Flip or Buy To Let this 3 story in Abertillery
Flip or Buy To Let this 3 story in Abertillery
Reserve this investment opportunity for £399
Figures in Brief:
Sale Agreed at: £65,000
Estimated Done Up Value: £115,000
1st exit: Flip Potential Profit: £18,076
2nd exit: Cash Flow (BTL): £ 188.44
Property Description: A lovely 4 bedroom semi detached house set over 3 storeys - 1 of only 4 of this style on the road. Fairly unique in style and not common to the area. Many original features!
The property has a large back garden with steps leading up to it plus a door and a (rickety) bridge on the first floor then joins the whole thing up.
From the front door (which is on the side of the building) go into the hallway where there is a beautiful original staircase with a large Victorian stair post (see pic). on the right hand side there is a lounge with large window and views over the valley. Open fireplace.
From the end of the hallway there is a door into the kitchen and then turn right through the arch into the dining room where there is a large window with views over the valley and a fireplace.
From the stairs, go up on to the first floor where there are three bedrooms, two doubles to the front with original fireplaces and an L shaped single to the back. this room holds the door to the bridge.
From the next set of stairs go up to the top floor where there is a large bedroom and a bathroom. The top bedroom holds the best views.
From the front door turn right to access the garden at the rear. This is of a generous size and holds good potential. Parking is on the road.
Property Information:
Property Address: Commercial Road, Llanhilleth. NP13 2HS
Number of Bedrooms (current): 4
Is there potential to add a bedroom?: No
Reception Rooms: 2
Bathrooms/shower-rooms: 1
Property Asking Price: £80,000
Agreed Sale Price: £65,000
Fair Market Value (DUV): £115,000-£120,000 (numbers based on £115k)
Comparable 1: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=51177600&sale=6470062&country=england SOLD £139,950
Comparable 2: https://www.rightmove.co.uk/property-for-sale/property-73406686.html SSTC (5 beds) £130k (only part done up)
Comparable 3: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=70207154&sale=6958558&country=england SOLD £125k
If no comparables, please state why there are no direct comparables: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=56889430&sale=5418127&country=england SOLD £112k
https://www.rightmove.co.uk/property-for-sale/property-83539298.html £123k SSTC
https://www.rightmove.co.uk/property-for-sale/property-79971596.html £179,950 SSTC
https://www.rightmove.co.uk/property-for-sale/property-81156842.html £147,500 SSTC
FOR SALE:
https://www.rightmove.co.uk/property-for-sale/property-85710722.html £145k
https://www.rightmove.co.uk/property-for-sale/property-85708355.html £185k
Market Status: Sale Secured by Sourcing Agent
Why is the property being sold?: Sale identified by sourcer (open market)
Is the property in a lettable condition: Yes
Is the sale price negotiable?: No
Property Type: House
Freehold or Leasehold: Freehold
Is the property part of portfolio?: No
Exit Strategy 1: Cash Purchase Flip (or bridge)
Exit Strategy 2: BTL
Exit Strategy 3: Capital Growth
If HMO strategy please select: N/A
Potential Target Demographic: Families
Refurbishments Required
Estimated Refurbishment Costs: £19,000
Tidy the garden (large budget £500)
Guttering completely blocked with plant life (see pics)
Cap off open soil drain (see pic)
Replace bridge structure
Rip out existing
x7 New internal doors needed
Need new boiler and central heating system/rads
Need new kitchen
Need new bathroom
Paint and decorate throughout
Need new flooring
How to add value to this property:
The property is set over 3 storeys and the only wc is on the very top floor.
It's possible to move the bathroom to the middle floor in the small bedroom and then the bathroom becomes a larger bedroom
Or put an additional wc on the ground floor, potentially underneath the stairs
Put in a bridge between the first floor door and the garden to connect the two up
The property benefits from a large garden - this could be a lovely patio terrace and lawn area
Flip Figures (Buy, Renovate, Sell)
Purchase Price: £65,000
Refurb costs: £ 19,000
Entry legal costs: £1200
Exit legal costs: £1000
Stamp Duty: £1950
Survey: £450
Broker Fee: £400
SMP Consultation Fee: £3997
Estate Agent selling fees: £1573
RESALE PRICE: £ 115,000
Potential Profit: £18,076
BTL Figures (Buy to let)
Purchase Price: £65,000
Refurb costs: £19,000
Legal costs: £1200
Stamp Duty: £1950
Survey: £ 450
Broker Fee: £400
SMP Consultation Fee: £3997
Rental Income: £550
New Mortgage (3.5%): £251.56
Estate Agent Rate (10%): £55
Management & operating Expenses (10%): £55
CASH FLOW: £188.44
Money left in deal £8100
Money out in 3.5 years
Disclaimer : Perform your own Due Diligence. The ROI above is not a guaranteed return and is an indication of the potential based on achieving the relevant figures in all aspect of the purchase, refurbishment and refinance/resale. All figures will be subject to the buyers status and market fluctuations.
Area Description:
This part of the South Wales valleys forms part of a thriving community, nestled in the hills inbetween the Heads of The Valleys Road, which offers excellent links to Abergavenny and the South, the A4042 corridor, Newport and the M4 corridor to rest of Wales and Bristol. The area has excellent schools, facilities and infrastructure.
