If flipping the property is your aim , then it is preferable to buy a property that requires cosmetic changes rather than structural ones , as the key is to try and spend around 15 percent of the value of the property on renovations . If the renovations are extensive , and therefore expensive , you may need to hold onto the property for a period of time in order to maximise the gain .
Your calculations need to include finance costs , transfer costs and then capital gains tax . Some investors prefer to play in the market in the lower price range because transfer costs are much less . However , in this price category one needs to be aware of not overspending on the renovation , and then struggling to recover the costs on the sale .
SA Real Estate Investor Magazine AUGUST 2022 81