Property Flipping Report. Prepared by CoreLogic

Transcription

1 Property Flipping Report Prepared by CoreLogic

2 About CoreLogic About CoreLogic CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell. With Australia s most comprehensive property databases, the company s combined data offering is derived from public, contributory and proprietary sources and includes over 500 million decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information. With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand. For more information call or visit 2 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

3 Introduction Flipping is a term used to describe short term property trading; a buyer purchases a home with the intent of reselling the property in a short time frame (generally one or two years) for a profit. Flippers aim to make their profit either by buying undervalued property and reselling at a higher price, buying property at market value and riding the capital growth curve, or by adding value to the property in some way (renovation, subdivision, development approval etc). While there are many examples of profitable flipping, it s important anyone considering this strategy understands the costs involved. Transacting real estate is an expensive exercise. Successfully flipping a home involves more than simply selling the property for more than it was purchased for. In order to make a profit, Flippers will need to recoup their transactional costs such as stamp duty and conveyancing, as well as their selling costs such as marketing and real estate agent commission. There is likely to also be interest payments on the debt as well as capital gains tax on the profit. When housing markets are running hot, it makes sense that flipping would become more popular while when a market is weaker, owners are likely to have to hold onto properties for longer in order to return a profit. CoreLogic Property Flipping Report December 3 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

4 National Over the 12 months to June, dwellings were sold after having been held for less than a year nationally with a further resold after being owned for between one and two years. These figures represented of all resold property sales over the year. Flipping remains Percentage of homes flipped < 12 mths Percentage of homes flipped between mths 2000s 2000s 4 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

5 Flipping Characteristics by State, 12 months to June Percentage of sales that were flips Percentage of flips at a profit Regions Sydney Regional NSW Melbourne Regional VIC Brisbane Regional QLD Adelaide Regional SA Perth Regional WA Hobart Regional TAS Darwin Regional NT Canberra National Combined Capitals Combined Regional < 1 Year 1-2 Years < 1 Year 1-2 Years CoreLogic Property Flipping Report December 5 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

6 Capital Cities vs Regions Across the combined capital city housing markets over the 12 months to June, of all resales were flipped in less than 12 months while of all sales were of properties held for between one and two years. Over the past year, of combined capital city flips in less than 12 months and of combined regional market flips held for less than 12 months resold at a loss. of capital city dwellings resold between one and two years resold at compared to of properties across the regional markets. The data highlights that 6 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

7 Percentage of annual resales that were flips Combined Capital Cities Combined Regional Markets Percentage of total flips at a loss Combined Capital Cities Combined Regional Markets < 1 year 1-2 years CoreLogic Property Flipping Report December 7 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

8 The New South Wales housing market has been New South Wales Percentage of annual resales that were flips Sydney Regional NSW Percentage of total flips at a loss Sydney Regional NSW < 1 year 1-2 years 8 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

9 New South Wales Percentage of Annual Resales that were Flips, NSW SA4 Regions Percentage of Total Annual Flips at a loss, NSW SA4 Regions SA4 Regions Capital Region Central Coast Central West Coffs Harbour - Grafton Far West & Orana Hunter Valley ex Newcastle Illawarra Mid North Coast Murray New England & North West Newcastle & Lake Macquarie Richmond - Tweed Riverina Southern Highlands & Shoalhaven < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs Sydney - Baulkham Hills & Hawkesbury Sydney - Blacktown Sydney - City & Inner South Sydney - Eastern Suburbs Sydney - Inner South West Sydney - Inner West Sydney - North Sydney & Hornsby Sydney - Northern Beaches Sydney - Outer South West Sydney - Outer West & Blue Mountains Sydney - Parramatta Sydney - Ryde Sydney - South West Sydney - Sutherland CoreLogic Property Flipping Report December 9 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

10 Victoria s housing market has seen Victoria Percentage of annual resales that were flips Melbourne Regional VIC Percentage of total flips at a loss Melbourne Regional VIC < 1 year 1-2 years 10 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

11 Victoria Percentage of Annual Resales that were Flips, VIC SA4 Regions Percentage of Total Annual Flips at a loss, VIC SA4 Regions SA4 Regions Ballarat Bendigo Geelong Hume Latrobe - Gippsland Melboure - Inner Melbourne - Inner East Melbourne - Inner South Melbourne - North East Melbourne - North West Melbourne - Outer East Melbourne - South East Melbourne - West Mornington Penninsula North West Shepparton Warranambool & South West < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs CoreLogic Property Flipping Report December 11 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

12 Queensland has recorded only Queensland Percentage of annual resales that were flips Brisbane Regional QLD Percentage of total flips at a loss Brisbane Regional QLD < 1 year 1-2 years 12 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

