Flip – Property Investment strategy
Flip is a common property investment strategy where you sign an agreement to buy
a property, but sell it before the settlement date for a higher price.
An example, you find a property for $400,000, you sign an agreement to settle
within a month and you put it a deposit. You then find another buyer interested
in the property and then settle the property within the 30 days for $450,000.
For the flip strategy to work well, you should be aware of following points:
Able to flip the property to someone else, normally settlement periods can vary
on each property, but it is essential for you find someone within the settlement
period to sell to, otherwise you have to buy the property, this is the most
critical factor to this strategy.
Finding a cheap property: getting a good deal when the market is doing well is
hard, but to get maximum profit a cheap property is essential.
You should also be aware of different local government constraints that could be
applicable, like stamp duty, taxes etc. You should consult your solicitor or an
professional before you trying flipping a property.