![](https://cdn.neighbourly.co.nz/images/cache/user_profile_profile_picture/attachments/581fbb3e820bc6.77115089.png?170410)
Seven Essential Things You Should Know If You Want To Flip Houses
1. BUY SMART
As they say, you make your money when you buy. It doesn’t matter how amazing your renovation is, if you have overpaid for the property, it is already eating into any potential profit. Leave your emotions at the door and use your head, not your heart, when purchasing.
2. RESEARCH
Research the suburb’s sales history so you know the house is at the right price and learn what you could potentially sell the property for when the renovation is complete. Once you are interested in a property, do all the due diligence required – have your lawyer go over the LIM, get a building inspection and talk to the neighbours about the area.
3. KNOW THE TAX RULES
Employ a trusted lawyer and accountant and find out what your legal and tax obligations are. The current law states if you buy a property with the intention of reselling it, or buy a home as part of your property or building business, you will have to pay tax on any profit from the sale. If you buy and sell a property within two years (this is currently under review), you’ll pay tax on any profit (with some exclusions, eg your main home is excluded). You may also have to pay tax on profit if you have a history of buying and selling properties, or if you’re associated with the property industry. For details, see ird.govt.nz/property
4. PLAN, PLAN, PLAN
You can download budget planners which detail all the costs involved in buying, renovating and selling a house. These cover purchasing costs (building inspection, lawyer, accountant), holding costs (mortgage payments, rates, insurance), renovation costs (council consents, builders, tradies, fixtures and fittings) and selling costs (agent’s fees, lawyer and accountant).
5. COUNT ON QUOTES
Get several quotes for work required and clarify the scope of work you are paying for, eg will you project manage or will the builder? Will you source each tradie or will your builder give one fixed price for the entire job? This process is time-consuming but important.
6. MAKE IT QUICK
Aim to complete the renovation and get the house back on the market as quickly as possible, so you are selling in the same market you bought in. This will protect you from any potential market downturn and ensure holding costs like mortgage repayments, rates and insurance are as low as possible. Although this renovation took longer than anticipated due to an unprecedented building boom in the area, house values were increasing at such a rapid rate that the extra costs incurred were outweighed by the increase in the property’s value.
7. EXPECT THE UNEXPECTED
Our budget ran over by about 10 percent, which is common when renovating. Other than a new joist needed in the bathroom floor, everything else was in mint condition. However, the renovation wasn’t without its lows. There was one awful moment a few days before the Readylawn was to be laid, when we found out that a large, deep trench had to be dug through the newly laid driveway and across the entire front yard. Incredibly, it was fixed within 24 hours and the drainage boys then levelled out the ground, meaning one less job for us before the lawn was laid.
The other bad experience involved a tradie who was booked to do the driveway but took my money and skipped town. That’s an extra tip – never pay before work is complete.
![](https://cdn.neighbourly.co.nz/images/cache/user_profile_profile_picture/organisation/5431e2f56f6da0.99048672.png?170410)
Poll: Have you ever had a scary flight?
A plane flying from Christchurch to Wellington on Sunday had smoke billowing out of the engine and upon landing, passengers had to open the emergency exit and jump out. Have you had any scary flying experiences?
![Image](https://cdn.neighbourly.co.nz/images/cache/message_max_size/message_images/66d4f83916b4e9.84433753.jpeg?170410)
-
56.5% Yes!
-
43.5% No, it's always been smooth flying
![](https://cdn.neighbourly.co.nz/images/cache/user_profile_page_picture/profile/60868868507703.80116173.jpeg?170410)
ALEXANDER ROAD SPEED LIMIT
Alexander Road in Trentham-Wallaceville of which 50% separates a golf course from a military encampment enclosure and the rest has mostly high fenced off industrial and residential areas on both sides, should have a 70km speed restriction.
Only a short time ago the road had a 80km restriction and was reduced to a pedestrian 50km much to the frustration of many. It has never been an accident prone stretch of road.
The several round-abouts ensure speed is reduced to 30-40km when these things occur.
I recently stayed a few days in Feilding - often given the title of the best town in NZ - and one of the lengthy main streets has a 70km speed restriction despite a predominance of unfenced residential properties on both sides.
![](https://cdn.neighbourly.co.nz/images/cache/user_profile_profile_picture/organisation/5431e2f56f6da0.99048672.png?170410)
LIVE Q&A: Financial well-being with Cat Rikihana
Today (Wednesday) we're having another Neighbourly Q&A session. This time with Cat Rikihana who is a financial mentor, educator and financial capability practitioner at Financial Freedom Trust in the Manawatū.
Cat Rikihana (Ngai Tahu) like many financial mentors around Aotearoa, works with individuals, groups and whānau to successfully navigate financial stress and hardship. Mentors work alongside whānau to increase confidence and skills in personal money management and advocate with and for clients. Cat enjoys delivering online and face-to-face workshops which provide opportunities to normalise money conversations and encourages people to make time to consider their financial well-being.
Cat is also an independent financial well-being coach, educator and indigenous life coach at Restore Wellness Network. She is a published writer and currently in the process of writing her first non-fiction book: 'A financial self-care guide for women in Aotearoa.'
She'd love to answer any questions you may have around your budgeting and spending habits, strategies for saving, retirement planning and debt. (Don't be shy, but be mindful about what you disclose!)
↓ Share your questions now and Cat will reply to your comment below ↓
![Image](https://cdn.neighbourly.co.nz/images/cache/message_max_size/message_images/66cfa2bf5e9430.63639192.png?170410)