How to make money buying and selling property

Africa Melane interviewed MortgageMe Director Andrea Tucker on what you need to know when trying to flip a house.

“Tipping houses” refers to the purchase of residential property, improvement or renovation, and then sale for a profit.

It can be a great way to make money, especially in a rising market, but you need to know what you’re doing and you need to do your research.

“There are people who have the time to do research and are doing it very successfully,” said Andrea Tucker, director of MortgageMe.

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Tips, in a nutshell:

  • Make sure you can cope financially if you fail to sell the property as quickly as you had hoped.

  • Do the research. Are you looking in the right neighborhoods? “You want to buy the cheapest property in the neighborhood; it’s likely to appreciate the most in value,” Tucker said.

  • Get a database of decent service providers that can help with quick renovations.

  • With high risk comes high reward; sometimes you have to wait a little longer to get the prize you want.

  • Sell ​​in summerespecially in Cape Town, is always better than trying to do it in the winter.

  • Most activities are currently taking place below R3 million. “We recommend looking for a property under R2 million,” Tucker advised.

  • The renovations required should be mainly cosmetic as opposed to structural changes.

  • Understand the impact of capital gains tax. “Take this into account in your initial calculation. It’s something you can plan for”.

  • Ask for the financial statements of the legal person if you buy in a complex or an apartment building.

“I wouldn’t recommend going into this process without time for research and time to manage the process yourself.”

Scroll up to listen to the full interview.


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