How to Successfully Flip Houses: Tips from an Experienced Property Trader


Flipping houses, also known as property trading, has become increasingly popular in New Zealand. It may seem glamorous and lucrative, but it’s important to navigate the potential pitfalls. Whether you’re a beginner or looking to improve your flipping game, these insights will set you on the right path.


  1. Set Up the Right Structures: Before embarking on your first property trade, establish the appropriate legal and financial structures. This ensures compliance with tax regulations and maximizes tax efficiency. Consult with an accountant to determine the best structure for your circumstances, including understanding GST zero rating and tainting.

  2. Build an A Team: Surround yourself with a reliable and cohesive team of experts who specialize in property trading. This includes professionals such as an accountant, mortgage broker, solicitor, real estate agent, builder, painter, plumber, electrician, and property stager. Seamless communication between team members streamlines the process.

  3. Avoid Greed: Don’t hold out for the highest offer when selling a property. The initial offer is often the best offer, and waiting for top dollar can lead to significant holding costs and delays for your next trade. Be realistic about pricing and always leave room for the next buyer to make a profit.

  4. Know Your Numbers: The most critical aspect of property trading is purchasing the right property at the right price. Spend ample time researching and understanding your market. Study comparable sales, both renovated and in need of renovation, to gauge end value accurately. Learn to identify hidden potential that others may overlook, such as reconfiguring layouts or adding extra features.

  5. Be Prepared to Walk Away: Negotiations can reach a stalemate, and it’s crucial to maintain your financial boundaries. Don’t be tempted to exceed your budget. Knowing when to walk away from a deal is essential for long-term success.

  6. Be Realistic About Timeframes: Set realistic expectations for the timeline of each trade. From purchasing the property to receiving funds at settlement, allow for factors like renovation, staging, marketing, selling, and contract processing. Consider the availability of tradies during different times of the year and potential market slowdowns.

  7. Assess Financial Stability: Before diving into property trading full-time, evaluate your financial situation. Tightened lending criteria mean banks often require at least two full financial years of trading income before providing mortgages. Having a salaried income, either from yourself or a partner, can strengthen your position with lenders.

  8. Take Action: Create a plan and take immediate action. Attend open homes, network with agents, and seek guidance from experienced property traders. Remember, dreams become realities only when accompanied by action.


Property trading can be an exhilarating rollercoaster ride. By following these tips, you can enhance your property trading skills and increase your chances of success.

 

Your Outside Team

 

 

Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business. 

 

 

Contact 

Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Restaurant Accountants | Cafe Accountants | Business Consultation | Business Adviser | Accounting for Doctors | Accounting for Dentists | Accounting for Architects | Accounting for Engineers | Accountants for Healthcare 

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Minimum Wage Increase in New Zealand from 1 April 2025: What Employers Need to Know

From 1 April 2025, New Zealand’s minimum wage will increase, impacting businesses across the country. As an employer, it’s essential to understand how these changes affect your payroll, budgeting, and overall business operations. Here’s what you need to know to stay compliant and prepared.
The good news? There are practical steps you can take to regain control of your time and create a healthier work-life balance.

Read More »