Buying and exchanging to flip is also known as Buy to Sell. This short-term strategy involves buying a BMV property, refurbishing it to a high specification and then selling it quickly for a capital profit. The key to success via this strategy is to ensure you get make a good property investment in the first place (not only will this increase your profit, but it should also provide a bit of leeway if the propertyâ€™s value decreases due to a slump in the market place).
This was a strategy which was extremely popular in the Nineties and Noughties, prompting a huge rise in TV property make-over shows in the UK. The benefits are that youâ€™ll make a profit much faster than investing in a buy-to-let and, unlike the latter, you wonâ€™t have to furnish it or spend time finding tenants. You can reinvest the profit you made on the sale in another property and increase your profit with each new venture. The aspect to watch is to keep refurbishment costs to a reasonable minimum. Expect an ROI of 15 to 35 per cent.