The renovation flip is still doable: Cherie Barber

The renovation flip is still doable: Cherie Barber
The renovation flip is still doable: Cherie Barber

House renovators hoping for a quick profit run the risk of underestimating the cost of the flip.

But Cherie Barber, a professional renovator who runs a company providing renovation courses, remains optimistic about buying for renovation and sale.

Barber says it is always possible to renovate for a profit.

"You cannot talk about a single Australian market," she recently told The Australian Financial Review.

"There are more than 4000 suburbs and as many markets."

She says renovating to sell or hold depends on individual markets, which means analysis of the costs and benefits of the property, street and suburb.

Research suggest about 6 per cent of residential properties sold in Australia sold again in less than two years.

Across the country, CoreLogic RP Data noted homes that resold recently at a loss had an average length of ownership of 6.0 years.

Across resales of homes throughout the March 2015 quarter, those homes that were held for only a short period of time proved to be much more susceptible to loss.

Although home values increased over the past 12 months, 13.0% of owners who purchased and resold in the same year recorded a gross loss.

Any flip investment needs to estimate value the time involved and also the risks on the costs of acquisition, holding, renovating and selling.

Cherie Barber says she can complete a 10-day complete makeover of a house that would take other renovators between six and 12 months at double the cost.

She suggests not to pay the invoices in full until you are 100% happy with the works being completed.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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