Did we make any money? | How To Flip A House in Australia PT12

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Did we make any money? | How To Flip A House in Australia PT12

Рет қаралды 14,756

Күн бұрын

You've seen us renovate before, but never like this! Follow along as we navigate the world of DIY house flipping in Australia.
The burning question on our minds throughout this journey is: Can we really make money flipping houses in Australia? Will our dedication and hard work pay off, or will we face the harsh reality that the market is more challenging than anticipated?
This series offers an exclusive look into the DIY renovation process, providing valuable insights and inspiration for fellow rookie renovators and enthusiasts. See how we handle the immense pressure of balancing creativity, financial calculations, and the desire to create a beautiful home.
Get ready for an authentic, rollercoaster ride filled with highs, lows, and the exhilaration of taking on the house flipping challenge. Subscribe now to our channel and follow our journey as we document our experiences. See you every Sunday at 7pm!
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How to sell a house

Пікірлер: 80

@lukewiles1 10 ай бұрын

Watch the full How to Flip a House series from the Start! kzfaq.info/sun/PLLnaoECB3seTic2RAQiT7lU2eMIAxcxs4&si=1MLxOdS8L2cAFA5O

@simplyintranets 16 күн бұрын

Thanks for sharing. At least you got the experience and learning yet didn't make a loss. Most people wouldn't even do that.

@KrisG24 10 ай бұрын

Thanks Luke for taking us through this journey. Glad you are not in red. Great insights.

@JoshuaBradshawHill 10 ай бұрын

Great series, thank you for sharing. It is a shame about the result, but some great lessons learned no doubt

@Coffeebrakn-ds7pz 10 ай бұрын

Great effort on the house 😎 I'm glad for you that your finances didn't finish in the red.

@Andre-Grassi 10 ай бұрын

Thanks Luke for your honesty mate! I believe the learning curve is your actual win in this case.

@duanestace6303 10 ай бұрын

Nice one Luke, Thank you for sharing. All the best with the new kiddie.

@lindalinda1569 10 ай бұрын

Really loved this series and real numbers! We’ve done 4 flip houses in Victoria. Paying that second mortgage ontop of your own mortgage payment, whilst all the reno expenditure is flying out of the bank account. It’s not for the faint hearted lol it can get very stressful ontop of really exhausting. I wish you would’ve made more money for all your hard work you put in! Could you not have gone through a mainstream lender to cut down on all those hefty fees? That’s interesting about charging interest on the money you put down. We always put 20 percent deposit in but haven’t known you could charge interest like that in the calculation. Great stuff, job well done 👍

@lukewiles1 10 ай бұрын

Was difficult to go through a mainstream lender for us at the time and because the house needed so much work. Congrats on your projects! And appreciate your feedback

@BenThomas089 10 ай бұрын

My wife and I will post our renovation project on here shortly, we purchased and settled 3 days before Christmas 2022 and finished in June, we are on the Sunshine Coast and it was such a blessing as we found out after securing the property the building at the back which at the time didn’t resemble a granny flat was in fact an approved one.

@seanc758 6 ай бұрын

Keen to check it out when posted

@sliepa1 10 ай бұрын

I have been following a lot of your channel as I am buying a house. Nice work mate and love your bold honesty.

@user-iq8nl9vy3e 10 ай бұрын

Good series, Some comments I have, I think you were harsh in your assessment of 1.83%, I would argue that your margin should be calculated off your money invested so including the missed interest you would be into it at $147,101, that would mean you actually got a return margin of 10.35% which I think is pretty handy over the span of 5 months. another thing to note is that you bought at a peak in the market and sold after a few interest rate hikes when everyone was gun shy to buy, I would be interested to know what would happen if you were to hang on to it for another couple of months and sold when stocks were low and demand was picking up again. Another thing I noticed was that you seem a competent handy man and this is evident when you are game to tile yourself, were you not game to at least hang your own plaster and only pay to set and sand? just a few thoughts, I thoroughly enjoyed the watch and are in the middle of doing something similar myself just around the corner in Kedron

