Why it's not a good idea to flip properties in Darwin

By Gerv Tacadena

Flipped properties in Darwin are less likely to turn profitable.

While the vast majority of properties in Australia were flipped for a profit last year, there are certain areas to avoid should one decide to redevelop their homes.

According to CoreLogic, property flippers in the Northern Territory experienced a higher likelihood of losses. In fact, seven of 10 flips in the past one- to-two years (and three in 10 within the past year) turned to be unprofitable in the capital city of Darwin in 2017. Regionally, half of the properties sold within a year flipped for a loss, and 40% of those sold after a year.

This same story repeated in Western Australia, where losses from flipping hit record levels in 2017. CoreLogic said 47.7% of Perth properties flipped within one to two years of purchase sold for a loss.

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North East Perth saw the highest losses in the region, with half of all flips between one and two years resulting in a loss. Bunbury, Inner Perth and Wheatbelt were the only regions where reselling property seemed to escape unscathed.

CoreLogic said Sydney (94.3%) and Melbourne (93.7%) were the most profitable capitals for flipping. In New South Wales, 94.5% of flips recorded a profit, trending above the national average of 89.9%.

The highest level of flips in New South Wales was seen in the Illawarra region, making up 8.7% of the market's resales within one to two years. Illawarra was also one of the most profitable areas in the territory, with only around two percent of properties flipped at a loss.

In Victoria, the Mornington Peninsula turned out to be the hot spot for flipping, with only 1.8% of properties recording a loss.

Meanwhile, flipping in Queensland was most prevalent in the Gold Coast. However, the area most likely to turn a profit was Moreton Bay North, with 95.6% of flipped properties recording gains.

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