Flipping houses in Australia: profit or pipedream?
Has watching The Block got you thinking about the potential of renovating properties to make a quick profit? We explore whether house flipping in Australia is worth all the effort.

Has watching The Block got you thinking about the potential of renovating properties to make a quick profit? We explore whether house flipping in Australia is worth all the effort.
KEY POINTS
- House flipping generally refers to purchasing an undervalued property, renovating it and selling it on at a profit.
- House flipping usually requires a large investment of your own time, money and manual labour.
- Thoroughly planning your house flipping project may help you avoid headaches down the line.
What is house flipping?
House flipping is an investment approach that typically involves buying undervalued properties, renovating them and then selling them on at a profit. The aim is generally—theoretically at least—to complete this process quickly and to spend as little as possible on the renovation in order to maximise profit before moving on to the next ‘flip’.
When you consider the investment of finances, manual labour, time and emotion, flipping houses may not be for everyone. But for some ambitious Australian investors and renovators, the challenge and potential profit are significant motivators.
If you’re considering tackling a renovation project for profit, there’s a lot to think about: finding a suitable property, financing the purchase, renovation costs and more.
What are some of the benefits of house flipping?
House flipping isn’t a simple task to undertake, which makes the potential benefits quite large. Some of them are:
- Profit: While there are several factors that will go into whether or not you make a profit when flipping a house, house flipping in Australia has the potential to be lucrative.
- DIY and investing skills: Flipping a house may be a good way to hone your own DIY and investing skills. Whether it’s researching properties and suburbs to buy in, painting the interior of the house or managing contractors and the project as a whole, house flipping could help you learn new skills or build on existing ones.
- Having a project: Some people enjoy being able to throw themselves into a new project, especially one as large as flipping a house. You may also find satisfaction in being able to turn a run-down property into a home ready for a new buyer.
What are some of the risks of house flipping?
There are some potential risks that are worth considering when it comes to renovating for profit. These risks can include:
- Market conditions: If house prices across the market fall, selling your property at a higher price in the short term may be difficult, even if you’ve improved it cosmetically or structurally.
- Interest rates: If rates rise—for example as a result of the Reserve Bank of Australia (RBA) increasing the cash rate—this could mean higher loan repayments and pressure on your budget.
- Having difficulty selling: If you need to hold onto the property for longer than expected, the costs—such as loan interest, council rates and utilities—could quickly rack up and eat into any eventual profit you might make.
- Unexpected costs: Renovation costs you hadn’t anticipated can derail even the most carefully planned budget. Having a building inspection carried out before buying a property may help you avoid some nasty surprises.
- Rising material and labour costs: The decreased supply of materials and a thinly stretched construction workforce has seen building costs rise, according to the data analytics company Altus Group.
5 tips for house flipping
1. Do your research
As house flipping projects generally require a large investment of your time and money, it’s recommended that you thoroughly plan ahead and do your research, as this can help you get a better result and keep a cool head if the pressure ramps up.
House flipping can be stressful, no matter how big or small the renovation, so giving yourself the time to prepare can also help build your confidence. Having a clear budget and timeline to work off of can also help with this.
You’ll likely be working with contractors and trades on your project, so it’s important to shop around and get quotes (such as best hourly rates and professional estimates of time and costs) from several different businesses. It’s also important to be upfront with them about your own expectations and budget. Brushing up on some tradesperson terminology, as well as their processes, can be helpful, especially when communicating your plan with them.
Ultimately, time is money on a building site and having a strong plan in place before everything kicks off could help you avoid delays or costly issues.
2. Make sure you ‘buy well’
House flipping isn’t for the faint-hearted due to the considerable potential risks. If you expect to make a short-term return, it means that you’re going to have to buy well. Buying well could mean walking away from any property that is not under-priced, especially if the property in question is going to auction. Buyers sometimes get caught up in ‘auction frenzy’, act irrationally and over pay, which can hurt their potential profit margin.
If you plan on renovating, you should also get accurate costings and ensure that you have the relevant planning approvals. Understanding the condition of the property can also help you avoid finding unpleasant surprises as you go. This is where a conditional building and pest inspection may come in handy.
3. Consider the finance carefully
Buying a property with cash isn’t a feasible option for everyone. This is why it’s important to consider how you plan to finance the purchase of the house you’re flipping.
When considering the finance required, such as taking out an investment home loan or using the equity you may already have built up in your own home, don’t feel that your choice doesn’t matter. Even if you won’t be repaying the loan for long, it’s best to assume the worst—that you won’t be able to sell for the price you want and that you may have to hold onto the property for longer.
Considering a loan with an interest rate at the low end of the market with the flexibility to be repaid early may be beneficial. This would, however, rule out most fixed rate loans. You would also have to be able to afford the loan repayments, otherwise your lender could repossess and sell your property to repay said loan.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promoted products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promoted products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
4. Be prepared for the work and challenges involved
House flipping doesn’t always work in Australia because of the significant costs involved. These costs have been exacerbated by rising material and labour costs, with the cost management and advisory firm, WT, suggesting that building costs are expected to rise between 3% and 7.5% across Australian cities in 2025.
Unfortunately, when it comes to house flipping, doing structural renovations to a property is generally the only way to make significant profit. In other words, adding to the back of an old terrace, modernising it, bringing the external toilet inside, adding an ensuite, making another room and/or adding an upstairs.
This type of work represents a significant effort that may be beyond the physical and financial capabilities of many Australians. This kind of house flipping typically involves a builder, contractors and development planning and permits, depending on what state or territory you’re in. If you’re going to do this, you’ll need to be prepared to do a lot of work to add value, but most areas have ceiling prices and people generally aren’t going to buy the most expensive house on the street just because you’ve done it up.
5. Keep a close eye on your costs
We’ve stressed the importance of budgeting above, but it’s definitely something worth calling attention to. Some house flippers manage their costs by doing the majority of the work themselves, opting to only bring in professionals, such as plasterers and electricians, when required.
It’s important to note that different states and territories in Australia have different licensing requirements when it comes to renovation work. Electrical, plumbing, structural and roofing work is generally required to be undertaken by a licensed professional. It’s advised that you research the relevant requirements of your state or territory during your planning phase.
It’s also important to consider your own financial circumstances when researching suitable properties in your price range. If you over extend your budget, you may be left with little or no profit in the end or put yourself under undue financial pressure.
Is house flipping right for me?
This will ultimately depend on your own personal and financial circumstances. Since this form of investment involves a large amount of money—both upfront and throughout the project—it’s advised to get professional financial advice before making any decisions.
Cover image source: Fit Ztudio/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

Alasdair Duncan is Canstar's Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo Finance, The New Daily, The Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.
In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.
When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Try our Home Loans comparison tool to instantly compare Canstar expert rated options.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.