Refurb and Flip

Buy below market value, add value through renovation, then sell for a profit. A short-term capital-gain play rather than an income strategy.

Typical ROI 15 to 25% margin on cost
Timeline 3 to 9 months
Difficulty Medium
Key metric GDV

Strategy overview

  • Source a below-market-value property, often from a motivated seller
  • Add value with a cosmetic-to-moderate refurbishment
  • Sell at full market value
  • Recycle the profit into the next project

Advantages

  • Delivers a lump sum rather than slow-drip income
  • Faster capital turnaround than a long-term hold
  • No tenants or ongoing management
  • Cleaner, quicker exit

Considerations

  • No ongoing income during the project
  • Exposed to market movement and sale timing
  • Capital Gains Tax on profit; transaction costs (SDLT, fees) eat margin
  • Cost overruns and slippage kill thin deals
  • Bridging finance is expensive — accurate cost and end-value estimates are essential