3 Bed Home

WITH OVER 100% R.O.C.E AVAILABLE AS AN HMO.

  • 87.33% R.O.C.E Available
  • 22.72% Gross Yield After Refurb
  • £1900 PCM Gross Rental
  • Upcoming area With Large Incoming Investments
  • Multiple Strategies Available
  • Great Location

*Figures quoted rely on following the strategies we set out, using our team and expertise and are not guaranteed.

Overview

This 3 Bed mid terraced property is located in one of the most sought after areas of Swansea.  It makes money as an investment as a straight rental property but, by utilising our plan would make a great return of 66.22% R.O.C.E as a 4 bed H.M.O and 87.33% as a 5 bed H.M.O.  We have plans for both options but a 5 bed H.M.O would require a H.M.O licence from Swansea council who approved 7 out of 8 licence applications in the last year with the other being withdrawn by the applicant.  See case study here

Gallery


[smartslider3 slider=4]

Location


This property is located in one of the most desirable areas of Swansea with plentiful recent and future investment incoming. Swansea university has just expanded and has been granted permission for a 640 bed apartment block which is just one indication of the growth of this hub that serves the South West of Wales.  It is situated near the site of the possible new multi billion pound tidal lagoon and near the beautiful Swansea bay and Gower peninsulas which are just some of the great local attractions.

Local Area  & Amenities


The property is Located in South Wales. It is within an area of mostly terraced properties giving traditional family households. 15-20 minutes walk to the train station. High street restaurants & takeaways, shops and bars within walking distance and a little further afield to major towns. On street unrestricted and abundant parking at the front of the property and rear garden lane access and storage.

Financial Information


The property was marketed at £65,000 and has been secured at £52,000.  

The street has an average estimated value of £116,676 and has enjoyed capital growth of approximately 24% over the last 5 years with further growth expected due to local increased demand and regeneration of the area.

Rental Income for this property would be in the region of £500 pcm which would equate to nearly 10% after factoring in refurb costs but excluding all fees.

Guaranteed rental may be available on this property.

As a part of our 21 point process we have a full calculations spreadsheet that we will give, show and walk through before you commit to purchase.

Downside

The housing market could be due a downturn and we expect price volatility with Brexit.  The rent yield is solid but in the event of market turmoil you would need to hold onto the investment for a while before house prices rise.  During periods of market turmoil, properties almost always  hold their value better than most stocks and currencies/cash.

We expect the value of this property to double over the next 20 years, property consistently does this across the board.

Refurbishment


  1. Kitchen - £1,600

  2. Bathroom - £900

  3. Decoration - £1,500

  4. Flooring - £1,200

  5. Electrical works - £1,200

  6. Internal doors and woodwork - £1,200

  7. Plastering – £1,200

  8. Heating works - £1,100

  9. Garden & Exterior - £500

Total refurb for full package £10,400

Exit Strategies


Once refurbished your total spend will be around £68,000 and the house will have a market value of £75,000.  You could exit at that point but the returns would be low after agents fees so we recommend taking the 12.07% rent yield for 3 years until the Brexit volatility has died down before making the next decision on whether to stick with the rent yield or sell.

After refurb you can take out a Buy To Let Mortgage and withdraw 75% of the value of the property - £56,785 which would leave you having £6542 left in which you would recover gross in 12 months and net, with management fees and a mortgage interest rate of 5% in 18 months, everything after that would be pure profit.

Comparables


Zoopla Comparable Properties with Same No. Bedrooms For Rent:

Similar House Style same layout within 1 mile £500 pcm

Zoopla Comparable Properties with Same No. Bedrooms Sold:

Sold for: £75,000 July 2014. Same House Style within 0.5 miles

Sold for: £76,000 Dec 2015. Same House Style within 0.5 miles

Zoopla Comparable Property with Same No. Bedrooms For Sale:

For Sale: £79,995. Same House Style within 0.5 miles

Terms


The information contained in this presentation is an overview of the

property and investment available. Please note at this stage it is within

non-disclosure status.

In order to secure the investment opportunity a £2000 non-refundable

deposit is required, along with ID and proof of funds.  Please note that if

you as the investor decide to pull out of the deal at any time the non-

refundable deposit will remain with Nest Wise Properties Ltd, unless

there is a change of circumstance with the vendor and out of our control.

(Should this situation occur, Nest Wise Properties Ltd shall refund the

deposit minus £500 covering our administration and time)

Fees


The fees:

  1. Finder’s Fee - £3,500

  2. Project Management Fee - £2,450

  3. Tenancy Fees – TBC via Local Letting Agent

What Next


To secure this great opportunity today call or email Meirion - Phone - Email or click the button to get started.