Their Peak1

Since peaking in July 2017, Sydney’s dwelling values have fallen by 13.2 per cent to February 2019.

Corelogic says this is one of the longest periods of decline.

“With little sign that the falls will abate over the coming months, this current downturn may end up being the deepest and longest in modern times.

“This downturn is also very different to other downturns which have generally been driven by an economic contraction or higher interest rates.

“This downturn is more closely linked to a significant tightening of credit conditions at a time in which the economy continues to grow and interest rates are unchanged – despite some moderate increases for owner occupiers and larger rises for investors.”

Slowing Housing Market Sees Capital City Values Fall Below Their Peak2

MELBOURNE

Slowing Housing Market Sees Capital City Values Fall Below Their Peak3

From Melbourne’s housing market peak in November 2017 through to the end of last month, dwelling values across the city have dropped by 9.6 per cent.

“Interestingly, comparing the downturn in Melbourne to Sydney, 15 months into Melbourne’s downturn values have fallen 9.6 per cent compared to a decline of 8.2 per cent 15 months into Sydney’s downturn.

“The downturn in Melbourne’s housing market is closing in on its largest downturn of 10 per cent between 1989 and 1992 while the downturn (so far) has been much shorter than the 36 month period in 1989-92.”

Slowing Housing Market Sees Capital City Values Fall Below Their Peak4

BRISBANE

Slowing Housing Market Sees Capital City Values Fall Below Their Peak5

Brisbane didn’t experience the great upswing in property prices recorded in Sydney and Melbourne in recent years. And as such, after experiencing moderate growth the data shows Brisbane is recording a moderate decline.

Brisbane’s property values peaked in April 2018, dropping 1 per cent to February 2019.

“To date the fall is moderate however, with housing market weakness entrenched values are expected to move slightly lower or, at best hold firm, over the coming months.”

Slowing Housing Market Sees Capital City Values Fall Below Their Peak5

PERTH

Slowing Housing Market Sees Capital City Values Fall Below Their Peak5

Following the slowdown in the mining sector, Perth’s housing market has experienced an extended downturn since June 2014 when the market last peaked. Perth’s property values have fallen by 17.8 per cent since then.

“The current downturn has run substantially longer than previous downturns and it is also a much deeper value fall than recorded across previous downturns,” CoreLogic said.

“In late 2017/early 2018 it was looking as if the falls were coming to an end, however, the market has weakened further in line with weaker labour market and economic conditions as well as tighter credit conditions.”

Slowing Housing Market Sees Capital City Values Fall Below Their Peak8

ADELAIDE

Slowing Housing Market Sees Capital City Values Fall Below Their Peak8

Much like Brisbane, Corelogic says Adelaide’s growth has been moderate over recent years however, with values starting to decline over recent months.

Adelaide’s values peaked in December 2018, recording a fall over the past two months of 0.3 per cent at the end of February 2019.

“While there have been previous periods of value falls in Adelaide, they have tended to be more moderate than those recorded across the other capital cities.

“To-date the decline has been short and moderate and it will be interesting to see over the coming months whether values continue to fall.”

Slowing Housing Market Sees Capital City Values Fall Below Their Peak10

 

 

Source: theurbandeveloper.com

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SHAFSTON ESTATE, WHICH INCLUDES ONE OF BRISBANE’S OLDEST HOUSES, IS ON THE MARKET

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SHAFSTON ESTATE, WHICH INCLUDES ONE OF BRISBANE’S OLDEST HOUSES, IS ON THE MARKET

A large parcel of prestige riverfront land, which includes with one of Brisbane city’s oldest houses, is on the market.

Known as The Shafston Estate, the 1-hectare block at 23 Castlebar Street in Kangaroo Point has been the home of the Shafston College educational facility for more than 20 years.

The site features six freestanding campus buildings totalling about 2675 square metres, one of which is the heritage-listed Shafston House that was entered on the Queensland heritage register in 2005 for its historical, cultural, and aesthetic significance.

The estate was previously on the market in 2013, and property records show that the estate was last sold in 1993 for $1.8 million.

