Question 1

What is property flipping?

Accepted Answer

Property flipping is a UK investment strategy where an investor buys a property — often below market value or in need of work — refurbishes it, and resells it for a profit within a relatively short timeframe rather than holding it as a rental.

Question 2

How do you calculate flip profit?

Accepted Answer

Net flip profit = expected sale price minus total project cost (purchase + buying costs + refurb + bridging interest + holding costs) minus total selling costs (agent fees, solicitor fees, capital gains tax and other selling costs).

Question 3

What costs should be included in a flip?

Accepted Answer

Include the purchase price, stamp duty, legal and broker fees, surveys, auction fees, refurbishment, bridging interest and arrangement fees, utilities and council tax during the works, insurance, staging, then estate agent fees, solicitor fees on sale, capital gains tax and any other selling costs.

Question 4

What is a good property flip ROI?

Accepted Answer

Most UK flippers aim for an ROI on cash invested of at least 15–20%, with strong flips delivering 30%+ once all costs and tax are accounted for. Anything negative or in single digits typically isn't worth the risk and time.

Question 5

Is bridging finance commonly used for flipping?

Accepted Answer

Yes. Bridging finance is widely used in UK property flipping because it lets investors buy quickly (including at auction) and fund refurbishment, then exit by selling the finished property within the bridging term. Interest is short-term and expensive, so it must be modelled carefully.