BRR Newport
Buy Refurb Rent
Secured at £335,000
(£67,000 per flat, Potentially £120,000 per flat once renovated).
Large Town House – converted into 5 self contained flats
Excellent opportunity to acquire 5 self-contained units in City Centre location.
Units can be let out on AST agreements, HMO basis or Serviced Accommodation
4×1 bedroom flats and 1×2 bedroom flat.
Floor Plans available
This is a great opportunity to add this town house to your portfolio, split into 5 self contained units. Currently consisting of 4×1 bedroom flats and 1×2 bedroom flat. However, there is scope to convert the 1 bedroom units into 2 bedroom units.
The properties are located in the city centre, the train station is a 3 minute walk from the property. Local amenities, bars, shops and restaurants are all within 2 minute walk from the property.
Newport is the highest rising market in the UK at the moment, with infrastructure and investment being put in by the Welsh Government along with the Severn Bridge toll being abolished at the end of 2018 – this is bringing many people across the water from Bristol and we are seeing an increase in property prices at rapid pace. Experts have estimated property values are set to rise by another 20-40% in the coming 12-18 months.
| Asking Price | The property has been secured at £335,000. £15,000 below asking.
Once renovated the re-value of the property is in the region of £500,000 to £600,000. |
| Rental Income | If the flats are rented on AST: (Minimum) Average rental for a 1 bedroom flat is £500 pcm and 2 bedroom flat at £525 pcm. Giving monthly rental income at £2,525 Annual Income = £30,300, yield 9% (If the 1 bedroom units are converted into 2 bedroom units: Rental income per month is £2,625 pcm, annually = £31,500, yield 9.4% Given the location the property, there is scope to utilise some or all of the units as serviced accommodation units. On average renting the units for £65 per night per unit, would bring an income of: £65 per unit per night x 5 = £325 night, £2,275 per week, £9,100 per month, £109,200 per annum @ 100% occupancy rate. At 70% occupancy rate = £221 per night, £1547 per week, £6,188 per month, £74,256 per annum At 50% occupancy rate = £162.50 per night, £1,137.50 per week, £4,550 per month, £54,600 per annum |
| Running Costs | As running units as AST agreements, there would be no costs in terms of bills. (If you run the property as a Serviced Accommodation unit, please factor in bills such as gas, electric, council tax, water rates, broadband, management and cleaning.) However, you need to take into consideration the mortgage costs if purchasing with a mortgage. (As a guide – Information taken from moneysavingexpert.co.uk comparison for b2l mortgages = repayments at £400 PCM interest only.) Deposit: £83,750 Legals: £1,500 Stamp: £6,750 Renovation: £50,000 (£10,000 per unit) Sourcing: £8,000 Over-seeing: £2,225 Total: £152,225 Giving ROCI @ 19.9% |
| Refurbishment Required | The property is in a generally good condition. However, the bathrooms and kitchens are dated and would benefit from being replaced. Along with new flooring and decorating in each flat. |
| Refurbishment Costs |
Total = £10,000 Once each unit has been renovated, the overall property would be revalued in the region of £500,000+ (property values are set to rise by another 20-40% in the coming 12-18 months.) |
| Sourcing Fee
Deposit |
£8,000
£4,000 to secure the deal, identification and proof of funds required. |
| Overseeing of Refurbishment | To over-see the refurbishment on the property, the fee is £2,225. |
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