Tamworth property: Experts warn of risks and rewards of property flipping in Tamworth

But when it comes to 'flipping' properties, not a lot of buyers looking to make quick gains have taken the risk in Tamworth.

Recently, that's begun to change, off the back of a 20 per cent increase in property prices in the city in the last 18 months, according to PRDnationwide Tamworth director Mark Sleiman.

"People have made very good money buying and flipping, but it all comes down to location," he said.

"Location is the most important aspect because there are only a handful of locations here in Tamworth that have exceptional capital growth."

Mr Sleiman said due to Tamworth's stable capital growth over the last decade, it traditionally hasn't been a place where you would buy a property and then sell it fast.

"You'd only pick up between five and 15 percent return," he said.

"Whereas in Sydney there's $50,000 and $100,000 growth quarters, so if you buy well in Sydney and just hold onto it and restore it, you can make upwards of $300,000 and $400,000 with a buy and flip.

"In Tamworth if you make about $100,000 in a buy and flip that's a really good outcome."

Flipping real estate comes with a long list of risk factors, and the promise of a fast return can quickly become a costly exercise, especially with the current high cost of tradies and materials.

Tamworth Property Co general manager Vicki Cooper said it all comes back to location, and ensuring you don't overcapitalise on your renovations.

"What it comes back to is finding an area where you can still buy property fairly cheap and then be able to do it up and get the gain in value," she said.

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"In Tamworth, most people know what the market is like and the areas where you do them up, they snap up so quickly.

"It's got to be the right formula for a flip and the right ratio to what you spend on it and what you can make on it. Location being a very important consideration."

Ms Cooper said there has been a boom in investment property purchases over the past few months, and first home purchases are also high.

"A lot of out-of-town investors are looking at Tamworth, they look at the infrastructure, and council's plans for growth and they see Tamworth as a very attractive prospect," she said.

With property prices booming over the last 18 months, flipping has also been able to come into the equation, Mr Sleiman said.

"Traditionally, it's never been profitable enough, you'd have to hold on to the property for five or 10 years before you see a serious capital gain," he said.

"Whereas we've seen 20 per cent [increase] in recent times which has made it affordable for those that bought 12 or 18 months ago to then flip a property."

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