“Flippers” are back in the property market. So, what are flippers and why are they back? A flipper is someone who buys, renovates and on-sells a property for a profit. Flipping is a form of property trading, as opposed to property investment, which is for the long term. Some of the conditions making flipping more attractive in the current climate include the lower interest rate environment, plenty of property stock on the market and reduced prices.

We recently came across a situation where a person had gone into a rest home and rented out their home to help cover rest home fees. Unfortunately, the family were unaware of the obligation to pay tax on the net rental income from the property until the person had passed away and their lawyer made some enquiries. This is likely quite a common scenario when people look at ways to fund retirement, as the focus at the time is often on cashflow. One positive outcome was that the property was utilised to provide cashflow without having to sell, and the family benefited from this.

I love going to open homes and talking to real estate agents, but one of the most annoying questions I always get asked is: “What do you think this property is worth?”I understand that real estate agents need to provide valuable feedback to the property owner after the open home. But the agent is the expert in their field – they’re on the ground, with all the information at their fingertips. So why are they asking you? Unless you’re in the industry, have researched multiple recent sales of comparable land and building size, and viewed several similar properties in the area, how can you be expected to give an accurate answer?

Note: The content provided above is for general information only and does not constitute personalised financial advice. Please consult a licensed financial adviser before making investment or lending decisions.