@lukewiles1 10 ай бұрын

When you look at it that way the cash on cash return is pretty good. Especially for a few months and a couple of days a weeks work. Your comment has given me a new perspective! Thanks

@NoRegertsHere 4 ай бұрын

I was going to make the same comment. It’s roughly a 10% return in 5 months. I’d also add that I’m not sure where you get roughly $13.6k in interest earned on funds invested. $147k at 4.5% savings account is $2750 over 5 months. If a 6.5% home loan offset it’s only about $4500. Are you comparing opportunity cost to index funds over that period? If your opportunity cost was $4500, then your return was $25k. Which is 17% in 5 months. Risk: Why the type of loan you took? Macquarie not keen on a flipping loan? What’s the risk of not paying it back in time?

@trishhegarty3629 10 ай бұрын

Loved the series!! Well done Luke and Emily, now I have to watch the Qlder reno!!!🙂

@roman47604 8 ай бұрын

Well done guys, thank you for sharing this experience. I am in Sydney and bought a house in Marsden with the intention to renovate and build a granny flat. But unfortunately do not have time for that. I would be happy to pay someone like you who has this proven experience to manage such a project from design to the final result.

@DavidGeorge197 6 ай бұрын

If you figure capitol gains tax on the profit…Ends up about $4 per hour for quite a bit of risk.

@matthewj6154 4 ай бұрын

Liked and commented for the honesty. Good to see, surprised you didn't get more, I was buying an investment around then and good stock was really hard to find.

@Marco-Ly6l 10 ай бұрын

Very good Lucas, this video was very informative. Congratulations on the guidance.

@anthonystefano1441 8 ай бұрын

Very cool little series, great insight into all the costs & what’s involved. My wife & I are looking for a property to do a small reno/flip on too, for similar reasons. I’m a plumber by trade so have a good grasp on what’s involved but I can see that there are so many hidden costs & tax’s… & there’s always things that can be missed & not accounted for in costs, drainage not being in good condition or house wiring etc. Anyway thanks for the videos good job all involved, will have to watch the others, cheers 👍

@DarraghMurray 10 ай бұрын

Really enjoyed this video and series Luke - I might have missed it, but did you count your own labour as a “cost”? I mention it because there is probably an argument that the opportunity cost should be valued. Then again I guess it was an educational experience so perhaps that’s why you’d through in your time as a freebie. The joint venture idea also seems like a genius idea! Probably a market for that

@musicloverhasan 3 ай бұрын

The risk is huge if the person does you wrong. Because its their house and how can one establish terms?

@hackgolfer7352 10 ай бұрын

Great breakdown of costs, thank you.

@BenThomas089 10 ай бұрын

Hey Luke, thanks for sharing mate, great video.

@peterelliott2914 10 ай бұрын

As my favourite property guy and as a family moving to Brisbane soon, I'd love you to do a video on a house to live in! Not investment, not to flick, but for you - or rather a typical couple or family. We're not wealthy - maybe $700k to spend after the NZD-AUD conversion. Or maybe a mill if the son chips in lol. We like being comfortable, bit of a yard but not too labour intensive, we like walking along a river, park, forest or beach every day and don't want to drive to get to it. We like Sunday drives. Just to round out the breadth of your channel :) Pete - your cuz across the ditch.

@cashan123 10 ай бұрын

Very nice and informative video. Wish you more success for your next project

@GalC19 10 ай бұрын

very insightful video, glad I came across your channel!

@williamcrossan9333 10 ай бұрын

Thanks for the vid! Great detail. It's an interesting result actually. Even with a rising market, profit was hard to make! I think you must have good buying skills however. 687K is a good price I reckon.

@handymanglenn8443 10 ай бұрын

Thanks for the candour and insights Luke. We have watched the series and have thoroughly enjoyed it. We are empathetic to the effort and sweat equity that goes into something like this having done two small projects to improve 2 of our IPs in the last 12mths. So well done for having a crack and I’m sure you’ll learn a lot from this. Well done to Emily who I am sure did all the work behind the scenes to look after your son while you were at the house working. Can you share anything on CGT payable on the project as well?

