9 out of 10 properties flipped for profit in 2017: CoreLogic
renovation

9 out of 10 properties flipped for profit in 2017: CoreLogic

9 out of 10 properties flipped for profit in 2017: CoreLogic

by Sasha Karen | January 18, 2018

Flipping properties in 2017 proved to be a low-risk venture with the overwhelming majority of properties being sold for a profit, according to a new report by CoreLogic.

properties flipped for profit in 2017, property market, property investment

According to the Property Flipping Report, which looked at the last 12 months to June 2017, there were 3,861 and 16,749 properties sold in less than a year and within one to two years respectively, accounting 1.3 per cent and 5.7 per cent of resold property.

For less than a year, the percentage of profitable property was at 89.1 per cent, and between one to two years at 89.9 per cent.

The process of flipping properties is also becoming slightly more popular in capital cities, with a 0.6 per cent rise in property flipped in less than a year and 0.2 rise in property flipped between one to two years compared to 2012 data. Regional areas saw rises of 0.2 and 0.5 per cent over the last five years.

The report also looks at each state and territory:

NSW

The most popular area for flips for less than a year and from one to two years was the Illawarra region, with flips less than a year at 2.4 per cent of all resales and from one to two years at 8.7 per cent, while the Southern Highlands and Shoalhaven regions saw the most profit, recording no losses for flips less than a year, and 0.9 per cent from one to two years.

Victoria

The Mornginton Peninsula was the most popular area for flips less than a year at 1.8 per cent of all resales, while south-east Melbourne proved to be the most popular for flips between one to two years at 7.8 per cent. North-west Victoria, Warrnambool, and south-west Victoria, were the most profitable area for flipping less than a year with no losses recorded, and MorningtonMornington, VIC Mornington, QLD Mornington, TAS Peninsula with only 1.8 per cent of flips at a loss recorded.

Queensland

The Gold Coast proved to be the most popular area for flips less than a year at 2.2 per cent of all resales and from one to two years at 7.9 per cent of sales. Ipswich saw the highest profits for flips less than a year with 7.3 per cent of flips at a loss, while the northern Moreton Bay area was the most profitable for flips from one to two years with 4.4 per cent of losses recorded.

South Australia

The South Australian outback was the most popular area for flips less than a year at 1.6 per cent of all resales, while western Adelaide was the most popular area from one to two years.

The central and hills regions of Adelaide and outback South Australia were both the most profitable for flips less than a year with no losses recorded, while South Adelaide was the most profitable from one to two years with 8.6 per cent losses recorded.

Western Australia

Inner PerthPerth, TAS Perth, WA was the most popular area for flipping less than a year at 1.3 per cent of all resales, while north eastern Perth and the Wheatbelt area were most popular for flips from one to two years at 3.9 per cent respectively.

Western Australia was one of the worst states or territories to make a profit flipping, with the most profitable area being south-east Perth for less than a year at 19.4 per cent of flips recording a loss and the Bunbury area with 18.9 per cent.

Tasmania

The Launceston and north-east Tasmania areas were the most popular for flipping less than a year at 1.5 per cent of all resales, while south-east Tasmania was most popular for flips from one to two years at 7.1 per cent.

West and north-west Tasmania offered flippers the most profit for flips less than a year, with 8.8 per cent of flips recording losses, while Hobart was the most profitable from one to two years at 6.8 per cent.

Northern Territory

Along with Western Australia, the Northern Territory was another state or territory that performed poorly in terms of flips. Flips were more popular in regional NT for less than a year at 4.7 per cent of all resales, but Darwin was more popular from one to two years at 1.9 per cent.

Neither Darwin or regional NT proved overly profitable for flips; Darwin was more profitable for flips less than a year at 35.3 per cent losses recorded, compared to regional NT’s 50 per cent recorded losses. However, regional NT was more profitable for property for one to two years at 40 per cent compared to Darwin’s 70.3 per cent.

Australian Capital Territory

The ACT saw 1.5 per cent of all resales as flips less than year and 6 per cent from one to two years, and saw losses in 11.9 per cent of flips less than a year and 6.8 per cent from one to two years.

share the article

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web