The profit you make will heavily depend on the project’s cost. Don’t underestimate the time and money it’ll take to complete the project. Factor in all the additional fees there are in buying a property, as well as the taxes you’ll pay after selling.
Some people flip property through a limited company, paying corporation tax when selling, which could end up being less than paying personal income tax (Those who acquire or develop for resale are normally regarded as “trading” not investing and profits on sale are taxable as income).
What does the property need? This should be answered before buying the property. This can include:
- garden landscaping or decking
- converting a loft or basement or adding a conservatory
- rewiring or re-plumbing
- a new kitchen or bathroom
- required safety checks - electrical checks, smoke alarms and carbon monoxide detectors, heating and hot water…
You want to make the property as appealing as possible to buyers, to be able to sell quickly.