Flipping and renovating in Australia can be an effective way to generate wealth, especially if it’s done strategically.
In fact in 2016, Roy Morgan’s research showed that over 8.4 million Australians worked on a home improvement project, and this number is continually growing.
I’ve often argued that the Christmas season is the best time to get flipping and this year market changes make the holidays ahead even more ideal for renovations. Here are my five tips for highly profitable, strategic renovations and flipping over Christmas:
1. Slash those dollar signs
As easy as it is to splurge on luxury housing features such as a spa, a marble bench top and that four-car garage, it is far better to have a low-cost approach.
Consider the necessary house features most home buyers want and act accordingly. Thankfully, the frugal approach to flipping is much easier to achieve during Christmas, when it seems bills, endless functions and increased spending on necessary (and unnecessary) presents arise.
2. Make research your friend
This is so important for anyone thinking of embarking on a flipping project, and even more so for beginner level flippers. When it comes to doing a flipped project, the quality of research will often be a key factor in determining the success of the property.
Hence, Christmas is an ideal time for flipping and renovating research as this is when most of us get that much-needed leave period, as well as an abundance of public holidays to complete necessary research.
3. Read the market
It’s important to understand the market in terms of trends, changes and timing. Thankfully for those hoping to renovate over Christmas, the renovation value will outweigh initial costs incurred.
Flippers have been hitting it out of the park in the DGI community as a result of less competition with typical sellers wanting to close a deal well before Christmas.
4. Find a power-house team
From plumbers, to carpenters, electricians and even the painter, make sure your team is equipped and accomplished. Consider various tradesmen and familiarise yourself with the work they produce.
Ask to see examples of previous work. An important consideration is also value for money! As tempting as it may be to pay an easy $200 dollars to a friend to paint the spare bedroom, this cheap deal will often show.
A bonus of flipping during Christmas is that these high qualities teams are more often readily available due to the quieter work-loading during the silly season.
5. Keep it real
Before, and throughout the entirety of the flipping process, be sure to have a realistic estimation. Chat to professionals as well as friends and family who have been through the flipping process so you can gauge what is a sensible budget.
Preparing a feasibility report and allocating a buffer are essential steps to avoid unpleasant surprises if certain jobs do push up the budget. This process of discussing with others is made much easier over Christmas too,