Kangaroo Point is one of Brisbane’s most prestigious suburbs. An $18.48 million sale recorded there in early 2017, for a riverfront home on almost 1200 square metres, made it Brisbane’s most expensive house at the time.

SHAFSTON ESTATE, WHICH INCLUDES ONE OF BRISBANE’S OLDEST HOUSES, IS IN THE MARKET

The property is in one of the most prestigious suburbs of Brisbane.

Herron Todd White Brisbane director Gavin Hulcombe said prestige inner-city riverfront property had been in strong demand lately due to its scarcity.

“It is unusual to have a parcel of this size, in this proximity to the city, with river frontage. Riverfront sites have been quite constrained throughout Brisbane,” Mr Hulcombe said.

“There has been a lot of interest generated in riverfront property as evidenced by a couple of recent home-site purchases.

“It is a very popular location. It is unusual to have this size block of land through this pocket, irrespective of being on the river.”

A riverfront property in New Farm, directly opposite Shafston Estate, sold in March for $7.75 million, equalling the Brisbane auction price record.

SHAFSTON ESTATE, WHICH INCLUDES ONE OF BRISBANE’S OLDEST HOUSES, ON THE MARKET

Shafston College has operated from the site for 20 years.

State government records show that Shafston House, designed by well known 19th century architect Robin Dods, was constructed in several stages between 1851 and 1904 and is an example of the Victorian gothic architecture style that was popular at the time.

According to the heritage register, it is likely the third oldest house in the Brisbane metropolitan area, after Newstead House (1846) and Bulimba House (1849-50) and a rare surviving remnant of a riverine estate of a type typical in the early development of Brisbane.

Marketed by Cushman & Wakefield, expressions of interest close at 4pm on Wednesday 10 April.

 

 

Source: www.commercialrealestate.com.au

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Council says ‘imposing’ Nudgee property needs heritage protection

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Council says imposing Nudgee property needs heritage protection

A large bungalow home in Nudgee that Brisbane City Council says it at risk of demolition or removal could be placed under a two-year protective order while its history is investigated.

The property on St Vincents Road has a large 3000-square-metre block of land and a building the council believes could be constructed in 1900.

At Tuesday’s council meeting a request for a temporary local planning instrument that would last for two years was put forward for debate.

The council agreed to write to State Development Minister Cameron Dick requesting the TLPI so they could have more time to investigate the heritage of the property.

A report made to council’s establishment and coordination committee noted the property was “currently at risk of either demolition or removal” and any subdivision of the garden “would have a detrimental impact on the cultural significance of the house” and the gardens.

The building had already seen some upgrades made to it, including a part of the building constructed after 1946, but it was believed the original building could have been constructed in 1900.

City planning committee chair Matthew Bourke said the council did not want to see the house disappear.

“Council needs more time to properly research the history of this site and determine its historical significant, as well as heritage value so it can then be put onto our heritage register,” Cr Bourke said.

“Due to the current zoning and size of the lot, there is the possibility this site may become subject to a multiple dwelling development application.”

Cr Bourke said on face value the building didn’t look like a pre-1940s house, but local councillor Adam Allan (Northgate) had raised the potential for it to be of heritage interest after conversations he had had.

“That’s why we’ve taken this opportunity to protect it, to be able to do the detailed investigation, and then assess on that information,” Cr Bourke said.

Cr Allan said the property was well-known to residents as an “imposing old home” and was originally on farmland.

“This property has remained as a beacon of a bygone era,” he said.

“Any moves to move or demolish the property would not be well-received by the growing local community and would result in the loss of an element of the heritage and history of the area.”

Independent councillor Nicole Johnston (Tennyson) questioned why the council was seeking a TLPI on the Nudgee property when many other requests she had made to protect houses in her ward were rejected.

The move from council to protect the building follows several weeks of discussion about the council’s attempt to ban townhouse and apartment developments on blocks larger than 3000 square metres in low density residential zoned suburbs.

The council is waiting for a final response from the state government on both their request for a permanent ban to be written into its planning legislation, and a temporary ban while the permanent ban is considered.

 

Source: www.brisbanetimes.com.au

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