I’ve just got home from a blissful four weeks away and I was back on the airwaves this week following the release of a CoreLogic report on the success of flipping. The huge media interest in the report certainly reflects Australia’s love affair with renovation – and confirms what we at Renovating For Profit already know: you can make money in any market as long as you know what you’re doing. That’s the key.

Here are just some of the stats in CoreLogic’s Property Flipping Report, which looked at the 12 months to June 2017:

• Nationally, the vast majority of properties (almost nine in ten) in 2017 were flipped for a profit. This included properties that are renovated and re-sold within a year, or within one to two years of purchase.
• The highest rate of renovation AKA flipping was in Sydney, where 6.8 per cent of property re-sales over the year were flips between 1 and 2 years of property ownership. Regional Queensland (6.6 per cent) and Melbourne (6.4 per cent) also recorded a higher percentage of property sales as flips.
• Sydney and Melbourne were the most profitable capitals for flipping.  Regional NSW (94.5 per cent) recorded the highest percentage of flips at a profit within one to two years of purchase, followed by Sydney (94.3 per cent) and Melbourne (93.7 per cent). All trended above the national average of 89.9 per cent.

These are certainly glowing stats to kick off a new renovating year with and should silence the doubters! However, without knowing the detail (I assume the “profits” don’t account for people’s personal financial situation – acquisition and holding costs, tax liabilities, whether it’s an investment property or PPOR, etc), I prefer to interpret the stats as an overall positive trend. But it’s no surprise to me that in virtually every place in Australia, people are making money from renovation and flipping property. Those gems are just tougher to find in some places.

I’ve always maintained that it’s possible, even in flat markets like Perth, as long as you do all your research, crunch the numbers and follow all the Renovating For Profit due diligence rules.

In hot markets like Sydney and Melbourne, sure you get the added benefit of market rise, which can really ramp up the profit, but that’s just the cream on top.

As long as you buy, renovate and sell in the same market, flipping for profit is absolutely possible. There’s not a single property I haven’t made money on in 25 years of renovating, and that’s through every property cycle, from rock bottom to roaring hot. You just have to be prepared to put in the hard yards to find the right property that makes the numbers stack up.

And that’s what I teach in my Renovating For Profit course: the precise steps, due diligence and renovation formulas you need to rigidly follow in order to profit from your hard work.

Hear it from our students…

My students regularly share their stories of success with us on any renovation that they complete. Serial flipper Fiona Bouchier made quite a media splash before Christmas when news got out of her three highly profitable flips since 2014 in Melbourne. As it turns out in the CoreLogic report, her chosen area of the Mornington Peninsula proved Victoria’s “most profitable region for flipping”. She certainly did her research, along with so many other of our students who renovated in this hot spot! You can read her story here.

And up at the Gold Coast (also highlighted in the report as a flipping hot spot) students Melinda John and Daniel Fulthorp are reaping the rewards of their due diligence, with $100,000 profit on their first renovation flip, and similar expectations on the property they’re currently renovating. Read their story here.

So if you’re not already part of the RFP family, come along to one of my FREE events and I’ll explain how my students avoid the common pitfalls of novice renovators and use my formulas to find the right properties to renovate and profit.

See you there!

Cherie X

If you’d like to learn more about my Cosmetic Renovations For Profit Course and learn how you too can renovate for profit, click here.