Thinking of getting into the house flipping scene in Brisbane or elsewhere in Queensland? Whether you're a fan of renovation reality shows or just looking for a hands-on investment strategy, house flipping might just be your next big move.
But before you grab your paint roller or call a tradie, it's important to understand that flipping houses isn't just about buying low and selling high. It takes planning, research, and a solid grasp of the market.
This step-by-step guide will walk you through exactly how to start flipping houses in Australia, especially as a first-timer.
Flipping houses but unsure how to fund it? Trusted Queensland mortgage brokers at Zest Mortgage Solutions help first-time flippers secure smart, flexible loans designed for short-term projects. Book a free appointment today by calling us at (07) 3461 6499.
What Is House Flipping?
House flipping refers to the process of purchasing a residential property, making targeted improvements, often cosmetic or structural, and then reselling it within a short timeframe to generate a profit.
In the Australian property landscape, particularly in growing markets like Brisbane, house flipping has become an increasingly popular investment strategy as property values continue to fluctuate and present short-term opportunities.
Flipping vs Rental
While both are considered property investment strategies, house flipping and rental investing differ significantly in approach and financial objectives. House flipping focuses on short-term gains by improving and reselling a property quickly, often within months.
Rental investing, on the other hand, involves holding a property long-term and generating income through tenant rent, along with gradual capital growth.
Flipping is generally more hands-on and capital-intensive upfront, whereas rental investment offers more stable, passive returns over time.
Is House Flipping Legal in Australia?
Yes, house flipping is legal across all Australian states and territories, including Queensland. However, there are several important legal and tax considerations that renovators must be aware of.
Frequent property flips may be classified as a business activity by the Australian Taxation Office (ATO), affecting how income is reported and taxed. Additionally, state-based regulations, such as planning approvals, council permits, and compliance with zoning laws, must be strictly followed during renovation works.
How to Start House Flipping in Australia
Getting started with flipping houses requires more than just a good eye for property. You’ll need a structured plan, solid market knowledge, and the right team to guide you through the process.
Below is a chronological step-by-step outline to help first-time house flippers begin their journey with confidence and clarity.
Step 1: Understand Your Local Market
Before anything else, gain a strong understanding of the local property landscape. This involves researching areas with rising property values, suburbs undergoing revitalisation, and the preferences of buyers in your target area.
Look at factors such as infrastructure projects, school zones, public transport access, and demographic trends to identify suburbs with real growth potential. Platforms like Cotality (formerly CoreLogic), Domain, and Realestate.com.au offer suburb profiles and historical data that can guide your decisions.
- Key factors to consider:
- Suburb median prices and recent trends
- Local vacancy rates and rental yields
- Planned infrastructure or rezoning
- Demographic shifts and buyer demand
- Suburb median prices and recent trends
Pro Tip: Use Cotality’s heat maps to identify suburbs with consistent capital growth and low days-on-market rates. Target areas with properties selling faster than average.
Step 2: Perform Detailed Market Research
Once you’ve narrowed down promising suburbs, conduct deep market analysis to identify the types of properties that are in demand. Look at recent sales, inspect similar homes, and take note of the features buyers value most (e.g., open-plan living, outdoor areas, off-street parking).
Compare original condition homes versus renovated ones to understand how much value renovations can add in that area.
- Research tools to use:
- Sold property data and comparative sales
- Local real estate agent reports
- Property forums and community groups
- Sold property data and comparative sales
Pro Tip: Attend open homes and auctions in your chosen suburbs to get a feel for market expectations and price sensitivities.
Step 3: Build a Reliable Support Team
Even seasoned house flippers rarely work alone. Start building your network early. This includes a mortgage broker, building inspector, solicitor or conveyancer, qualified tradies, and a knowledgeable local real estate agent.
Having reliable professionals on call can save you from costly mistakes and delays.
- Core team members:
- Licensed builder or renovation contractor
- Mortgage broker (for finance structuring)
- Accountant with experience in property investment
- Property solicitor or conveyancer
- Real estate agent for purchase and resale guidance
- Licensed builder or renovation contractor
Pro Tip: Prioritise working with professionals who have specific experience with renovation and property flipping projects in your local area.
Step 4: Secure Finance with the Right Loan Type
Flipping houses often requires short-term funding with flexibility. Depending on your financial situation and the scope of the renovation, you may consider:
- A home loan or renovation loan for basic flips
- A construction loan for major structural work
- A home equity line of credit if you already own property
Pro Tip: Look for lenders offering interest-only periods during the renovation phase to reduce holding costs. Each loan type has different risk levels and repayment structures. Work closely with your mortgage broker to select the most suitable financing option for your strategy.
Ready to flip your first property? Let Zest Mortgage Solutions experienced Queensland mortgage brokers guide you through the right financing strategy, whether it’s a construction loan, interest-only loan, or equity release. Call (07) 3461 6499 to schedule a free chat with us today.
Step 5: Identify the Right Property to Flip
Now that you're financially prepared, start searching for the ideal investment property. Look for homes with solid structure but cosmetic issues, such as outdated kitchens, poor paintwork, or cluttered layouts, that can be transformed without major expense.
Avoid properties with serious defects like foundation issues or pest infestations unless you have specialist expertise.
