Is Property Flipping Really A Viable Strategy?

Host: Do you want to start us off on this one, because obviously as somebody who’s actually lived in the property you’ve got a better idea of what needs to be done and what works about what doesn’t work about it and somebody who hasn’t lived in it.

Paul: Yeah look absolutely. Straight away I think you’ll be able to see the pros and cons you probably have to do some quick sums of math on what the renovation would cost. For me it comes down to really the fact the matter though is that most properties especially if you’re buying in Sydney. Vaucluse for the freestanding housing market, from my knowledge has dropped a touch over 10 percent in the freestanding housing market last 12 months unit market is about flat. So right away there I’d say that’s unless you’ve got an extremely good margin buying that property I wouldn’t expect that market to be moving anywhere north over the next one, two or three years and the time you flip that property. So I hope your friendship will out last that.

But I think for me the JV, the joint venture side I mean the first mention there is that they’ve never flipped the property before. Truly to cut your teeth in something the Vaucluse postcode which would be I would assume quite pricey. I’d like to see them probably look at some scenarios and be a little bit more affordable and low risk and really understand the in’s and out’s and nuances of a joint venture before they start to depart their big money on that type of project.

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