Antiques Roadshow has been my Mum’s favourite show for a number of years now. At first I was confused as to how she already had an interest in TV programs that were meant for people 30 years her senior, but I soon found myself pulled into the world of valuations. Seeing how one small clock or teddy bear or set of draws that had been restored and brought back to life could reach almost double what it had been worth good my mind ticking. On a much larger scale, this could be compared to what a lot of families do now, known as flipping homes. This refers to buying a house that might be a little worse for wear and then renovating it to increase the value so that it can be sold on for a huge profit. It all sounds a bit too good to be true but let me take you through different stories which goes to show that with the right planning, it can become a reality. Start your house flipping life with the best home loan rate from Newcastle Permanent Building Society.
1. PETER AND CLAUDIA DMITROVIC
Peter and Claudia Dmitrovic are a couple who have made a part time go of flipping houses. After purchasing their first home, the couple had no intention of flipping it however as they had bought a cheaper home due to financial strain, the opportunity fell into their laps. Doing nearly all of the handy-work themselves, the couple’s most successful flip had them turn their $460k Melbourne home into a million dollar property.
2. TOM HALL
With over 16 years’ experience, master home flipper, Tom Hall worked on his first property every moment he had to increase its value and appeal on the market. Not only did he flip the home from $124k to $265k, but he also ignited the passion within him to make a career out of flipping homes and has now made profits of more than one million dollars in a single sale. Flipping a number of properties requires secure home loans. Visit Newcastle Permanent to view some of the most competitive rates in Australia with no ongoing fees.
3. CLAUDINE NOVAK
Claudine Novak is another part-time property flipper after she made a considerable profit following the sale of the first home. Selling on her most profitable home saw Ms Novak make a $200k profit even after costs from the bungalow in Victoria. After spending nearly as much on renovating the home, Ms Novak advises that it’s important to know the expenses before you buy as she believes her profit could have been a lot higher, had she been more cost effective.
4. WAYNE AND JAN
Perth couple Wayne and Jan bought their first slip property in December 2013 for $420k. After spending $165k on a complete cosmetic renovation, their home was bought for $750k before the auction date. Even through a number of ‘first time hiccups’ this couple was still able to reap a $165k profit. Running into problems is the last thing you want when flipping a home to sell. Extra problems means extra money and so ensuring you have the best home loan will make your sailing a lot smoother. Newcastle Permanent offers a comparison rate of 4.88%PA so that you don’t get bowled over by hidden costs and fees.
Rachel from Brisbane threw herself into the property market with the purchase of a three bedroom home for $400k in December 2012. After spending an additional $100k on renovations, Rachel was able to sell it on for $650 giving her a profit of $150k in May 2013.
Whether you’re selling on your grandpa’s old furniture or looking to sell a home, you can almost guarantee yourself a profit if you make all the right moves. Flipping homes requires a lot of thought, planning and awareness of the construction and design industry. If you’re willing to put in the hard yards and make tough decisions, you can come out of your ‘flip’ with a huge profit and a hunger for more. Give yourself the head start you need with a home loan from Newcastle Permanent today.