BRS Project Details
GDV Sensitivity Analysis
Frequently Asked Questions
What is a Buy Refurbish Sell (BRS) strategy?
Buy Refurbish Sell (BRS) is a property investment strategy where you purchase a below-market-value property, carry out refurbishment to increase its value, and then sell it at a higher price. Unlike a basic flip, BRS typically involves more significant works and focuses on the Gross Development Value (GDV) as the target sale price after full refurbishment.
What is GDV in property development?
GDV stands for Gross Development Value — the total market value of the completed development once sold. For a BRS project on a single property, GDV is the expected sale price after refurbishment. For multi-unit developments, it is the combined sale price of all units. GDV is the starting point for any development appraisal.
What is residual land value in a BRS project?
Residual land value is the maximum you should pay for a property to achieve your target profit margin. It is calculated as: GDV minus construction/refurbishment costs minus professional fees minus finance costs minus target profit. If the asking price exceeds the residual land value, the project is not viable at your target margin.
What profit margin should a BRS developer target?
Industry standard for residential development is a minimum 20% profit on GDV or 25% profit on cost. Below these thresholds, the project is considered marginal or unviable. These margins account for the risk, time, and capital invested in the project.
What professional fees should I budget for a BRS project?
Professional fees for a BRS project typically include architect fees (5–8% of build cost), structural engineer, planning fees, building control, quantity surveyor, and project management. As a rule of thumb, budget 10–15% of refurbishment costs for professional fees, rising to 15–20% for projects requiring planning permission.