House flipper

House flipper makes a $600K profit

PHOTO: A Sydney couple has made a staggering $600,000 profit after flipping a Kensington townhouse (pictured) they bought just nine weeks earlier

  • Sydney couple have made $600,000 profit in nine weeks by flipping their home
  • Pair bought the Kensington townhouse during lockdown but then decided to sell
  • House flippers are making profits worth millions often without any renovations

A Sydney couple has made a staggering $600,000 profit after flipping a home they bought just nine weeks earlier.

The savvy sellers made no improvements to the townhouse in the inner southern suburb of Kensington and sold the property off-market to a buyer who didn’t even visit the home.

The three-bedroom property was originally bought for $2.55million during lockdown and was recently resold for an impressive $3.15million.

The couple’s real estate agent Roger Wardy was able to negotiate the deal before the couple had even settled into the townhouse, the Daily Telegraph reported.

The Ray White agent explained the couple had experienced instant buyer’s remorse after purchasing the home and thought they had overpaid.

Mr Wardy was able to find a buyer on the hunt for a townhouse in the area who agreed to cough up the extra amount despite not being able to inspect the property.

The couple had to pay $110,000 in stamp duty as the sale was conditional on them settling the home, so they were left with $490,000 gross resale profit.

The agent said flipping properties in the current climate of continually escalating property values was common place but even he and his colleagues were gobsmacked by the short-term profit on this sale.

‘Everyone in our office has been freaking out about it. It’s pretty amazing,’ he said.

Investors sold a five-bedroom home in Camp Hill (pictured) at auction for $3.07million after purchasing it for $2.8million in December

Investors sold a five-bedroom home in Camp Hill (pictured) at auction for $3.07million after purchasing it for $2.8million in December 

The sale came after a home on the exclusive Bulkara Road in the eastern suburb of Bellevue Hill recently sold for $12.2million, double the amount the sellers had  paid two years ago.

HOUSE FLIPPING RATES IN AUSTRALIA

Sydney: 5%

Melbourne: 2.3%

Brisbane: 1.7%

Perth: 4%

Hobart: 4.5%

Adelaide: 4.3%

Darwin: 0.7%

Source: The Daily Telegraph 

Nerida Conisbee, the chief economist at Ray White, revealed five per cent of the homes sold in Sydney over the last year had been lived in for less than 12 months.

The harbourside city is leading the charge in rates of short term reselling with double the amount of homes flipped in Sydney than Melbourne or Brisbane.

However, Queensland is quickly becoming home to a string of professional house flippers who are taking advantage of escalating property prices and a market that was previously undervalued.

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