Property Description: Property Overview: The property at New Houses is a large three-floor house located in the heart of Merthyr Tydfil. This spacious residence presents a significant opportunity for investors due to its extensive potential for modernisation and enhancement. The property has recently secured a sale agreed at £92,000, a favourable reduction from the original asking price of £120,000, indicating a positive negotiation outcome.

Investment Opportunity: This house requires a full modernisation, making it an ideal candidate for a renovation project. The estimated investment of £50,000 for refurbishments is expected to elevate the property's value significantly. Once modernised, the property is anticipated to achieve an estimated market value of £180,000.

Profit Potential: After accounting for the total investment and considering the expected sales price, the projected profit margin stands at approximately £25,000. This represents a solid return on investment, especially in a market where demand for renovated properties is high.

Market Context: Merthyr Tydfil has seen a revitalisation in recent years, with increased interest from both first-time buyers and investors looking for affordable housing options. The area boasts a range of amenities, including schools, parks, and shopping facilities, making it an attractive location for families and young professionals alike. The local real estate market is showing signs of growth, with property values on the rise, further enhancing the investment appeal of this property.

Conclusion: The property New Houses represents a compelling investment opportunity in a dynamic area of Merthyr Tydfil. With the right renovations, this large house can be transformed into a desirable home, yielding a profitable return upon sale. Investors should consider this property for its strong upside potential and the favourable market conditions currently present in the region.

Number of Bedrooms (current): 3

Is there potential to add a bedroom?: Yes

Reception Rooms: 2

Bathrooms/shower-rooms: 1

Property Asking Price: £120,000

Agreed Sale Price: £92,000

Fair Market Value (DUV): £180,000

Comparable 1: Sold £160,000: https://www.rightmove.co.uk/house-prices/details/england-68673176-19166401?s=c3d7c767ffbf620863aa477e44c9e471fbdea818c9ac23e467b8396b7ab05e38#/

Comparable 2: New Build Sold £199,950: https://www.rightmove.co.uk/properties/151078433#/?channel=RES_BUY

Comparable 3: Sold £180,000: https://www.rightmove.co.uk/properties/152800676#/?channel=RES_BUY

Comparable 4: Requires full renovation, same street, sold £150,000: https://www.rightmove.co.uk/house-prices/details/england-79428017-21348580?s=3a2ef69e223c2dd5cd54be448a90c54e2a13942213a9ec62139e03f87d42b267#/

Comparable 5: Sold £169,995: https://www.rightmove.co.uk/properties/147038807#/?channel=RES_BUY

Comparable 6: Sold £199,950: https://www.rightmove.co.uk/properties/149258744#/?channel=RES_BUY

Comparable 7: Sold £185,000: https://www.rightmove.co.uk/properties/154009991#/?channel=RES_BUY

Comparable 8: Sold £180,000: https://www.rightmove.co.uk/properties/155118665#/?channel=RES_BUY

Comparable 9: Sold £185,000: https://www.rightmove.co.uk/properties/154813019#/?channel=RES_BUY

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

Potential Target Demographic: Families

Refurbishments Required: Week 1: Demolition and Preparation
Rip out existing fixtures and fittings as needed.
Prepare the site for construction, ensuring all debris is removed and the area is clear.
Conduct damp prevention work to protect the property.
Install new back PVC French doors to the garden.

Week 2: Bathroom Relocation and Bedroom Creation
Move the bathroom upstairs, ensuring all plumbing and electrical connections are properly installed.
Frame and prepare the space for a large bedroom created from the third bedroom upstairs.
Begin opening up the downstairs area for an open-plan kitchen and living space.

Week 3: Electrical Work
Re-wire the property, including the installation of spotlights.
Ensure all electrical work meets safety standards and is ready for final inspection.

Week 4: Heating Installation
Install new radiators and Thermostatic Radiator Valves (TRVs).
Confirm that the new gas boiler is functioning properly and integrated with the new heating system.

Week 5: Plastering
Complete plastering throughout the property, including the new bathroom and bedroom, to create a smooth finish for painting.

Week 6: Kitchen Installation
Install a new contemporary kitchen, including cabinets, countertops, and appliances.
Ensure plumbing and electrical connections are securely made.

Week 7: Bathroom Suite Installation
Install a new bath suite in the relocated bathroom, including bathtub, toilet, sink, and any additional fixtures.
Ensure all plumbing is correctly connected and tested, retaining a downstairs WC and utility room.
Clear and prepare the back garden.

