House Flipping

[fishseller]

is there any money to be made flipping Houses in these strange times , with a pot of around 300K (asking for a friend) could it be possible to make say 50K per flip and sell 2 or more per year ? any one doing it, any success stories, How do you find contacts and find properties to flip,

[Mr Pointy]

This comes up fairly regularly:
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Extra Stamp Duty
6 month rule for buyers & mortgaging
CGT
Cost of trades (can you do it all yourself)
How do you source stock (you may need to "persuade" Estate Agents to call you first)
& a few others

[fishseller]

Mr Pointy said:

This comes up fairly regularly:
https://www.pistonheads.com/gassing/topic.asp?h=0&...

Extra Stamp Duty
6 month rule for buyers & mortgaging
CGT
Cost of trades (can you do it all yourself)
How do you source stock (you may need to "persuade" Estate Agents to call you first)
& a few others

Thank you! it would be cash (no borrowings) ex builder so can do most, all costings inc CGT Stamp Duty has to be factored in to margins, question is can it still be done profitably, or has that boat sailed. I shall pop over to that thread cheers

[bogie]

If I had £300k in cash I would be looking at more passive and tax efficient ways of investing the money, say in the stock market, versus employing myself as a builder.

[Leicester Loyal]

Only if you can do most of the work yourself IMO.

[Birkin1932]

I thought passive investment is what pension funds do, their happy with 4/5 % returns, property done correctly can make so much more.

I do this regularly, it can be done. You must be a cash only buyer, must have fantastically motivated builders and ideally a very friendly estate agent, not for anything dodgy just to tip you off when something is hitting the market you can immediately snap up.

I do a lot in North wales in the holiday home market, lots of peeps are lazy in the second home market and if you make the house mega at the right price, it will sell almost immediately

Good luck

[fishseller]

Birkin1932 said:

I thought passive investment is what pension funds do, their happy with 4/5 % returns, property done correctly can make so much more.

I do this regularly, it can be done. You must be a cash only buyer, must have fantastically motivated builders and ideally a very friendly estate agent, not for anything dodgy just to tip you off when something is hitting the market you can immediately snap up.

I do a lot in North wales in the holiday home market, lots of peeps are lazy in the second home market and if you make the house mega at the right price, it will sell almost immediately

Good luck

Thank you all the rich people I know and its a lot where I live driving top cars all made their money through Properties none would touch the stock market only bricks and mortar buy a house add value rent it out or sell next! the only problem today is they are all to top heavy and overpriced for investments should have got in 30 years ago but with the current crises (Covid) and the worlds economic suicide I think we are heading for a big hit and prices should come down or desperate sellers looking to take a hit for liquidity IMOThe gov cant prop up the Housing market for ever, but I could be totally wrong who knows

[Simpo Two]

Re the CGT, if the OP incorporated would the gain be subject to corporation tax at 18% instead of CGT at 28% (on residential property)? Not my area so just a thought.

[trickywoo]

Simpo Two said:

Re the CGT, if the OP incorporated would the gain be subject to corporation tax at 18% instead of CGT at 28% (on residential property)? Not my area so just a thought.

I don’t know the answer but even if it is taking the money out of a ltd will incur more than 10%, even with your costs written off.