The trend of ‘flipping’ property involves buyers purchasing older homes, making cosmetic upgrades, and selling them for profit.

If you want to do well at this and make decent money in a short period of time, you need to be strategic about where you buy, how much you spend and the types of upgrades to implement.

Find out more about the ‘buy to renovate’ strategy:

Flipping property in 2024

If your goal is to make money from a fast renovation project, the first step is to do your research and be adequately prepared.

You need to know how much you can spend and make sure you have access to the funds. Think about how much work you can do yourself and how much you will outsource to others, and be realistic about what’s achievable. Don’t forget to find out which tradespeople are available in the area, and what the wait times to access their services are.

Just as importantly, you’ll need to explore how much a renovation and upgrade will add to the property’s value. It needs to be worth the time and effort that you put in, and you don’t want to be left
with a stunning home that won’t sell.

Be a savvy buyer

To get the most out of flipping a property, the home needs to be structurally sound and not in need of major upgrades.

A property with ‘good bones’ won’t have huge problems with plumbing, waterproofing, electricity, rising damp or walls that need replacing. Making changes will cost less because you don’t have to reinstall expensive internal systems or spend a lot of money on upgrades that don’t impact the look and feel of the property.

Before you buy a home to renovate and sell, request a building inspection. This will save you from any nasty surprises.

Another factor to check is heritage listing; this can make renovating extra difficult.

Minimum effort, maximum achievement

Look for homes where you can create a significant impact with as little work as possible. The ‘sweet spot’ is dated homes that have been well looked after.

Properties that only need a fresh coat of paint, some new flooring and a fresh kitchen and bathroom will be the easiest to upgrade and sell for profit. If you can do as much of the work as possible yourself (provided you know what you’re doing), it will cut back on the current issues surrounding the supply of skilled labour.

Don’t spend too much when you renovate; if you want to buy a home and sell it quickly, there is no need to purchase top of the range tiles or tapware. Go for solid, reliable products that match the feel of the home, and keep things neutral to appeal to a wider range of buyers.

Final tips

Here are some more tips if you’re planning to renovate for profit:

• Decide if you will live in the property while you renovate it or if you can afford not to
• Don’t rule out a renovation project in a regional area, just make sure to do your research
• If you’re working with your partner, be clear on who will take responsibility for what
• Aim to get some builder or tradespeople quotes before you make the purchase
• Have a backup plan in place if something happens and you can’t sell when you want to
• Speak to a local real estate agent and let them know you’re looking for a fixer-upper and what your criteria are.

Ready to flip a property? Get in touch with your local Professionals representative today.