@lukewiles1 10 ай бұрын

Thank you! Trying to create a better life for our family. No CGT because we were able to use carried forward tax losses from a while back

@williamcrossan9333 10 ай бұрын

Interesting. I did wonder, in a situation like this, can share market loses be used for this?@@lukewiles1

@simoneryan4487 10 ай бұрын

Loved your series and honesty. I really was concerned at your house choice from the start. Too many unknowns. I’d like to see you do a cookie cutter or apartment flip. The numbers and unknowns would be so different.

@antoniosvorrias9100 Ай бұрын

Just came across this channel. Awesome vid, thanks!

@GaryGe-xg5yp 10 ай бұрын

could done better on the suburb selection, I guess you chose a suburb good for long term growth

@z3221313 10 ай бұрын

Thanks for sharing the experience Luke. Congrats on the family growing. You mentioned the cost of funds but what about your returns against the cash you used. Also i wouldnt do a joint venture with a seller that retains the legal title unless you can get security over them be a pain to recoup proceeds later.

@Loupai925 10 ай бұрын

Just wondering did you buy the property off market?

@lukewiles1 10 ай бұрын

Nope it was purchased on market and was an ageing listing

@danielc8162 10 ай бұрын

Was the labour part of the expense allowing for your own time?? Or have you not allowed any costing towards this?? Keep up the vids

@lukewiles1 10 ай бұрын

Labour was free on my part

@wasifali2550 5 ай бұрын

Hi mate Hi thanks for your videos, very helpful for new business owners like me. I have once questions, what video camera or tool you Yousef while filming this project renovation, I like it very much.

@lukewiles1 5 ай бұрын

Insta360 x3

@matthewxcountry 9 ай бұрын

Wonderful series! What was the capital gains tax like?

@thebellachen-1667 10 ай бұрын

Thank you for sharing Luke. I really enjoy this flip project❤. Can anyone sell their own house or a R/E license is required? Do you mind sharing any good tradie who can install door and door frame on an older home( thus not standard size)? Thank you!

@bati183 10 ай бұрын

Thanks Luke for your video. Have you consider your net profit of sale is taxable in your annual revenue?

@thisnamecannotbedisplayed355 10 ай бұрын

Great video! I enjoyed watching them and learned a lot! Was this a full time job for those four months? Keen to see how much time you put in in terms of actual work days cheers

@lukewiles1 10 ай бұрын

Nope, this was just a side project. I'd say 2.5 days a week would have been the average

@deana4745 10 ай бұрын

Great series mate! Congrats on the sale even if you didn’t achieve your goal, you learnt a lot and gained some valuable experience for the next one. How does CGT play into the final profit?

@lukewiles1 10 ай бұрын

Thank you! Not the result we would have liked but still happy with the small profit. No CGT because we were able to use carried forward tax losses from a while back👍

@rayzworldz 7 ай бұрын

Has anyone been able to find a seller in Australia willing to joint venture to skip the stamp duty cost? Has anyone tried buying in a new company and then selling the company instead of the property?

@musicloverhasan 3 ай бұрын

The real question is how can you rely on the joint venture if the person you are doing this with fks you over, i,e after fixing up the house he says i dont know you?

@lukewiles1 3 ай бұрын

Contract reviewed by solicitors known as a Joint Venture Agreement 🤝

@kerryodempsey5341 10 ай бұрын

Did you plaster over the old panels?

@eugenereyes6238 10 ай бұрын

Every time I think about my journey to profitable Investments and how I was able to grow my finances to six figures, I feel very satisfied and very grateful to the ALMIGHTY.

@adamopalerma 10 ай бұрын

The joy you feel knowing that you will never be broke again should be incredible. I hope to experience it one day. Would you mind sharing how you achieved this?

@eugenereyes6238 10 ай бұрын

Having someone who can provide you with proper guidance and insights into the market can make a big difference. I wasted valuable time and money to learn this lesson and that is why I work with the best I can find ~ Lynn Erica Barnes. ~~

@mateolefebvre486 10 ай бұрын

I completely agree, emotions like fear and greed are problems for most people who try to invest on their own and end up losing their capital. I know many people who have made a fortune with cryptocurrencies, FX and Real Estate and this was possible thanks to the guidance they received from professional Mentors. Can this professional help?

