Flipping a house? Do your homework

There is no denying flipping houses is a risky business, especially if you don’t know what you are doing. Even then, there is no guarantee you will make a substantial profit. Before you head down the buy, renovate and sell road, do your homework. Know the property market and identify the key areas that will improve in economic and liveability terms.
Here are some tips for people who plan to renovate for a profit.

Don’t overspend
If you are planning to sell the house as soon as the renovation is done, avoid overspending. While it’s good to have quality products there is no point in purchasing extravagant products and fixtures if you are planning to sell the house for profit. Instead, use mid-range products – quality items that won’t break the bank. Make smart decisions and spend time researching products and comparing quotes.

DIY
The more work you do yourself the more money you save, which will keep your overheads down. Leave the big stuff like electrical, plumbing and tiling to the professionals. There are some things you can do yourself including painting, landscaping, changing light and tap fittings and replacing doors and cupboards.

Know the market
Finding the right house to flip can be like finding a needle in a haystack. Don’t rush into buying a property. Be sure to research and familiarise yourself with the real estate market before diving in headfirst. When buying a property to renovate, don’t blow your budget – aim to buy below market value. Work with real estate agents to find vendors who are motivated to sell. You are more likely to purchase for a good price if a vendor has to sell quickly.

Tip: Research real estate agencies and find the right one for you. The team behind the marketing and selling of your property is as important as the renovation itself.

What buyers want…
Renovating to sell? Cater to your audience. A recent Master Builders survey of its members shows that the preference for renovating kitchens, bathrooms and decks are a direct reflection on lifestyle choices. These three central areas of the home are pivotal areas for living and socialising. Survey participants indicated these are the top things they look for in a renovation project…

Bathrooms: Freestanding showers topped the list of amenities expected in a bathroom project, while freestanding bathtubs are also important. Technology such as smart lighting and intelligent toilets are also favourites for the bathroom.

Kitchens: Island benches are the most sought-after feature in the kitchen, while butler’s pantries have also become popular. Smart technology and appliances such as wine coolers, built-in coffee machines and smart fridges are important. Other features regarded as important include solid timber bench tops, gas appliances, glass splashbacks, tub sinks, top quality appliances and hardware.

Appliances: When it comes to appliances, top quality is still sought-after. Stainless steel and quality brands are regarded as good value because of price reductions.

Did you know?
The recent Master Builders survey found 25 per cent of people renovate their bathroom, followed by 23 per cent who add on a deck or patio, and almost 10 per cent who prefer a kitchen.