13 Queensland Percentage of Annual Resales that were Flips, QLD SA4 Regions Percentage of Total Annual Flips at a loss, QLD SA4 Regions SA4 Regions Brisbane - East Brisbane - North Brisbane - South Brisbane - West Brisbane Inner City Cairns Darling Downs - Maranoa Fitzroy Gold Coast Ipswich Logan - Beaudesert Mackay Moreton Bay - North Moreton Bay - South Queensland - Outback Sunshine Coast Toowoomba Townsville Wide Bay < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs CoreLogic Property Flipping Report December 13 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

14 Values have increased at a South Australia Percentage of annual resales that were flips Adelaide Regional SA Percentage of total flips at a loss Adelaide Regional SA < 1 year 1-2 years 14 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

15 South Australia Percentage of Annual Resales that were Flips, SA SA4 Regions Percentage of Total Annual Flips at a loss, SA SA4 Regions SA4 Regions Adelaide - Central & Hills Adelaide - North Adelaide - South Adelaide - West Barossa - Yorke - Mid North South Australia - Outback South Australia - South East < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs CoreLogic Property Flipping Report December 15 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

16 Western Australia has been seeing values Western Australia Percentage of annual resales that were flips Perth Regional WA Percentage of total flips at a loss Perth Regional WA < 1 year 1-2 years 16 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

17 Western Australia Percentage of Annual Resales that were Flips, WA SA4 Regions Percentage of Total Annual Flips at a loss, WA SA4 Regions SA4 Regions Bunbury Mandurah Perth - Inner Perth - North East Perth - North West Perth - South East Perth - South West < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs Western Australia - Outback Western Australia - Wheat Belt CoreLogic Property Flipping Report December 17 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

18 The Tasmanian housing market has been fairly Tasmania Percentage of annual resales that were flips Hobart Regional TAS Percentage of total flips at a loss Hobart Regional TAS < 1 year 1-2 years 18 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

19 Tasmania Percentage of Annual Resales that were Flips, TAS SA4 Regions Percentage of Total Annual Flips at a loss, TAS SA4 Regions SA4 Regions Hobart Launceston & North East South East West & North West < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs CoreLogic Property Flipping Report December 19 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

20 Northern Territory s housing market has been Northern Territory Percentage of annual resales that were flips Darwin Regional NT Percentage of total flips at a loss Darwin Regional NT < 1 year 1-2 years 20 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

21 CoreLogic Property Flipping Report December 21 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

22 As the rate of value growth has Australian Capital Territory Percentage of annual resales that were flips Canberra Percentage of total flips at a loss Canberra < 1 year 1-2 years 22 CoreLogic Property Flipping Report December Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

23 In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a number of external sources. CoreLogic does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to CoreLogic for the supply of such information. Queensland Data Based on or contains data provided by the State of Queensland (Department of Natural Resources and Mines). In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws. South Australian Data Copyright in this information belongs to the South Australian Government and the South Australian Government does not accept any responsibility for the accuracy or completeness of the information or its suitability for purpose. New South Wales Data Contains property sales information provided under licence from the Land and Property Information ( LPI ). RP Data Pty Ltd trading as CoreLogic is authorised as a Property Sales Information provider by the LPI. the State of Victoria will constitute a breach of the Copyright Act 1968 (Cth). The State of Victoria does not warrant the accuracy or completeness of the Property Sales Data and any person using or relying upon such information does so on the basis that the State of Victoria accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the information supplied. Western Australian Data Based on information provided by and with the permission of the Western Australian Land Information Authority () trading as Landgate. Australian Capital Territory Data The Territory Data is the property of the Australian Capital Territory. No part of it may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission. Enquiries should be directed to: Director, Customer Services ACT Planning and Land Authority GPO Box 1908 Canberra ACT Tasmanian Data This product incorporates data that is copyright owned by the Crown in Right of Tasmania. The data has been used in the product with the permission of the Crown in Right of Tasmania. The Crown in Right of Tasmania and its employees and agents: a. give no warranty regarding the data's accuracy, completeness, currency or suitability for any particular purpose; and do not accept liability howsoever arising, including but not limited to negligence for any loss resulting from the use of or reliance upon the data. Base data from the LIST State of Tasmania Victorian Data The State of Victoria owns the copyright in the Property Sales Data and reproduction of that data in any way without the consent of CoreLogic Property Flipping Report December 23 Copyright RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and

24 For more information contact us or CoreLogic, Inc. No unauthorised use or disclosure. All rights reserved. corelogic.com.au CORELOGIC and the CoreLogic logo are New Zealand and Australian trademarks of CoreLogic, Inc. and/or its subsidiaries.