Renovate For Profit: How to Flip a House
Don't let your house-flip dream flop: a renovate-to-sell expert reveals what to look for and how to appeal to buyers
Do you fantasise about giving up your job and spending your days buying, renovating and selling properties for a tidy profit? Despite what television shows might tell you, it’s not as easy as it looks. But it can be done. We asked a renovate-to-sell expert to reveal the secrets to house-flipping success.
Where should you start?
- Research the area that you are looking to purchase in and know your target market – in particular, the facilities, features and extras that buyers in the area will expect.
- Be prepared for the unexpected during works. Things can – and do – arise when you’re renovating, particularly when you’re dealing with an older or heritage property.
What are the main things you look for in a renovate-for-profit property?
- An attractive facade and potential for good street appeal: When you’re trying to lure buyers, first impressions really do count.
- A versatile layout: This lets you maximise the space without having to fork out on a costly extension.
- A unique feature: One of our recent projects, for example, had an internal courtyard. Another had a moving bookshelf with a secret door into a storage space and custom-made stacker doors that sectioned off the second living space to create a fourth bedroom.
What are you willing to compromise on?
- Land size: A small plot isn’t a big issue: the key is to make the best use of the space you have.
- Asbestos: People are often scared away by asbestos, but it’s such a common issue and it’s now quite cost-effective to have removed.
- Outlook: While it’s great to have something beautiful to look out to, a view is not necessarily a deal-breaker for buyers.
The kitchen in a flip-for-profit property before works
How can you set yourself up for success?
How can you set yourself up for success?
- Set a budget and stick to it: Every dollar you go over your budget is money taken away from your end profit. And don’t forget to include a 10 percent buffer to cover hidden surprises during the renovation, plus some funds for styling so you can create an image for potential buyers of what it would be like to live in your property.
- Research the market: Think about when is the best time to put the property on the market. For example, try to avoid periods when there are lots of public holidays, such as Easter and Christmas.
- Pre-plan: The better you plan ahead of time, the more time you will save during works. Try to have as many of the product and finish details selected and finalised before trades start, so they can give you accurate timelines for completion. This also ensures there’s no time wasted while you make renovating decisions (and possibly change your mind).
The kitchen after works
- Kitchen and bathroom design: Kitchens and bathrooms sell houses. Make sure your kitchen is adequate for the size of the home you are renovating. For example, a tiny kitchen isn’t going to cut it in a four-bedroom, three-bathroom house. And be sure to include enough in your budget to create a contemoprary bathroom that performs efficiently.
- Don’t forget the facade: The exterior of a house is people’s first point of contact with it, so make sure yours delivers. Refresh a dated or shabby facade with a new coat of paint, fresh landscaping, a new front fence and a stylish letterbox.
- Outdoor space: Indoor-living is huge in Australia. Look to include space in the layout (and funds in the budget) for an appealing outdoor entertaining area if possible.
- Hire experts for specialist jobs: It is always tempting to cut costs by completing work yourself. But for a complicated or specialised job, you’ll end up saving time and money by calling in an expert who will quickly do it to a high standard.
Where can you save?
Tiles: You can save money by making simple tile selections. A simple 600 x 300-millimetre or 600 x 600-millimetre tile is the cheapest to buy and also the quickest and most cost-effective to lay. Services: If you’re reworking the home’s layout, try to keep plumbing and electricals in the same spots. Moving them can make a big dent in your budget.5 Biggest Renovation Budget Blow-Outs (and How to Avoid Them)
Tiles: You can save money by making simple tile selections. A simple 600 x 300-millimetre or 600 x 600-millimetre tile is the cheapest to buy and also the quickest and most cost-effective to lay. Services: If you’re reworking the home’s layout, try to keep plumbing and electricals in the same spots. Moving them can make a big dent in your budget.5 Biggest Renovation Budget Blow-Outs (and How to Avoid Them)
What are your golden nuggets of wisdom?
- Don’t over-style: You want to style the home just enough to give buyers a clear sense of the lifestyle they can enjoy in the property, but not so much that it’s cluttered. Think one striking artwork or an attractive occasional chair.
- Stick to timeless neutrals: While you might love those bright-green splashback tiles, they’re probably not everyone’s cup of tea. Keep it simple and neutral to appeal to the greatest number of potential buyers.
- Add greenery: Flowers and potted plants make a space feel fresh and inviting, and bring a touch of nature inside.
Your turn
If you have ever renovated for profit, what was the greatest tip you picked up? Tell us in the Comments below, save your favourite images, like this story, and join the conversation.
More
Want more advice from a renovator-for-profit? Don’t miss 8 Ever-Popular Exterior Looks… and How to Create Them
If you have ever renovated for profit, what was the greatest tip you picked up? Tell us in the Comments below, save your favourite images, like this story, and join the conversation.
More
Want more advice from a renovator-for-profit? Don’t miss 8 Ever-Popular Exterior Looks… and How to Create Them