@eugenereyes6238 10 ай бұрын

Yes, I firmly assure you she can, look for her name online.

@eugenereyes6238 10 ай бұрын

Not all heroes wear capes. I will always be grateful to ERICA LYNN BARNES for being so professional and knowledgeable, helping me escape the hustle and bustle of the 9 to 5

@williamcrossan9333 10 ай бұрын

Quite good buying at 687K.

@buckett0011 10 ай бұрын

So would you have sold it again or rented it if you knew the outcome? Does renting it out make better financials?

@lukewiles1 10 ай бұрын

For our situation we wanted the capital for our own home, so still would have sold. Generally would have been better to keep as a rental. Would have been able to amortise the stamp duty over a longer period of time. Seen market growth, finance at a lower interest rate (rather than a short term project) and be less fussy about the renos

@maxpayne6969 10 ай бұрын

What about capital gains tax?

@justintaylor6284 9 ай бұрын

Apologies if I missed it, but what about capital gains tax? Selling within 12 months of purchase attracts full marginal tax rate. Should this be deducted off the total profit as well? Appreciate if you can clarify. Thanks and well done on such a comprehensive analysis 👍

@lukewiles1 9 ай бұрын

We bought the property in a family members name who had carried forward tax lossess to offset the gain 100% :)

@justintaylor6284 9 ай бұрын

Thanks Luke, appreciate the clarification.

@jyattard1081 10 ай бұрын

I understand that the "fees" are part of doing business, but they really dont miss, do they? SMFH

@brendanmichaelwelsh6260 10 ай бұрын

Cute you call stamp duty a State Government 'Fee' > It's a Tax. Always with Government with their hands out expecting something for nothing. You get nothing for it & the Government will do a terrible job wasting it on some crap no one cares about. Anyway, The switchboard should have been up to current electrical standard before sale or could have shaved down a few bucks, Surprised this wasn't pingged during the building & pest. They would have also told you if the cable in the walls was the old vulcanised rubber that gets brittle after 40 years. Same as interconnected smokes alarms are required for sale, If you found out after the fact the whole property had to be stripped and re-wired this project would be in the negative. :(

@matthewgreenrod365 8 ай бұрын

In Australia there's no way you can make money flipping, renovating etc. Here's why in your calculations where's all the running around, stuck in traffic, juggling family life, cost of tools, maintenance of the same tools and the list goes on, everyone has their finger in the pie etc.

@lukewiles1 8 ай бұрын

Have to agree... This was so much more taxing than I had expected. We've made a lot more money holding onto our reno projects rather than flipping in a short period of time

@Fred-rg5vw 9 ай бұрын

You still havent factored in the cost of your labour. For the 3 or 4 people who were involved. You woulda made a lot more working for someone else..

@jonwoolf8176 10 ай бұрын

5 months work for 2 people? 500 hours at $30 =$15000.

@lukewiles1 10 ай бұрын

probably did about 2.5days per week. Still not the best hourly rate however you look at it

@buttheadbutt6712 10 ай бұрын

The house needed to much work. That’s what I think cost you.

@lukewiles1 10 ай бұрын

I think it was more financing and stamp duty. Roughly 70k reno and 70k financing

@NexVentorGaming 10 ай бұрын

@@lukewiles1stamp duty is stamp duty, its a foreseeable and calculated cost so this shouldnt be an issue. I can't believe you spent 16k on plastering thats ridiculous and you should have done this yourself. It doesn't sound like you did your numbers correctly before even buying the property and why was your estimation of the sale price so different from the final sale price?

@brendanmichaelwelsh6260 10 ай бұрын

Done the plastering yourself? Are you joking. If it was so simple and easy, it wouldn't a trade the requires skill, knowledge and experience. If you want it to look like a Slum lord hack job have a crack at it yourself but don't expect to be making any money out of the attempt.@@NexVentorGaming