I a regular reader and minimal poster on this site and have a question: I want to try and buy a run down apartment and flip it within 12-18 months, has anyone had any recent experience with flipping an apartment so soon or is this type of strategy really only limited to houses where there is more scope to improve?
Can you flip an Apartment so soon?
- Thread starter melbkid
- Start date
Hi melbkid
I did a series of these in 2007/09 in Melbourne CBD. Shortest timeframe 6 months 80k profit, longest timeframe 14 months 110k profit.
Bought good shells from volume based agents, did cosmetic and functional renos, presented exceptionally well then sold. Also the market was on my side. Haven't done these for a while.
If you indend to do the same go for unique floorplans and unique features that are being sold 'in bulk' with all the other apartments. Not easy to find but that's where the flip money is.
Good luck
I did a series of these in 2007/09 in Melbourne CBD. Shortest timeframe 6 months 80k profit, longest timeframe 14 months 110k profit.
Bought good shells from volume based agents, did cosmetic and functional renos, presented exceptionally well then sold. Also the market was on my side. Haven't done these for a while.
If you indend to do the same go for unique floorplans and unique features that are being sold 'in bulk' with all the other apartments. Not easy to find but that's where the flip money is.
Good luck
Yes you can
See this. Not an apartment, but a house.
Buyer purchased well, paid around $385 k in October 2014 and it is going to Auction in Jan 2015. I expect this will be sols for around $550 - $600 k. An excellent example of buying well and manufacturing equity/profit. This was a cosmetic reno .. I'd say costing $25000 - $50000
The key is to buy well. You make your money when you buy.
http://www.realestate.com.au/property-house-qld-algester-118735959
See this. Not an apartment, but a house.
Buyer purchased well, paid around $385 k in October 2014 and it is going to Auction in Jan 2015. I expect this will be sols for around $550 - $600 k. An excellent example of buying well and manufacturing equity/profit. This was a cosmetic reno .. I'd say costing $25000 - $50000
The key is to buy well. You make your money when you buy.
http://www.realestate.com.au/property-house-qld-algester-118735959
If you want to look up a professional flipper who flips out if he hasn't flipped in 12-18 days, search Flipping Vegas.
Completed unrelated to you and the Oz market of course, but good for a laugh some of the stuff this guy comes up with, if, during your journey you feel like time has stood still.
Completed unrelated to you and the Oz market of course, but good for a laugh some of the stuff this guy comes up with, if, during your journey you feel like time has stood still.
I love that show.
Gee big results, are they nett results after taking into account stamps, interest incurred etc?? I was hoping to aim around a 25-50k profit after a 12-18 month flip, again depends in the buying but was wanted to get some some experience in doing something on a smaller scale before doing it with some land.
What's everyone's thoughts on the suburbs I'm looking at ?
I did a buy,Reno + Hold on an apartment.
Bank Valuation after 14 months = 106k Above Purchase Price, approx 29% increase.
Converted 3 bedroom 2 bathroom into 4 bedroom 2 bathroom, internal area approx 130mtrs2
Got lucky tho, many things aligned that I hadn't planned for.
We bought off a failed auction, on a listing that was stale.
Owner was in a hurry to sell, etc.
Area got a big boost from shopping centre upgrade.
I looked for a while for another one of these, but found the Risk was greater than doing the same thing with a house+land.
Bank Valuation after 14 months = 106k Above Purchase Price, approx 29% increase.
Converted 3 bedroom 2 bathroom into 4 bedroom 2 bathroom, internal area approx 130mtrs2
Got lucky tho, many things aligned that I hadn't planned for.
We bought off a failed auction, on a listing that was stale.
Owner was in a hurry to sell, etc.
Area got a big boost from shopping centre upgrade.
I looked for a while for another one of these, but found the Risk was greater than doing the same thing with a house+land.
Remember to get accounting and tax advice
Capital gains tax may come into play if you don't live in the property - and also if you do, should the tax office deem that you've sold it as a business venture. Best to speak to your accountant before making a move.
Good luck!
Capital gains tax may come into play if you don't live in the property - and also if you do, should the tax office deem that you've sold it as a business venture. Best to speak to your accountant before making a move.
Good luck!
I've seen flipping strategies work quite well or all sorts or properties, but the more common ones tend to be houses rather than apartments, probably because there's often more scope to improve a house over an apartment.
I've also seen a lot of people make virtually no money from flipping, or they hold onto it rather than selling because there isn't enough profit available. It's not as easy as it sounds and you have to have a very good understanding of the costs involved and what the property will sell for.
I've also seen a lot of people make virtually no money from flipping, or they hold onto it rather than selling because there isn't enough profit available. It's not as easy as it sounds and you have to have a very good understanding of the costs involved and what the property will sell for.
I'm not an expert in this area but could not see why could not profit very well. Like any investment though it's about buying well and using your skills, experience and knowledge to get the desired result.
What renovation experience do you have? Remember working within an apartment is going to add some complexities such as noise restrictions, vehicle access, lifts if applicable, working with building maintenance.etc
As Peter pointed out it is not a sure fire win the renovation game. From all the material I have read the usual point of failure seems to be people get emotionally attached and start spending based on their tastes as opposed to the actual figures.
In regards to the areas you mentioned, these are all being heavily developed so what is going to seperate your project. Why would someone pay top dollar for your place when they can buy something new or off the plan and save on stamps (I do not like OTP but many do). These are just some things to consider.
What renovation experience do you have? Remember working within an apartment is going to add some complexities such as noise restrictions, vehicle access, lifts if applicable, working with building maintenance.etc
As Peter pointed out it is not a sure fire win the renovation game. From all the material I have read the usual point of failure seems to be people get emotionally attached and start spending based on their tastes as opposed to the actual figures.
In regards to the areas you mentioned, these are all being heavily developed so what is going to seperate your project. Why would someone pay top dollar for your place when they can buy something new or off the plan and save on stamps (I do not like OTP but many do). These are just some things to consider.
