When we talk about ‘flipping’ we are referring to people who resell a property within two years of buying it, with the goal of making a profit. Common strategies include buying in growth suburbs and taking advantage of rising house values or adding value to a property through renovation.
Corelogic’s research found that - nationally - 89.1 per cent of properties that resold within one year and 89.9 per cent of properties that resold within two years made a profit in 2017. However, it’s important to note that the Corelogic data doesn’t reveal the level of profit achieved by sellers, nor does it include costs associated with buying and selling such as stamp duty, agent commissions and solicitor fees.
Whilst the overall figures paint an impressive picture for market performance in 2017, there are many factors homeowners should take into account going forward. With a cooling market in many regions and the banks continuing to crack down on investor lending, the level of ‘flipping’ is unlikely to remain as profitable throughout the next 12 months. Although, this shouldn’t discourage prospective property investors - as the old adage goes, it’s not the timing of when you get into the market that’s important, it’s time spent in the market.