Five insider secrets for making millions flipping houses

This couple transforms 12 houses a year and sells them for record prices. Now, they’re revealing the five secrets to their success.

The husband and wife team behind Activates Construction just sold another one of their projects for a suburb record.

As a builder and carpenter by trade, Tarah and Adam Hastie have found success where many others are failing by managing the process of building and renovating homes from start to sell — catering specifically to a market of high-income professionals in the inner-city.

Adam and Tarah Hastie from Activates Construction with their kids, Valerie, 6, and Chester, 13, in the home have just sold for $5.1m in Grange, Brisbane. Photo: Lyndon Mechielsen.

“I think people feel really overwhelmed — particularly professionals in full-time jobs — at the prospect of having to build and manage their own home,” Mrs Hastie said.

The Hasties just sold their own home for a new suburb record of $5.1m at 5 Sellheim St, Grange, through Alistair Macmillan of Ray White Wilston.

The kitchen in the property at 25 Sellheim St, Grange, which has sold for $5.1m through Ray White Wilston. Image supplied by Ray White.

“We’re builders, so there’s no such thing as a forever home, really,” Mrs Hastie said.

Activates Construction has managed more than 60 projects in Brisbane since 2007, and average 12 a year these days.

So, what’s their secret?

This house at 22 McCormack Ave, Ashgrove, was a project by Activates Construction.

*Stick to areas you really know. “When you look on a map, you’re not getting the whole picture of an area. You need to be driving the streets, looking at amenities, high traffic areas, etc,” Mrs Hastie said.

*Avoid buying homes with restrictions like character overlays. “In some inner-city locations, you have to take on homes with a character overlay because you don’t have a choice. Just make sure you have your costs down to a fine art.”

*Account for all your costs. “If your intention is to flip, you are susceptible to capital gains tax. Just remember that.”

*Rely on a good team. The Hasties have a team of subcontractors they use regularly.

*Hire help. “It’s often better to hire people to do the painting, rather than do it yourself, because you then end up taking time out of your own job.”

This house at 97 Elfreda St, Enoggera, was a project by Activates Construction.

The Hasties have been watching their peers in the trade collapse under the pressure of soaring construction costs and increasing red and green tape.

“The margins for builders are getting smaller and smaller,” Mrs Hastie said.

“They’re unable to fulfill contracts, which is really, really sad. I know a lot of builders going bust.”

This property at 25 Sellheim St, Grange, has sold for a suburb record of $5.1m through Ray White Wilston. Image supplied by Ray White.

They are still very conscious of prices going up in a housing crisis.

“Building a finished product, we have more control over the cost,” Mrs Hastie said. “Since 2020, we believe building costs have increased 65 to 70 per cent.

“For us, it becomes very frustrating because we are in a growing city where we do have a housing crisis and it’s becoming increasingly difficult to provide additional homes. There’s so much pressure being passed on to builders and developers to achieve what’s being requested. It will just be so unaffordable for so many people.

“We are paying about $100,000 in interest per home in the time it takes to buy, build, renovate and sell, so profit margins are tight.”

Adding to costs are the new National Construction Code regulations that came into effect in Queensland on May 1.

“We’re currently working out how much requiring a 7-star energy rating is going to cost, but it’s looking like a $60,000 to $70,000 increase for what we do,” she said.

Originally published as Five insider secrets for making millions flipping houses