Week 8: Woodwork and Finishing Touches
Install new woodwork, including doors, skirting boards, and architraves.
Begin painting and decorating throughout the property to refresh the interior.
Week 9: Flooring Installation
Lay new carpets and flooring in all appropriate areas, ensuring a cohesive look throughout the home.

Week 10: Final Touch-Ups
Conduct a thorough inspection of all completed work to ensure quality and compliance with standards.
Address any final touch-ups in painting, flooring, or fixtures.

Week 11: Final Inspection and Walkthrough Preparation
Perform a comprehensive review of the property.
Prepare for the final walkthrough by ensuring all installations meet expectations.

Week 12: Final Walkthrough and Handover
Conduct a final walkthrough with stakeholders to showcase completed work.
Ensure all documentation and warranties are provided for installed fixtures and systems.
Officially hand over the property, ready for sale or occupancy.

This structured schedule allows for a systematic approach to renovation, ensuring all aspects of the project are completed efficiently and to a high standard.

Estimated Refurbishment Costs: £50,000 (This estimated renovation budget includes a 10% PM fee for Tiger Burrows to manage the renovation)

Flip Figures

Purchase Price: £92,000

Refurb Costs: £50,000

Entry Legal Costs: £1600

Exit Legal Costs: £1000

Stamp Duty: £4600

Survey Costs: £450

Broker Fee: £0

Tiger Burrows Consultation Fee: £2997

Estimated 6 months bills costs: £750

Estate Agent Selling Fees: £2808

Total Costs for investor: £155,205

Re-sale price (DUV): £180,000

Estimated Flip Profit: £25,000 (is done with cash)

BTL Figures

Purchase Price: £92,000

Refurb Costs: £50,000

Legal Costs: £1600

Stamp Duty: £4600

Survey: £450

Tiger Burrows Consultation Fee's: £2997

Estimated Rental Income: £950

New Mortgage: £562.50

Stress Test Mortgage: £675

Estate Agent Rates: £95

MOE: £95

Cash Flow Most Likely: £197.50 at 5%

Cash Flow Stress Test: £85 at 6%

Merthyr Tydfil, located in South Wales, has been undergoing significant transformations that make it an attractive area for property investment. Here are some key points regarding the area's infrastructure upgrades and potential benefits for investors:

1. Improved Transportation Links

• Bypass Roads: The development of bypass roads has enhanced connectivity, reducing travel times to major cities like Cardiff and Swansea. The Merthyr Tydfil bypass, specifically, has alleviated congestion in the town centre and improved access for commuters.

• Public Transport: The town is served by a railway station with regular services to Cardiff, enhancing its appeal for those commuting to the capital for work or leisure.

2. Infrastructure Investments

• Regeneration Projects: There have been various regeneration initiatives aimed at revitalising the town, including investments in public spaces, shopping areas, and community facilities. This not only improves the quality of life for residents but also attracts new businesses and visitors.

• Funding and Development: Local authorities and government bodies have secured funding for infrastructure improvements, which are crucial for sustaining economic growth and enhancing property values.

3. Economic Growth and Employment Opportunities

• Job Creation: The region has seen growth in various sectors, including retail, hospitality, and tourism, which are bolstered by improved infrastructure. This creates job opportunities and attracts a workforce, driving demand for housing.

• Business Investments: The influx of businesses into the area, supported by enhanced transport links and local amenities, fosters a more robust economy, further increasing property demand.

4. Affordability and Potential for Growth

• Affordable Housing Market: Merthyr Tydfil offers relatively affordable property prices compared to neighbouring areas like Cardiff. This affordability attracts first-time buyers and investors looking for rental opportunities.

• Rising Property Values: With ongoing developments and improvements, property values in Merthyr Tydfil are expected to rise, providing potential capital appreciation for investors.

5. Community and Lifestyle

• Cultural and Recreational Offerings: Merthyr Tydfil has a rich history and offers various recreational activities, including parks, outdoor sports, and cultural events. Such amenities enhance the desirability of the area for families and individuals.

• Educational Institutions: The presence of good schools and colleges contributes to attracting families to the area, increasing demand for housing.

Conclusion

The combination of improved infrastructure, economic growth, affordability, and a strong community makes Merthyr Tydfil a promising area for property investment. As the town continues to develop and modernise, investors can expect both rental yields and capital appreciation, making it an attractive option in the current property market.