Property Overview

Nestled in the vibrant heart of Cardiff, this prime investment opportunity is a well-maintained end-terrace property situated on Habershon Street. Originally a spacious five-bedroom residence, it has been intelligently converted into four separate studio units, maximising rental potential, and profitability. Currently, the property generates a robust rental income of £35,400 annually, with the potential to reach £40,000 following a modest renovation and tenant turnover. This transition not only boosts monthly cash flow but also places the property within a strong return on investment (ROI) bracket, boasting a 26% ROI in its present condition and an impressive 32% post-renovation.

Location Benefits

Habershon Street's central location offers an array of advantages that contribute to its desirability as a rental market:

Accessibility: The property is conveniently located just a stone's throw from Cardiff's city center, granting easy access to shopping, dining, and cultural attractions, including Cardiff Castle and the National Museum Cardiff.

Transport Links: With Cardiff Central train station nearby, residents benefit from excellent transport connections to London, Bristol, and Swansea, alongside numerous bus routes and major road access.

Community and Amenities: The area is characterised by a diverse community, appealing to students, professionals, and families alike. Local amenities include independent shops, markets, and a lively café scene, ensuring that tenants have everything they need within close proximity.

Educational Institutions: The property is ideally situated near Cardiff University and other educational establishments, making it particularly attractive to students seeking convenient living arrangements.

Green Spaces: Despite its urban setting, the property is close to beautiful green areas such as Bute Park and Roath Park, providing residents with options for leisure and outdoor activities.

Strong Rental Demand: The ongoing demand for rental properties in this area, driven by a mix of young professionals and families, underscores the investment's potential for sustained growth and stability.

Comparable Property Values: Recent sales of comparable properties in the vicinity reflect healthy market values, reinforcing the investment's soundness. The expected end value of this property post-renovation stands at around £340,000, based on market comparisons.

Conclusion
Investing in the property on Habershon Street is not just a financial decision; it’s an opportunity to capitalise on a thriving rental market in one of Cardiff's most sought-after locations. With a solid current income, potential for growth through renovations, and a vibrant community backdrop, this property represents an outstanding investment for those looking to secure a profitable asset in the property market.

Number of Bedrooms (current): Originally a 5 bedroom house that has been converted into 4 separate dwellings. Each complete with kitchen and bathroom.

Is there potential to add a bedroom?: No

Property Asking Price: £300,000

Agreed Sale Price: £265,000

Fair Market Value (DUV): £340,000

Market Status: Off Market - Direct to Vendor Agreed Sale

Why is the property being sold?: The landlord or co-operate selling off assets

Is the property in a lettable condition: Yes

Current rental income:

Unit 1 - £700pcm

Unit 2 - £950pcm

Unit 3 - £650pcm

Unit 4 - £650pcm

Total - £35400

Is the sale price negotiable?: No, negotiations completed.

Property Type: House

Freehold or Leasehold: Freehold

Is the property part of portfolio?: Unknown

Exit Strategy 1: Multi-let / HMO

Exit Strategy 2: Capital Growth

Renovation Budget Proposal: £20,000 for Property Enhancement

Objective

To enhance the rental value of the property on Habershon Street by updating kitchens, bathrooms, fittings, fixtures, flooring, and finishes. The goal is to create a modern, appealing environment that attracts high-quality tenants and justifies a rental increase.Proposed Budget Breakdown

Kitchen Upgrades - 5,000
New appliances: £2,000
Sink, faucet, and plumbing updates: £2,000
Lighting fixtures and installation: £1,000

Bathroom Renovations - £5,000
Sanitary, basins and shower fittings upgrades: £2500
Lighting: £1000
Tiling or boarding: £2000

Flooring Improvements - £4,000
Replacement of flooring in all units (laminate or vinyl): £2,500
Installation of carpets in bedrooms: £1,500

Fittings and Fixtures - £2,000
New door handles and locks: £500
Light switches and electrical updates: £500
Window coverings (blinds/curtains): £1,000

Finishes and Aesthetic Enhancements - £5,000
Fresh interior paint (neutral colors for broader appeal): £2000
Accent walls or wallpaper, cladding in key areas: £2000

Total Estimated Renovation Cost: £20,000

Expected Outcomes

Increased Rental Value: With these upgrades, the rental income is projected to rise to £40,000 annually, enhancing cash flow and ROI.
Attractive Living Spaces: Modern kitchens and bathrooms, along with appealing finishes, will create a "wow factor" that attracts professionals and quality tenants.
Reduced Vacancy Rates: Enhanced aesthetics and functionality will likely result in shorter vacancy periods and potentially higher tenant retention.

BTL Figures

Purchase Price: £265000

Refurb Costs: £20,000

Legal Costs: £2500

Stamp Duty: £14000

Survey: £800

Tiger Burrows Consultation Fee's: £4500

Estimated Rental Income: £3333 (£40,000 per annum)

New Mortgage: £1487.50 (Based on 7% interest rates)

Stress Test Mortgage: £1912.50 (Based on 9% interest rates)

Estate Agent Rates: £330

MOE: £330

Cash Flow Most Likely: £1178.90

Cash Flow Stress Test: £753.90