Property flippers still making money
Nine out of 10 flipped properties made a profit in 2017.
Property flipping as a trend has somewhat fallen out of fashion, a CoreLogic report found. Over the year to June 2017, only 5.7% of properties sold across the combined capital cities were flipped within one to two years of purchase. This was down from 11.3% in 2002.
However, property flipping is on a slight upwards trajectory. According to the report, the proportion of properties flipped within one to two years rose 0.5% over the past five years, while the proportion of properties flipped within one year rose 0.2%.
Property flipping has remained an effective strategy for those who choose to employ it. The report found that 89.1% of properties sold within one year of purchase were sold for a profit, while 89.9% of those sold within one to two years saw a profit.
The report also found that house flipping was more prevalent in Eastern states, with the highest rate of flipping occurring in Sydney. 6.8% of properties sold in the city were flipped within one to two years of ownership.
Sydney was also the most profitable capital for house flippers, with 94.3% of properties selling for a profit within one to two years of purchase. Melbourne was the second best capital for house flipping, with 93.7% of flipped properties selling for a profit. Darwin was the least profitable capital, with only 29.7% of flipped properties selling for a profit.
- Mortgage rate hikes continue, with UBank and Virgin Money raising some rates by 20 basis points
- Ask Finder: Can I get a mortgage offset account in my business’s name?
- CoreLogic’s December figures confirm 2018 was a very rough year for the Australian property market
- APRA to remove interest-only home loan speed limits
- All of December 2018’s out-of-cycle rate changes