The flip SIDE

Real estate agents might say it’s all about the location, but how do you know when you’ve found the right house to do up?

- Catherine Steel

While the potential profit of buying and restoring a house, then swiftly selling it – house flipping – may appeal, it’s wise not to rush into it. Research into the market is paramount, but so is selecting the right house. While the first property you view might seem suitable, it may not be the best buy.

Determining whether the house is worthwhile is more likely to pay off in the long run. In contrast, buying one that requires more work than it’s worth could be a decision you regret.

Where to buy?

Let’s start with the location, as this will impact the type of house you buy. When choosing an area, look for local amenities – are these the type that will attract a specific type of buyer? If it’s a safe neighbourhood, close to good schools, parks and attractive retail, this will likely suit young families ready to settle.

Suburbs near an airport or motorway, however, distanced from schools and community facilities, may not appeal. Study an area and list the factors that work for and against it; this will give you a sense of what type of person or family it would appeal to. Keep the potential buyer in mind when you redo the house.

Find out if many houses sell in that area. You can buy and create a beautiful home in any suburb, but if there is no demand for the location it will be hard to sell.