Renovating for profit? You’re not alone and have come to the right place! Thousands of Queenslanders are in the exact same boat as you. You have found yourself a ‘fixer-upper’ that’s just screaming out for a fresh coat of paint and an interior (or exterior) revamp, you want to make the purchase, flip the property and come out the other side with a fat tack of cash. Achievable? YES! You bet! Here are some top tips for how to buy and renovate houses for profit in Queensland.
How to purchase a home when renovating for profit
It’s not just a case of buying the worst home in the best street. “House flipping” involves a hell of a lot more than just prettying up the garden and changing the railings on the balcony (although that’s certainly a part of it!). You need to make a number of careful considerations before you jump in feet first. Here’s what you need to know…
Purchase below market value
A lot of the sellers who you’ll be looking to work with are probably in a desperate position. Their house isn’t great, it may have been on the market for a while and they’re looking to get out. Offer a price that’s below market value and see what you get in response as feedback from the Agent! . They might just be keen enough to take it!
While we’re talking about money, don’t make the mistake of over-congratulating yourself on what your potential sales figures will be. It’s important to be as realistic as possible. Do your research and talk to the experts in the area to form a good impression about how much profit is actually achievable.
Spot the potential!
Look for ways to increase street appeal and tackle the two major zones of the house (kitchen and bathroom). There’s no need to spend an incredible amount of time here. A lot of somewhat superficial fixes can be done over the course of the first month or so.
You’ll want to do as much as is humanly possible yourself to keep costs down. Educate yourself and make some industry connections to see how you go getting your renovations for profit done on the cheap (but not the nasty!).
Its all about location, location, location!
Depending on where you’re making your purchase in Queensland, you’re more than likely to come up against a number of barriers. Some regions are on ‘struggle street’ as they attempt to recover from the death of some of the local mining industries. It’s important to get your head around the top areas for investment. There is a plethora of articles on different sections of the Queensland Property Experts site so make sure you do your due diligence when it comes to pumping your hard-earned cash into the right area.
You’ll want to purchase in a growth area so that you can make the most of the surrounding boom when it comes time to sell your hard work on. Look for areas that have the infrastructure, or the capacity to grow it, as well as local amenities like shops and good schools. These will be attractive to buyers and will make your home that much easier to sell once you’ve renovated for profit. Basically, you want to attract the best kinds of buyers so think carefully before you hand over your deposit and sign your life away on the potentially high mortgage.
And remember, if it seems to good to be true… It usually is!