- Property characteristics to look for:
- Strong floor plan with potential for improvement
- Properties in streets with consistent sales
- Dated interiors but solid external condition
- Motivated vendors (distressed sales, deceased estates)
- Strong floor plan with potential for improvement
Pro Tip: Use the 70% rule: don’t pay more than 70% of the projected resale value minus estimated renovation costs. This helps maintain profitability.
Step 6: Conduct a Pre-Purchase Inspection
Before committing to a purchase, always organise a comprehensive building and pest inspection. This step will identify any hidden problems, such as leaks, electrical issues, asbestos, or termite damage, which can derail your renovation budget. Inspections are especially critical in older homes commonly targeted by house flippers.
Pro Tip: Ask your inspector for renovation advice. Some experienced professionals can estimate upgrade costs and highlight potential council red flags.
Step 7: Develop a Detailed Renovation Plan
Once you’ve secured the property, create a thorough renovation plan that outlines your timeline, budget, and scope of work. Focus on high-return upgrades like kitchen and bathroom renovations, fresh paint, new flooring, and improving curb appeal.
Break your renovation into phases to ensure efficient time and cost management.
- Common value-adding upgrades:
- Kitchen renovation (modern benchtops, appliances)
- Bathroom upgrades (walk-in showers, tiles)
- Interior paint and lighting
- Exterior landscaping and entryway improvements
- Kitchen renovation (modern benchtops, appliances)
Pro Tip: Avoid personal taste and stick to features that appeal to the broadest buyer demographic in your chosen suburb.
Step 8: Apply for Necessary Permits (If Applicable)
For any structural changes, like removing walls, building extensions, or adding decks, you’ll need approval from the local council. Each local government area in Queensland has its own planning rules, so be sure to check what's required before you begin. Non-compliance can delay resale and reduce buyer confidence.
Pro Tip: Use council pre-lodgement services to get early feedback on your renovation proposals and avoid permit delays.
Step 9: Manage Renovation and Monitor Progress
During the renovation, stay actively involved in overseeing progress and managing tradies. Ensure all work meets building standards and stays within budget and timeline. Poorly managed renovations can blow out holding costs and reduce final profit margins.
Clear communication with contractors is essential. Set expectations upfront and confirm details in writing. It’s also wise to document progress with photos and keep a daily log of completed tasks and any issues that arise.
Pro Tip: Create a weekly checklist and conduct site walkthroughs at key milestones to avoid costly rework or last-minute surprises.
Step 10: Prepare for Sale and Execute a Strategic Exit
As the renovation nears completion, start preparing your property for sale. Work with a local real estate agent to set a competitive price based on updated market data and the property’s new condition. Consider staging the property to maximise visual appeal and attract emotional buyers.
- Marketing strategies to consider:
- High-quality listing photos and floor plans
- Social media promotion and email campaigns
- Private inspections and weekend open homes
- High-quality listing photos and floor plans
Pro Tip: Aim to sell in high-demand seasons (Spring/Summer) and monitor competing listings to time your sale for maximum visibility.
Need help with loan applications for your house flipping project? Our team handles all the legwork, from pre-approval to settlement, so you can focus on the renovation. Call Zest Mortgage Solutions expert Queensland mortgage brokers today at (07) 3461 6499 to book your free, no-obligation consultation and unlock tailored finance solutions built for your project.
FAQ
What is the 70 rule in flipping?
The 70% rule suggests you should pay no more than 70% of a property's after-repair value (ARV) minus estimated renovation costs. It's a guide to help ensure there's enough margin for profit after expenses.
Is house flipping profitable in Australia?
Yes, house flipping can be profitable in Australia, especially in growth areas with strong buyer demand. Success depends on careful market research, budgeting, and effective renovation planning.
What to do first when flipping a house?
Start by researching the local property market to identify high-potential suburbs and property types. Understanding buyer demand and pricing trends is crucial before making any purchase.
What is the secret to flipping houses?
The key to successful flipping lies in buying smart, renovating for value, not emotion, and keeping a tight grip on budget and timeline. Having the right team, including a mortgage broker and licensed tradies, makes all the difference.
How can a mortgage broker help in financing house flipping projects?
A mortgage broker can assess your financial situation and match you with suitable loan options, such as interest-only or construction loans. They also help navigate lender requirements, improve loan approval chances, and structure finance to suit short-term flipping strategies.
What are the top suburbs in Brisbane ideal for property investment?
Top-performing Brisbane suburbs for property investment include Redcliffe, Chermside, Oxley, and Indooroopilly, thanks to strong infrastructure, rental demand, and ongoing development. These areas offer excellent potential for both capital growth and rental yields.
For our complete list, please check out our article on Best Brisbane Suburbs for Property Investment.
How much money do I need to start flipping houses in Brisbane?
You’ll typically need at least 10–20% of the purchase price, plus funds for stamp duty, renovations, and holding costs.
Final Thoughts
Flipping houses can be a rewarding property investment strategy when approached with the right knowledge, planning, and support. Whether you're new to real estate flipping or looking to grow your portfolio in Queensland, having the right financial guidance is just as important as picking the right property.
If you’re looking to finance your next flip or renovation project, speak with a trusted Queensland mortgage broker to explore tailored loan options that suit your timeline and budget. Reach out to Zest Mortgage Solutions at (07) 3461 6499 for expert advice and personalised support to help make your house flipping journey a success.
