What is property flipping you may say? This is where you buy a property with the aim of improving it and selling it at a profit within a very short period of time. While there are many different ways you can add value to a property, my friend Neil specialises in one bedroom apartments, so read on for more of Neil’s story!
Neil has been my friend and client for many years since we met when he was building investment properties, nearly twenty years ago. His super power was adding maximum features for minimal cost to the point where he was asked to come and work for more than one Perth building company to show clients how to do the same.
Neil took out top WA New Homes Consultant (5 years in a row) because of his attention to detail, exceptional customer service and practical approach… where other consultants had a 37% non conversion rate, Neil’s was only 4%! This is a man who knows property, knows what works, and knows what people want.
However, Neil got bored! He left the building game… or did he?
You’ve got it. No he didn’t… he just found a new challenge, property flipping!
What Neil does now is he looks for run down single bedroom apartments, typically under 50m2 floor area, and well located with inner metro or coastal Perth. Often they have had a problem tenant. Now, this is the key… Neil says you make your money when you buy.
The next part of the process is to get in and out quickly. Neil will have a full renovation completed within 7-12 days, and has leveraged supplier systems and trades to achieve this. A typical fit out will have the entire interior removed on the first day. All cabinets, flooring and fit out are identical for each unit so he knows exactly what his budget will be.
Cupboards, flooring, feature walls, and electronics are all sourced from suppliers like Bunnings, Ikea, local flooring shops and even Temu (see those snazzy light fittings… $12 each)! He utilises installation services from suppliers such as Bunnings for the cupboards, and the same for the provider for the floors. Facebook marketplace provides some amazing deals as well (that is where the plantation shutters came from for the pictures below).
Now get this… a typical full unit renovation will cost Neil around $12-16K. His profit on each unit has varied, some he ‘only’ made $86K, and his latest has made $201K.
Not bad for 7-12 days of work!
And, because this model works so well, Neil chooses to limit his projects to one or two per year, and does not need to work in any other field. Neil made the decision long ago to work smarter, not harder… and this allows Neil to travel and have lifestyle choices that are rare in our modern world of 9-5.
Neil has been flipping profitably for the last five years during the Perth property boom, and is now excited to see what will follow in the wake of the Federal Governments 2026 Capital Gains tax and Negative Gearing overhaul. He says you can make money in any market, you just need to look for your opportunities.
And most importantly, Neil has the freedom to follow his passion as a competition boxer (and former Dutch Champion) to train 18 hours per week, and is readying to compete in the Elite Australian Masters Boxing Title later this year on the Gold Coast.
Go Champ!!!
