House Flip Profit Calculator

What makes a good house flip in Australia?

A profitable flip typically targets a gross profit margin of at least 15–20% of the purchase price — enough to cover costs and provide a reasonable return. Tight margins get eaten up by unexpected expenses.

The 70% rule explained

A widely used rule in property flipping: don't pay more than 70% of the After-Repair Value (ARV) minus renovation costs.

Maximum purchase price = (ARV × 0.70) − renovation costs

This leaves room for holding costs, selling costs, and profit margin.

Common costs that kill flip margins

• Stamp duty: 3–6%+ of purchase price depending on state
• Agent commission: Typically 1.5–3% of sale price in Australia
• Renovation blowouts: Budget 15–20% contingency on top of quotes
• Holding costs: Mortgage, council rates, insurance for every month you hold
• Capital Gains Tax: If held under 12 months, the full profit is taxable as income
• GST: May apply if you're classified as a developer — seek advice

CGT and the 12-month rule

In Australia, if you sell within 12 months of purchase, the full capital gain is added to your income and taxed at your marginal rate. Holding for more than 12 months halves the taxable gain (50% CGT discount). This can dramatically affect net profit on flips.