{"id":13415,"date":"2017-08-24T01:00:51","date_gmt":"2017-08-23T15:00:51","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=13415"},"modified":"2017-08-24T01:00:51","modified_gmt":"2017-08-23T15:00:51","slug":"the-hook-and-flick-strategy-pete-wargent","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-hook-and-flick-strategy-pete-wargent\/","title":{"rendered":"The &#039;hook and flick&#039; strategy &#8211; Pete Wargent"},"content":{"rendered":"<p>We discover if \u2018hook and flick\u2019 is a viable strategy in this market.\u00a0 <strong>Pete Wargent<\/strong> gives us the lowdown.<br \/>\n<strong>Transcript :\u00a0<\/strong><br \/>\n<b>Kevin:<\/b>\u00a0 Pete Wargent joins me now. Of course, his blog is very, very popular: PeteWargent.blogspot.com.<br \/>\nGood day, Pete. How are you doing?<br \/>\n<b>Pete:<\/b>\u00a0 Good thanks, Kevin.<br \/>\n<b>Kevin:<\/b>\u00a0 Mate, you\u2019re doing a presentation in Sydney, coming up in October too \u2013 7<sup>th<\/sup> of October. What\u2019s that about?<br \/>\n<b>Pete:<\/b>\u00a0 That\u2019s for people interested in some no-nonsense financial education. It\u2019s a one-day workshop. No up-selling to more expensive courses; it\u2019s just straight talking from five financial experts.<br \/>\n<b>Kevin:<\/b>\u00a0 Okay. If you want to get a bit more information about that, go to Pete\u2019s blog, which we\u2019ll tell you about, again, at that the end of this chat.<br \/>\nPete, of course, is well known for having written a number of books about finance and the market. <i>Get a Financial Grip<\/i> was one. There\u2019s a new one coming out in October, too \u2013 watch out for it \u2013 called <i>The Wealth Way<\/i>.<br \/>\nPete, I want to talk to you specifically about hook and flick. I know that\u2019s a terminology that really talks about flipping property. Is this a good time to be doing it, or is any time a good time to do it?<br \/>\n<b>Pete:<\/b>\u00a0 I was going to say, I think that\u2019s what in England, we would call flipping.<br \/>\nYes, in Australia, you do find if you\u2019re flipping properties, then you have transaction costs when you buy and sell, and that can be quite a high hurdle to clear. I think in the current market in Australia, there\u2019s less appetite for apartment development at the current time. But that means there\u2019s more competition for splitter blocks and renovators.<br \/>\nYou can still pull it off, but you\u2019ll probably want to find a market that is rising and delivering some capital growth for you, because that can help to improve the margins.<br \/>\n<b>Kevin:<\/b>\u00a0 Apart from where you buy, is there a particular type of property? As an example, I know that a number of people have made really returns out of buying some of those older style units where they can add an extra bathroom by cutting down on the laundry. Are they the sorts of twists you look for in this type of investment?<br \/>\n<b>Pete:<\/b>\u00a0 Yes, definitely. In Brisbane and Queensland, the older style Queenslanders are another type of property that people look to renovate, particularly by raising them up. So, there are different types of properties you could approach, but there is some margin there for willing renovators.<br \/>\n<b>Kevin:<\/b>\u00a0 What do you think are the signs that make a good hook-and-flick property? What would you look for?<br \/>\n<b>Pete:<\/b>\u00a0 It\u2019s all about doing the numbers. It\u2019s very much a numbers game. If you have stamp duty and transaction costs to pay, when you buy and sell, then you need to make sure that there\u2019s enough margin in the development. So, it\u2019s really about thinking about what is your end product and sticking to the budget.<br \/>\n<b>Kevin:<\/b>\u00a0 It\u2019s one of the golden rules of investing in real estate, isn\u2019t it, that you\u2019ll make money when you buy, not necessarily when you sell?<br \/>\n<b>Pete:<\/b>\u00a0 Yes, that\u2019s right. There\u2019s something I was alluding to there before. To go back two or three years ago, there was a lot of lot of competition for sites that you could develop with apartments and now that\u2019s much less so the case, and therefore, there\u2019s a lot more competition for a lot of these sub-dividable blocks and particularly for renovator-style properties. So, you need to do your research and buy well.<br \/>\n<b>Kevin:<\/b>\u00a0 You mentioned earlier, in Queensland, the number of splitter blocks. These are houses on two blocks of land. They may be two now, or they could have the potential to do that. Was that something that mainly happened in Queensland, or did it happen in other parts of Australia as well?<br \/>\n<b>Pete:<\/b>\u00a0 Yes, you can find blocks all over the country that can be sub-divided. The thing is, if you\u2019re looking in Brisbane in particular, you would look at some of the 810 square meter blocks, many of which have now been split into 405 small blocks, as being standard size. There are certain rules as well, depending on the zoning from the city plan. So, if you\u2019re close to commercial property, you can sometimes divide smaller blocks too.<br \/>\n<b>Kevin:<\/b>\u00a0 Okay. Just summing it up for you, the golden rules if you want to get into turning property over quickly, what would you say are the top three recommendations, Pete?<br \/>\n<b>Pete:<\/b>\u00a0 Firstly, you have to do a lot of research into the type of property you\u2019re going to buy and the end product you\u2019re going to deliver. Secondly, spend a lot of time on the budget, and also, I would say the third thing is allow for contingencies because there are often unforeseen costs when you\u2019re doing a development.<br \/>\n<b>Kevin:<\/b>\u00a0 Pete Wargent. I mentioned that blog, right at the start. I\u2019ll mention it again: PeteWargent.blogspot.com. Look on for some great content and also some details about that no-nonsense financial education program that Pete is running on the 7<sup>th<\/sup> of October in Sydney. Pete, thank you very much for your time. Look forward to that new book coming out, too, <i>The Wealth Way<\/i>. When\u2019s that due out?<br \/>\n<b>Pete:<\/b>\u00a0 That\u2019s also out in October, Kevin, so keep an eye out for that.<br \/>\n<b>Kevin:<\/b>\u00a0 Wonderful. Look forward to it. Send me a copy, mate, and we\u2019ll have a chat to you when it comes out.<br \/>\n<b>Pete:<\/b>\u00a0 Sounds great.<br \/>\n<b>Kevin:<\/b>\u00a0 Good on you. Pete Wargent there, and it\u2019s PeteWargent.blogspot.com. Thanks, Pete. Talk to you again soon.<br \/>\n<b>Pete:<\/b>\u00a0 Pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We discover if \u2018hook and flick\u2019 is a viable strategy in this market.\u00a0 Pete Wargent gives us the lowdown. Transcript :\u00a0 Kevin:\u00a0 Pete Wargent joins me now. Of course, his blog is very, very popular: PeteWargent.blogspot.com. Good day, Pete. How are you doing? Pete:\u00a0 Good&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":14640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,11,13,36,21,22,25],"tags":[101],"class_list":["post-13415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-renovation-topic","category-research-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The &#039;hook and flick&#039; strategy - Pete Wargent - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-hook-and-flick-strategy-pete-wargent\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The &#039;hook and flick&#039; strategy - Pete Wargent - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"We discover if \u2018hook and flick\u2019 is a viable strategy in this market.\u00a0 Pete Wargent gives us the lowdown. 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