The Abertillery area has had much investment in recent years in the town centre, car parks, shops, theatre and roads infrastructure.
Ebbw Vale is most famous for its old Steel Works site, which is currently being regenerated and the old site will soon hold the new hospital, and railway station direct to Cardiff, bringing valuable links to the area. It is a popular town for young families as it offers a fantastic sense of community spirit, opportunities and new development, especially since the recent announcement to turn the festival park into a major leisure and tourist destination.
Here’s the link: https://www.southwalesargus.co.uk/news/17544786.masterplan-revealed-for-plans-to-turn-ebbw-vales-festival-park-into-a-major-leisure-and-tourist-destination/
Nearby Cwmbran is where the new super hospital is currently being built and opens in spring 2021. The super hospital will create 600 new jobs when it is open so there will be high demand for housing in the area and house prices will inevitably increase in the next 2 years.
It’s currently an investor’s market in this area, so a great chance to grab distressed property and add value whilst the prices are at this level.
Here’s a link to the latest update.
https://www.walesonline.co.uk/news/health/grange-university-hospital-cwmbran-details-16029785
Links/Infrastructure:
One of the other main strengths of this area is high rental demand due to its proximity to Newport. It’s easy to commute – just 15 miles, 30 minutes in the car.
Same distance and time to get you on to the M4 where it’s easy to travel to Cardiff, Swansea and in the other direction Bristol.
Newport is a thriving city with good employment levels, refurbished city centre and thriving night life.
From Abertillery you can commute via M4 to Bristol and the surrounding industrial areas in 60 minutes.
In the opposite direction the heads of the valleys road infrastructure is being made into dual carriage way all the way to Merthyr Tydfil. The A465 dual carriageway between Gilwern and Brynmawr is scheduled for completion in 2019. The latest phase of the Heads of the Valleys road infrastructure project is costing around £220m.
So far Section 1 between Abergavenny and Gilwern, Section 3 between Brynmawr and Tredegar, and section 4 between Tredegar and Dowlais Sections 5 and 6 are scheduled to be completed in 2020.
Much of it is already done but it's not yet complete.
Here's a link to the works going on: https://www.walesonline.co.uk/business/business-news/how-key-section-heads-valleys-11765260
Train/Bus:
Nearest rail link is Llanhilleth – 2 miles. It has train links that get you direct to Cardiff central in less than 1 hour.
Good bus links in the area to all nearby towns.
Entertainment/Leisure:
Good selection of local bars, restaurants and a cinema. Nearby Ebbw Vale sports centre has some great facilities including restaurants, bars, shops, gym, leisure centre and swimming pool. Nearby in Abertillery there is kick boxing, yoga, gymnastics and an athletics club. Also a rugby club , bowls and golf club.
Abertillery is fast becoming known as a hot spot for Foodies in the Blaenau Gwent region:
The Guardian Café at Six Bells was voted as second best place to eat in Blaenau Gwent by Trip Advisor in 2019. Best known for its tremendous Sunday roast and homemade cakes!
Berry’s Bar and Grill was voted third best place to eat in Blaenau Gwent by Trip Advisor in 2019, best known for its Yorkshire pudding towers!
There are a number of shops, restaurants and bars in Abertillery. There is a large Tesco, Co-Op, Trinant Shopping centre, public parks, and Cinema within a few miles. There is also the Metropole theatre and another theatre in nearby Beaufort.
Hotels:
Accommodation Premier Inn 3 star at Ebbw Vale
SCHOOLS within the area:
• NEW SUPER SCHOOL campus has been built at Six Bells
• SoFrydd Primary School
• Trinant Primary School
• Eden Education Centre
• St Illfyd’s
• Tillery Street Campus (fantastic new facility which offers all levels of school to 18)
Nearest Train Station: Llanhilleth 0.3 miles
Any key journey times: Newport 14 miles, 28 minutes in the car.
Same distance and time to get you on to the M4 where it’s easy to travel to Cardiff, Swansea and the rest of Wales
Bristol 43 miles,1 hour
Superhospital in Cwmbran, 11 miles, 20 mins in car
From Abertillery you can commute via M4 to Bristol and the surrounding industrial areas in 60 minutes.
Ebbw Vale 6.5 miles, 11 minutes
Abergavenny, 15.9 miles, 29 mins
Merthyr 16.8 miles, 28 minutes
The fine Print
SMP operates in trust with its potential investors. SMP is registered with the Property Ombudsman Group. SMP prides itself on delivering BMV deals with accuracy and confidence. The sourcing fee for this deal is £3997(inc VAT) which is paid on completion of the sale. A £399 deposit is required to secure the deal which is refundable if the investor decides not to proceed to an agreed sale with the vendor, ie after viewing. The deposit is not refundable if the investor pulls out of the purchase after sale agreed.
SMP takes no responsibility if deals “fall through” for matters out of our control. It is always highlighted that property investment carries an element of risk and ultimately a deal may not be successful. Therefore deal owners are advised to carry out their own due diligence to confirm for themselves the findings SMP present. SMP has no control of the UK property market prices and investments can be lost or profit margins shortened with the fluctuating market